James Spencer
Partner in the finance group of Shoosmiths’ London office with experience in a wide spectrum of finance and structured finance transactions, with a particular focus:
- advising lenders on CRE loan originations and deal structuring as well as advising lenders, loan servicers and borrowers on distressed CRE loan work outs and restructurings.
- representing loan agents and servicers on their appointments to a variety of financing transactions from CRE, CMBS, shipping, leverage, aviation,, NPLs portfolios, loan on loan and warehouse lines.
Practice Area
Panel
- Contributing Author
1 Contributions by James Spencer
PRACTICE NOTES
Senior and mezzanine real estate finance: subordination, security, payment waterfalls and key intercreditor rights (cure, purchase, enforcement), with a note on A/B loans
Intercreditor agreements
Intercreditor agreements are intricate, highly detailed frameworks between two or more creditor groups, requiring careful, case-specific scrutiny. That scrutiny spans the extent of rights and safeguards afforded to each creditor class in each case, and whether the structure, taken as a whole, functions economically within the context of the relevant lending arrangements.
For information on intercreditor arrangements in a general context, see Practice Notes:
Introductory guide to Intercreditor Agreements
Intercreditor payment priorities and requisite majorities
Basic introduction to super senior, senior, mezzanine and junior debt
Intercreditor agreements are regularly encountered in real estate finance because many lenders are only willing to lend on a senior basis up to a specified loan to value, which varies from deal to deal by reference to the nature of the underlying real estate, the ultimate risk profile of the transaction, and prevailing market conditions. Quite often, for a variety of reasons, borrowers seek higher leverage. Mezzanine lenders can help to bridge this funding gap...
Banking & Finance
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