Rick Blumen represents lead arrangers, lenders, borrowers, private equity firms and underwriters, and has served as counsel to several of the largest U.S. commercial banks and their affiliates, and Fortune 500 companies, in a variety of finance transactions. These transactions include 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's 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. He 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, health care, manufacturing, technology, financial services and insurance.
Mr. Blumen currently serves as the firm's financial partner. He is the former chair of the firm's Partners' Committee and co-chair of the Finance Group. Mr. Blumen has been recognized in Chambers USA: America's Leading Lawyers for Business and listed in The Best Lawyers in America for his experience in banking and finance and securitization and structured finance law.
- Represented a leading global investment management company in connection with 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.
- Represented 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 in connection with 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.
- Represented a private equity sponsor in connection with financing and refinancing transactions for seven of its portfolio companies.
- Counsel to the lead arranger and agent in connection with 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 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