Cadwalader Guides Launch of Innovative Alternative Letter of Credit Facility

December 13, 2023

We recently represented GreensLedge Advisors LLC, as part of a joint venture with Vanbridge (a division of Edgewood Partners Insurance Center (EPIC)), to create an innovative insurance solution product by applying structured finance and credit derivative technology to support the posting of letters of credit as collateral for insurance deductibles of various operating companies.

Driven by the needs of operating companies to post collateral for deductibles under their worker’s compensation, auto and general liability policies, the product relies on a unique financing and hedging arrangement to provide a cost-efficient, off-balance sheet, method for funding such posting of collateral. Looking ahead, EPIC and GreensLedge plan to utilize the structure of the program in the future to grow the business and provide this insurance solution to more operating companies. The official press release can be found here.

The transaction, announced on December 4, has touched many areas of law and involved various teams at the Firm, including capital markets, corporate, tax, derivatives and bankruptcy.  The Cadwalader team included Neil Weidner, Ira Schacter, Ivan Loncar, Sophie Cuthbertson, Ingrid Bagby, Nick Ramphal, Kathryn Borgeson, Fran Linares, Eric Waxman, Lindsey Kister, Michael Gonzalez, Evan Bloom and Christal McCamy.