"Cadwalader has once again more than earned its tier one status in structured finance and securitization through its representation of blue-chip corporate and investment banking clients [in] matters [including] CLOs and CDOs." - IFLR 1000
Cadwalader has actively represented issuers, underwriters, and collateral managers in collateralized loan obligation ("CLO") transactions and related product types for over 12 years. We have extensive experience with both "cashflow" and synthetic total return structures. We also have a dominant market position in "CLO 3.0" activity helping shape the legal aspects of CLOs as the asset class emerges from the financial downturn. While such transactions are primarily backed by broadly syndicated bank loans (i.e., "leveraged loans"), we have also been involved with transactions backed by middle market loans, high-yield bonds, and interests in other CLOs.
Our attorneys have also represented underwriters, issuers, portfolio managers and other large financial institutions in connection with the workout of distressed CLOs and leveraged loan warehouse transactions, including both cash and synthetic structures. In connection with such workouts, we have conducted extensive negotiations with all affected parties, including trustees, rating agencies, investors, warehouse lenders and credit enhancement providers. We have represented clients in the establishment of funds or other vehicles to acquire such assets. In addition, Cadwalader has extensive experience in representing traders of distressed debt, including negotiation of trading done pursuant to the Loan Syndications and Trading Association, Inc.'s (LSTA) documentation, credit opportunity funds, and other structured funds. Cadwalader has advised on all aspects of workouts including analysis of default and enforcement provisions, amendments to deal documents and liquidations of collateral by both public and private sales under Article 9 of the Uniform Commercial Code.
Our CLO practice has recently been focusing on the latest innovations in the CLO 3.0 market, including structuring transactions (both European and US) to comply with the European risk retention requirements (Article 122a for credit institutions and equivalent rules for insurers, reinsurers, UCITS and alternative investment funds). Our London office has advised on most of the CLO 3.0 transactions in the European market, including the Cairn III CLO managed by Cairn Capital and the ALME Loan Funding 2013-1 transaction managed by Apollo Credit Management.