November 03, 2015

In this article, Jenner & Block Partners Neil Cummings, G. Thomas Stromberg and Richard Levin examine unitranche financing, in which lenders re-engineer the terms of a single tranche of debt through a side agreement called an agreement among lenders, or AAL.   The authors explain how an AAL works; topics covered include, among others, tranching, payment waterfalls, reallocation of economics, voting and buyout rights.