McGuireWoods’ asset-backed finance (ABF) team represents financial institutions and other business clients in a wide range of structured finance and specialty finance transactions. In addition to an established asset securitization practice, the firm represents lenders and borrowers in structured loan transactions and purchasers, sellers, suppliers and account debtors with traditional and emerging programs involving the transfer or early payment of commercial receivables.
The ABF team works with clients in connection with asset-backed transactions that involve borrowing or lending against, or otherwise monetizing, financial assets. The deals generally fall into two broad categories: structured finance, which includes asset securitization and structured lending; and trade finance, which includes receivables monetization and supply chain finance.
For over 30 years, McGuireWoods has represented issuers, underwriters, placement agents, credit support providers and corporate trustees in connection with the securitization of a variety of traditional and nontraditional financial assets, including:
- Automobile Loans
- Trade Receivables
- Equipment Leases
- Credit Card Receivables
- Renewable Energy Assets
- Government Contract Receivables
The ABF team has experience with a range of securitization structures and programs, including common law trusts; statutory trusts, including series trusts and titling trusts; and single-seller and multi-seller asset-backed commercial paper programs. The ABF teams’ transactional work includes public sales of asset-backed securities and private placements of rated and unrated securities backed by financial assets.
In addition to our asset securitization practice, the ABF team assists clients in asset-backed lending transactions that employ securitization legal isolation mechanics. The firm represents borrowers and lenders in establishing structured loan programs involving traditional financial assets such as trade receivables, credit card receivables, vehicle loans and leases, and healthcare receivables.
The ABF teams’ asset-backed finance lawyers also assist clients in accounts receivable and accounts payable finance transactions that do not use traditional securitization mechanics.
Our experienced team also provides guidance on transactions involving different ways to monetize accounts receivable. The team assists sellers and buyers of trade receivables with nonrecourse receivables purchase programs and other committed and uncommitted arrangements under which receivables are transferred directly to third parties.
Supply Chain Finance
ABF team lawyers handle supply chain finance transactions through which account debtors with superior credit ratings can leverage their size and stability to reduce costs, improve liquidity and negotiate better terms with suppliers, including reverse factoring arrangements and other accounts payable finance programs. SCF transactions allow account debtors to extend payment terms while assisting suppliers in accessing liquidity.