Asset-backed Finance

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 categories: structured finance, which includes asset securitization and structured lending; and trade finance, which includes receivables monetization and supply chain finance (SCF).

Our experience covers 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 team’s 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, we assist clients in asset-backed lending transactions that employ securitization legal isolation mechanics. The firm represents borrowers and lenders establishing structured loan programs involving traditional financial assets such as trade receivables, credit card receivables, vehicle loans and leases, and healthcare receivables.

The ABF team’s asset-backed finance lawyers also assist clients in accounts receivable and accounts payable finance transactions that do not use traditional securitization mechanics.

We provide 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.

Lawyers also 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.