Think (and Move) Fast!
A manufacturing client of Quarles & Brady needed a $350 million revolving credit facility and wanted to issue an additional $150 million in high-yield bonds. Completing the work would require coordinating with attorneys in six states, plus Nova Scotia, Ontario, and Switzerland. Here's the catch: our client needed to complete both transactions in less than 30 days. Attorneys involved in the case worked independently to craft and approve the transactions while negotiating between the parties to achieve consensus and build the necessary documents to complete the job. Both transactions were finalized before the deadline, and the team was able to take advantage of fleeting market and interest-rate conditions that made the whole plan possible.
Putting the Puzzle Together While the Pieces Change
Quarles & Brady was working on two major deals for a bank seeking to structure syndicated loans totaling $100 million to a nationwide network of assisted care facilities. One transaction involved the refinancing of an existing facility for a borrower; 73 of its subsidiaries guaranteed the debt and used both personal property and 20 parcels of real estate in five states as collateral. The second transaction involved secured loans to the same borrower (but with a different set of 70-plus guarantors and a different collateral package) to provide additional financing to supplement existing Federal Housing Administration (FHA) loans to the borrower, guaranteed by the Department of Housing and Urban Development (HUD). Shortly before the closing of the first transaction, Medicare/Medicaid changed its rules for reimbursement—and the borrower’s financial condition was significantly damaged.
Our attorneys assisted our health care borrower client within the tight deadline while representing the needs of our bank client and successfully navigating the transactional and government obstacles to complete the work.