Rick Blumen is co-chair of the Finance Group and former chair of the firm’s Partners’ Committee. He represents lead arrangers, lenders, borrowers, private equity firms and underwriters in a variety of finance transactions, including secured and unsecured syndicated credit facilities, private placements, high-yield debt offerings, acquisition financings, recapitalizations, first- and second-lien loans, mezzanine financings and pre-petition workouts and restructurings.
Mr. Blumen has served as counsel to several of the largest U.S. commercial banks and their affiliates. His experience on the lender side ranges from asset-based lending to investment grade, and from rock stars to major airline carriers to portfolio companies of Berkshire Hathaway. Mr. Blumen represents publicly traded and private companies, including several portfolio companies of private equity firms, as borrowers and issuers of debt and quasi-debt securities. His sector experience includes food and beverage, media, aircraft, transportation, retail and consumer services, healthcare, manufacturing, technology, financial services and insurance.
- Represented a leading global investment management company with respect to its $1.25 billion syndicated credit facility.
- Counsel to the lead arranger and agent in connection with a $500 million letter of credit facility provided to one of the largest air delivery and freight services companies in the world.
- Counsel to a publicly traded consumer products company in connection with its $330 million debt recapitalization consisting of syndicated bank debt and a public bond offering.
- Counsel to the lead arranger and agent in connection with a $525 million acquisition financing, creating the largest Anheuser-Busch distributor in the United States.
- Represented a plastic packaging manufacturer (a portfolio company of a private equity firm) in connection with its $730 million debt recapitalization and related consent solicitation/tender offer for its public bonds.
- Representation of the lead arranger and agent in connection with a $345 million acquisition financing for a publicly traded air transport company.
- Counsel to a publicly traded provider of specialized insurance products with respect to its private and public debt financings in excess of $1 billion.
- Represented the lead arranger and agent in connection with a $400 million syndicated credit facility to a leading pharmaceutical care provider.
- Representation of a private equity sponsor with respect to financing and refinancing transactions for seven of its portfolio companies.
- Counsel to the lead arranger and agent with respect to a $150 million asset-based credit facility to a publicly traded media company.
- Counsel to the lead arranger and agent in several Islamic financing transactions to the portfolio companies of a private equity sponsor.
Rick Blumen, co-leader of the firm’s Finance Group, was extensively quoted in Forbes and Mergermarket regarding his recent paper discussing earnout provisions – a tool that allows sellers to receive additional purchase price payments following the closing for hitting financial or other goals, while providing buyers a means to mitigate uncertainty in the valuation of a business; however, according to Blumen, these useful tools are not always getting proper accounting treatment in financing documents.
June 12, 2014
In the News
Twenty-one Alston & Bird practices have been listed in the 2014 Chambers USA: America’s Leading Lawyers for Business. These include Antitrust; Banking & Finance; Bankruptcy/Restructuring; Construction; Corporate/M&A; Employee Benefits & Executive Compensation; Energy; Environment; ERISA Litigation; Government: Government Relations; Healthcare; Immigration; Intellectual Property; International Trade; Labor & Employment; Litigation: General Commercial, including White-Collar and Securities Litigation; Outsourcing; Privacy & Data Security; Real Estate; REITs; and Tax.
May 23, 2014
In the News
One hundred and forty-four Alston & Bird attorneys have been selected for inclusion in the 2014 edition of The Best Lawyers in America. In addition, 17 Alston & Bird attorneys were named “Lawyer of the Year” by the publication.
August 15, 2013
In the News
Rick Blumen, co-leader of the firm’s Finance Group, was quoted in Forbes and Mergermarket regarding his recent paper discussing earnout provisions – a tool that allows sellers to receive additional purchase price payments following the closing for hitting financial or other goals, while providing buyers a means to mitigate uncertainty in the valuation of a business; however, according to Blumen, these useful tools are not always getting proper accounting treatment in financing documents.
Blumen said where some lenders miss the mark is in the treatment of such non-cash EBITDA adjustments for purposes of calculating debt covenants. By not excluding these non-cash items, leverage ratios can be distorted in a counterintuitive way.
“The exclusion of earnouts from total debt started out as an exception to the rule, but has become the norm among lenders to private equity,” Blumen explained.
June 11, 2014