Lee Federman
Lee Federman has a wide range of experience across debt finance products and has worked in several key financial jurisdictions (London, New York, Hong Kong, and Amsterdam). He advises bank lenders, alternate credit providers, major financial sponsors, and their portfolio companies on cross-border investment grade and leveraged financings and other event-driven financings.
Lee acted on deals involving a number of private equity sponsors active in Europe prior to joining Jones Day in November 2018 including Apax, Apollo, Blackstone, Carlyle, Graphite, KKR, Montagu, Permira, Rutland, and Waterland as well as alternate capital providers including Ares, Crescent, Fortress, Gemcorp, Oppenheimer, Towerbrook, and Tyndaris.
Lee is recommended in Legal 500 UK (2016-2018) for acquisition finance and general syndicated lending and described as "knowledgeable, responsive and practical" and praised for his ability to "explain complicated matters in plain English." Lee also worked with Credit Suisse and Lehman Brothers on secondment assignments. He regularly holds training programs and is a presenter at conferences for the Loan Market Association.
Practice Area
Panel
- Contributing Author
Qualified Year
- 2006
Membership
- Law Society of England and Wales
Education
- London School of Economics (Graduate Diploma in Banking 2008; B.A. in History 2000)
- BPP Law School (Legal Practice Course 2004; Postgraduate Diploma in Law 2003)
2 Contributions by Lee Federman
PRACTICE NOTES
European unitranche financing: structures, borrower advantages and disadvantages, intercreditor frameworks (super-senior RCF), Agreements Among Lenders, and first loss/second loss arrangements
Unitranche facilities have become a core source of financing for both financial sponsor-backed and non sponsor-backed borrowers in the European leveraged loan market. First gaining traction in the US mid‑market in 2005, they have, from 2012 onwards, steadily captured a share of the European mid‑market each year. This Practice Note describes unitranche facilities, sets out the benefits and drawbacks for borrowers, and examines their principal features in depth. For broader introductory material on acquisition and leveraged finance, see Practice Note: Acquisition finance—introductory guide. For explanations of terminology used in this Practice Note, see: Glossary of acquisition finance terms and jargon.
What is a unitranche facility?
In essence, a unitranche facility is a single‑tranche term loan bearing a blended senior/junior interest rate, typically recorded in one loan agreement. Unitranche financings are commonly arranged by non‑traditional lenders, ie private debt funds and other alternative credit providers, and are provided in amounts from around €10m up to €2bn. At the upper end of the spectrum, debt funds frequently compete with the high yield and European Term Loan B markets for the most visible and complex transactions, including large...
Banking & Finance
PRACTICE NOTES
Market Flex in Underwritten Loan Syndications: Pricing, Structural and Terms Flex, Reverse Flex, Decision-making, Timing and LMA Mandate Letter Wording
What is a 'market flex' provision?
A market flex clause grants arrangers and underwriters limited leeway to adjust financing terms after the relevant facility agreement has been signed. As they arrange and underwrite the transaction, these provisions help them distribute the debt to the market and cut their exposure to the borrower to an agreed minimum hold level. Typical wording allows the arrangers or underwriters to alter certain key aspects of the financing to make it more appealing to potential lenders, particularly in more difficult or volatile market conditions. It is usually addressed in the mandate letter or the arrangement/underwriting fee letter. For more information on mandate letters, see Practice Note: Mandate letters. For more on the role of arrangers and underwriters in loan transactions, see Practice Note: The finance parties.
When can market flex be used?
These provisions can be used by the arrangers or underwriters before or after the facility documentation is signed.
What can be flexed?...
Banking & Finance
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