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Oct 25, 2013
A&B Acts for CIT Lending Corporation
Aird & Berlis LLP acted for CIT Lending Corporation, an administrative agent to a syndicate of internationally recognized banks, including itself, in connection with an initial five-year term loan. The loan, which was advanced more than six years ago, was finally repaid in Q2 2013.
Collection of the loan could have included realization on a majority position in a Canadian public company. The borrower and its various subsidiaries, including a professional sports team, an arena holding corporation, the ticketing entity, and the concession entity, provided extensive security to the lenders, all of which was subject to the governing body of the particular professional sport. As additional collateral, a pledge of a 59% majority interest in a Canadian public corporation was given. When realization became a reasonable possibility, steps were commenced to realize on the shares of the Canadian public company. As a defensive measure, the public company created and implemented a shareholder rights plan, announced corporate changes, and announced a proposed public offering of units of shares and warrants of the public company. All such actions required review and response by the lenders.
The A&B team was co-led by Martin Kovnats (Capital Markets/Corporate Finance) and Sam Billard (Financial Services) and included Sam Babe (Financial Services) and Jeffrey Merk (Capital Markets/Corporate Finance).