May 2005
Structuring Syndicated Loans… Is it Art or Science?

Today’s Loan Syndication Market: Is it Art or Science?
By Michael D. Sharkey, President & CEO and Edward J. Weisto, Director, LaSalle Business Credit

All in all, syndicated loans show no sign of declining in future years since they have grown into one of the asset-based lending industry’s
fastest growing market segments and what began out of necessity has today become an art perfected by the global asset-based lending community.
(Ref # CAP011)

Second Lien Market Offers Attractive Alternatives —
An Essential Competitive Tool for Asset-Based Lenders
By Mary D’Souza, SVP and Salvatore C. Settineri, SVP, GE Capital Markets

The market for second lien loans in 2005 appears poised to exceed the hectic pace of 2004. Year-to-date, second lien issuance exceeded $4.4 billion with growth drivers including an insatiable demand from hedge funds, collateralized loan obligations, prime funds, business development companies and high yield funds.
(Ref # CAP016)

You Say Tomato, We Say… Looking at the Pitfalls of Cross-Border Finance
By Graham Wedlake, Partner and Andrew Stanfield, Associate, Winston & Strawn LLP

Global corporations increasingly require access to facilities in more than one jurisdiction and lenders are facing more than just a language barrier in order to live up to expectations. It is all too easy to fall into the trap of assuming a loan is workable only to learn that implementing it globally may be unduly onerous, or worse still, impossible in certain jurisdictions. A little forward planning early on can avoid cross-border deals ending in the dreaded refrain “let’s call the whole thing off!”
(Ref # INTL024)

Loan Structures du Jour — The Forces Behind Today’s Secured Borrowing Market
By Harold E. Blatt, EVP-Southeast/ Atlantic Division, Bank of America Business Capital

As the economy fluctuates, asset-based loans will evolve to meet borrowers’ changing needs and increased expectations. Asset-based lenders have
demonstrated their commitment to corporate borrowers, and their loan structures will remain strong, viable financing solutions that offers flexibility, liquidity and patient capital.
(Ref # IND062)

Deconstructing Distressed Investing — It’s About Expanded Opportunities
By Matthew Leatherman and Larry Grantham, Associates, Summit Investment Management

The secondary distressed loan market and capital market for trouble companies have grown remarkably as a result of the current liquidity in the capital markets. In addition it has provided another layer of liquidity to the market, one that serves a key, if not the key point in some companies’ life-cycle.

(Ref # LSP020)

Columns

A PROFILE OF SUCCESS
Citi Commercial Asset Based Finance:
A Building Block in Citigroup’s Middle Market Strategy
By Kathleen Z. Lepak, SVP & National Sales Manager, Citi Commercial Asset Based Finance

In January of this year, CitiCapital announced the launch of Citi Commercial Asset Based Finance (CCABF) as a component of Citigroup’s overall strategy to offer services geared to the needs of small to medium-sized companies. As Citigroup’s senior management sees it, the small to medium-enterprise (SME) is the next frontier in the United States with CCABF being a key building block in Citi’s strategy to expand its SME footprint.

(Ref # COMP010)

TURNAROUND CORNER
Up in the Air With the Airline Industry: Lending Crisis or Opportunity?
By Daniel Wikel, Managing Director, Brent Johnson and Anu Singh, Directors, Huron Consulting Group

It is often said that in the midst of a crisis is where the best opportunities lie. There is little doubt that the
airline industry today is in crisis and that there are a number of opportunities for capital providers and lenders to
consider.

(Ref # TM036)

FACTORING FOCUS
The Devil in the Details — The Price of Seemingly Insignificant Decisions
By Gene Goudy, Vice President, ARI Global

In the world of financial markets, one thing is clear — today’s ripple in the financial tide pool can turn into tomorrow’s tempest. The challenge is not so much in being a clairvoyant to foretell the disaster, but rather in preparing for the worst-case scenario.

(Ref # INS007)

LEGAL EYES
Second Lien Financings — Answers to the Most Frequently Asked Questions (Part II)

By Kirk A. Davenport, Marc P. Hanrahan, Peter M. Gilhuly, Partners, Latham & Watkins and Neil Cummings, Partner, Proskauer Rose

The purpose of this series is to answer some of the most frequently asked questions about second lien financings, which continue to be increasingly popular. As second lien financings offer a flexible alternative, they will, without a doubt, remain on the menu for years to come.
(Ref # LGL044)