Chicago, Miami and Los Angeles attorneys successfully refinance a $90 million credit facility
When a Holland & Knight client faced a $1 million fee to terminate a banking relationship gone sour, lawyers with the firm's Banking and Finance Group developed a strategic and practical solution. Without violating any covenants, the client was able to exit the credit facility at a manageable cost and pave the way for refinancing its credit needs.
Holland & Knight then protected the client's interests in a new $90 million credit facility, leading the representation of the client in negotiations with the lender's counsel.
The refinancing posed unique challenges. In addition to being a Subchapter S corporation 100 percent owned by an employee stock ownership plan (ESOP), the client is a contractor for the federal government, working primarily with the U.S. Agency for International Development to help undeveloped and underdeveloped countries all over the world improve their development processes and infrastructure.
Our lawyers assisted with complex ESOP issues and key issues involving government contracts and corresponding accounts receivable, successfully overcoming multiple proposals from the lender's counsel that could have jeopardized substantial ESOP benefits. We provided technical and strategic advice on the accounts receivable issues that responded effectively to multiple proposals from participating lenders that were raised after the lead lender had signed off on the agreement. In the end, the loan agreement was tailored to the client's business model and unique needs.
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