As alternative financing sources become increasingly more prevalent and important in the capital markets, non-bank lenders and new market entrants have turned to Simpson Thacher for advice in structuring and executing innovative and complex direct lending solutions.
We draw on our experience representing lenders across the financing spectrum to offer unparalleled, up-to-the-minute knowledge of the latest market terms. With direct lending and private credit experience in the U.S., European and Asian markets, our team is complemented by integrated specialists in private and registered funds, capital markets, fund finance, derivatives, bank regulatory and tax matters.
Our deep experience advising direct lenders includes:
- First lien and second lien financings
- Stretch senior and unitranche financings
- Holdco financings, including back leverage of minority and preferred equity interests
- Joint development arrangements and development financings (with project finance-like protections)
- Structured products and bankruptcy remote structuring
- Equity kickers and related governance and tax matters
- Synthetic financings, including reversionary interests and forward sales
- Intercreditor relationships with commercial bank lenders and commodity hedge providers
- Extensive workout, restructuring and bankruptcy experience
- Obtaining leverage against assets owned by direct lenders to increase returns
- Purchasing and financing the purchase of loan and debt portfolios
We leverage:
| Our experience in representing borrowers and traditional commercial bank lenders
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to reach commercial solutions and facilitate a smooth entrance into the capital structure
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| Our experience in workout and restructurings, and the expertise of our bankruptcy team
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to structure transactions (including in distressed situations) intelligently on the front end, and to provide best-in-class advice in workout situations
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| Our experience in acquisition finance |
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to help our client as debt and equity investors in the acquisition context |
We offer debt fund assistance to:
- analyze and acquire bond and loan exposure in the secondary market, including in debt-for-control contexts, by leveraging our private capital and special situations investment group (PSIG)
- obtain back-leverage against existing investments
- manage funding obligations using subscription lines
- comply with backend fund and co-investor requirements