Subscription Secured Credit Facilities (Finance)

 

Sullivan & Worcester LLP’s Subscription Secured Credit Facilities practice represents lenders, real estate funds and private equity funds in the specialized lending area known as subscription line lending. Subscription lines are revolving credit facilities for funds that are secured by pledges of fund investors’ capital commitments and the funds’ rights to call capital. They have become indispensable in the real estate and private equity fund arenas because they provide the liquidity that enables discretionary funds to execute transactions nimbly in an ever more competitive and fast-paced acquisitions marketplace and then on a more orderly schedule call investors’ equity capital to pay down the credit line.

Practice Profile (PDF) 

Representative Client Work

  • $125 million facility from WestLB AG, New York Branch to a real estate fund
  • $200 million facility from Wells Fargo Bank, National Association to a real estate fund
  • £25 million facility from Sumitomo Mitsui Banking Corporation to a real estate fund
  • Facilities of various sizes from, among others, Citibank, Fleet Bank, UBS and Bank of America to a series of private equity funds managed by J.W. Childs Advisors
  • €65 million facility from London branch of a major European bank to an English mezzanine fund
  • $2.6 billion facility from a small syndicate of major banks to a group of mezzanine funds managed by Goldman Sachs (represented major European bank in connection with its $525 million portion)
  • $300 million facility from the New York branch of a major European bank to a loan and debt securities fund