"B" Loans and Other "Last Out" Financings

SRZ counsels many of the country's largest and most established lenders in the origination and acquisition of "B" loans and other "last out" debt financings. These labels often refer to loans that 1) are secured by liens junior in priority to those securing a senior asset-based credit facility or 2) share the same lien securing the "A" or senior loans, but the proceeds of collateral subject to such lien are applied first to repay the "A," or "first out," loans and second to repay the "B," or "last out," loans. Given the high level of risk attendant to "B" loans, our lawyers work closely with clients to structure and document the deal to maximize the inherent value of the collateral pool supporting the loan and in negotiating the terms of the intercreditor relationship between the "A" and "B" lenders.