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Intercreditor agreements are legal contracts that outline the rights and relationships between different classes of lenders who have a claim on the same borrower’s assets. These agreements are crucial in complex financing structures, such as th… Read More

A borrowing base sets the maximum amount that a borrower can access through an asset-based loan. Borrowers and lenders negotiate the calculation of the borrowing base by determining the value of different types of collateral (such as cash, accounts r… Read More

Financial covenants are used as a tool for lenders to measure a borrower’s health and to test their ability to incur additional debt. Borrowers and lenders alike negotiate financial covenants to ensure it works both for the company’s ability to r… Read More

In the world of commercial lending, securing debt financing is a crucial aspect of business operations. Uniform Commercial Code (“UCC”) financing statements play a vital role in this process, serving as a legal document filed by a lender to secur… Read More

We are seeing many credit agreements being amended within today’s market. Most of these amendments are centered around the rising interest rates in the economy and macroeconomic changes. While many amendments in the recent market have been focused… Read More

Original Issue Discount (or “OID”) can dramatically change the cost of capital when borrowing from a lender. Lenders could charge a fee on each issuance of debt under their facility, which would ultimately lower the net proceeds received by a bor… Read More

Legal Scale is pleased to announce that we have been included in the 2024 edition of Best Lawyers: Ones to Watch® in America, with special recognition of Neil ODonnell. See our profile on the Best Lawyers website. About Best Lawyers Best Lawyers is… Read More

What is Shadow Stock? Shadow stock is a subclass of preferred stock that provides its holder the same rights and privileges of other preferred stockholders other than certain limited rights and privileges (i.e., liquidation and dividend rights), whic… Read More