Evaluating Key Intercreditor Arrangements: First Lien/Second Lien, Split Collateral, Senior/Mezzanine, Unitranche

Multifaceted intercreditor arrangements are increasingly common in commercial finance transactions. Counsel involved in commercial finance transactions must critically analyze the principal legal issues in complex intercreditor arrangements.

The most prevalent intercreditor arrangements are first lien/second lien, split collateral, senior/mezzanine, and unitranche. Counsel must understand the pros and cons of each intercreditor arrangement and factors to consider in advising clients regarding the intercreditor arrangements in a given deal.

Listen as our authoritative panel of finance attorneys compares essential aspects of intercreditor structures--first lien/second lien, split collateral, senior/mezzanine, and unitranche arrangements. The panel will also discuss recent trends in intercreditor arrangements and salient problems.

1. Overview and comparison of the four most prevalent intercreditor arrangements
   1. First lien/second lien
   2. Split collateral
   3. Senior/mezzanine
   4. Unitranche
2. Prevalence of the different intercreditor arrangements
3. Factors driving the choice of intercreditor arrangement
4. Risks involved in the intercreditor arrangements, including the pros and cons of the different intercreditor arrangements
5. Recent trends in intercreditor arrangements

The panel will review these and other noteworthy issues:

• What are the key differences in structure and terms among the various types of intercreditor arrangements?
• What are the most significant risks associated with the different intercreditor arrangements?
• What factors are primary determinants of the type of intercreditor arrangements best suited for a particular transaction?
• What are the trends in different intercreditor arrangements?