We are delighted to share a series of videos and Jargon Buster which demystify some of the back-leverage financing techniques used in real estate finance. The videos feature specialist senior lawyers from Ashurst's Real Estate Finance, Global Loans and Derivatives teams in London. If you any questions about the videos, please reach out to the team below.
In this video Ruth Harris, Sarah Winter and Stuart Blacklock explain what back leverage is and why it is used, with a focus on real estate finance. They explore how lenders might fund themselves and who participates in back leverage transactions, as well as some of the factors that will drive the choice of format.
In this video Ruth Harris, James Coiley, Stuart Blacklock and Thomas West look at a selection of structures and financing techniques to facilitate back leverage.
In this video Ruth Harris and Sarah Winter look at some of the ways that lenders originating loans can anticipate the needs of a future back leverage provider, including key due diligence questions.
In this video Ruth Harris, James Coiley, Stuart Blacklock and Thomas West take a closer look at the covenants you can expect in back leverage documents, including those relating to the borrower and those relating to the underlying loans. They explore the cash flows and information flows as well as control over consents, waivers, and amendments in relation to the underlying loans and assets.
In this video Ruth Harris, James Coiley, Stuart Blacklock and Thomas West take a look at the likely triggers for defaults or cash traps in back leverage documents and the availability of cures or equivalents. They also consider the enforcement options available to the provider of the back leverage.
The information provided is not intended to be a comprehensive review of all developments in the law and practice, or to cover all aspects of those referred to.
Readers should take legal advice before applying it to specific issues or transactions.
