McGuireWoods Charlotte senior counsel
Staci Rosche wrote a
May 6, 2020, column for The Secured Lender on updates the Federal Reserve made to its
Main Street Loan Program (MSLP).
In it, Rosche wrote that asset-based lenders will need to consider the
impact of MSLP terms on existing financing structures, “such as the pari
passu treatment of collateral, which could dilute existing lender security
in some cases, the continued reliance on EBITDA and risk ratings as metrics
for determining borrower eligibility and the restrictions on assignments by
Rosche included a chart outlining key differences among the MSLP’s three
facilities and noted where original terms have changed, including the
addition of the Main Street Priority Loan Facility. She also discussed
several unresolved concerns in the MSLP for asset-based lenders, as well as
revisions supported by the Secured Finance Network.