Asset-Based Lending

Alston & Bird’s asset-based lending (ABL) team represents agents, lenders and private equity investors in the arrangement, negotiation and documentation of asset-based credit facilities. Our experience ranges from standard ABL facilities with accounts receivable and inventory borrowing base components to facilities with less common features, such as seasonal or product-specific advance rates, equipment and real estate sublimits and in-transit inventory. We have the breadth and capacity to undertake large, complex and multijurisdictional transactions and advise on market-specific workouts and restructurings, should the need arise. Additionally, we have worked hand-in-hand with law firms in Canada and Europe with cross-border ABL financings.

We frequently work on contemporaneous asset-based and leveraged financings for the same borrower with split lien collateral structures. Many of our transactions include the issuance of subordinated secured and unsecured financing with and without equity investments, sponsor support and other credit enhancements. These transactions involve the negotiation of detailed subordination and intercreditor agreements, which members of the group undertake with the assistance of the firm’s experienced and sophisticated bankruptcy practitioners. Alston & Bird’s ABL team has also documented various transactions involving the contemporaneous issuance of public debt instruments or private bond financings.

Alston & Bird’s ABL team has experience in a wide variety of industries, including consumer products, health care, retail, distribution, business services, manufacturing, metals and mining and transportation.

• Represented the agent in a $25 million asset-based revolving loan, with a $15 million accordion feature, to a national steel and iron company.
• Represented the borrower in a $60 million asset-based loan to a wireless company.
• Represented the agent in a $33.5 million asset-based loan to a software and wireless solutions company.
• Represented the lender in a $5 million asset-based loan to a wholesale food distributor.
• Represented the borrower in a $15 million asset-based revolving credit facility to an operator of skilled nursing facilities.
• Represented the agent in a $50 million asset-based revolving credit facility to finance the acquisition and servicing of distressed commercial real estate receivables.
• Represented the agent in a $110 million asset-based split collateral multicurrency credit facility to finance the acquisition of a global recycling company.
• Represented the agent in a $25 million split collateral credit facility to a regional grocery store chain to finance an exit from bankruptcy, including a $20 million revolving credit facility and a $5 million first-out portion of a term loan facility.
• Represented the borrower in a $100 million asset-based revolving credit facility to a specialty retailer of hardwood flooring.
• Represented the lender in a $9 million asset-based credit facility for a metal recycling company.
• Represented the lender in a $10.5 million asset-based credit facility to fund the acquisition of an oil and gas equipment manufacturer and distributor.
• Represented the lender in an $8.25 million asset-based credit facility for an importer and distributor of home goods.
• Represented the borrower in $50 million of revolving, asset-based loans to an international food product distributor.