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Lenders can easily find themselves on the wrong side of a collateral uptiering transaction. With financial stress, a company will sometimes seek a new loan using its existing collateral as security. Lenders in the new loan will likely require a senior priority lien on the company’s collateral. As a result, all existing loans are “uptiered” or “primed” when their liens against the collateral are surpassed by the new loan. While collateral uptiering disputes are not new, the loan market has seen an uptick in these practices.
This white paper reviews uptiering scenarios and recent disputes. We also highlight what lenders can do to mitigate being on the wrong side of a collateral uptiering event. Learn more about:
- Collateral Uptiering Loopholes
- Collateral Uptiering Amendments
- Protecting Lenders from Predatory Uptiering
- Predatory Uptiering: Likely Here to Stay
Download the white paper above.
Renee Kuhl
Managing Director, Loan Agency tel:612-509-2323
Renee is the managing director of the SRS Acquiom Loan Agency Group. With more than 15 years of experience as administrative and collateral agent on loan transactions and more than ten years managing teams in loan agency and restructuring products, she is an accomplished financial industry professional and leads the loan agency business globally.
Before joining SRS Acquiom, Renee served as an administrative vice president at Wilmington Trust, N.A., most recently leading the loan agency and restructuring products. In addition to her 10 years at Wilmington Trust, she also worked for Wells Fargo Bank, N.A. in the corporate trust and shareholder services departments.
Renee has a Juris Doctorate from Mitchell Hamline School of Law in Minnesota, and a B.A. in political science and history from Azusa Pacific University in Azusa, California.