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Select specific jurisdictions to filter on. Alternatively select no jurisdictions and select questions below to see all jurisdiction answers for them.
Select specific questions to filter on. Alternatively select no questions and select jurisdictions above to see all question answers for them.
What was the level of debt-financed M&A in your jurisdiction in 2017? Was there any industry or sector that saw any noteworthy uptick in M&A and related financing deal activity in 2017 in your jurisdiction?
What types of investors are the most frequent sources of acquisition financing in your jurisdiction?
What types of debt instruments do you most frequently see for local acquisition financings, and in what currency are these instruments most frequently denominated?
What are the usual maturities and amortisation profiles of acquisition-financing credit facilities?
Discuss the types of conditions to funding you have seen in recent acquisition financings in your jurisdiction.
Are there legal, banking, currency exchange, regulatory or other considerations that favour certain sources of funds over others? For instance, mandatory reserve or deposit requirements? Do the requirements vary by type and location of investor or lender? Were there any changes in the regulatory environment last year or are there any proposed changes for the current year that are likely to affect M&A and related financing deal activity?
What is the withholding tax treatment of acquisition finance loans made by, and bonds purchased by, foreign investors in your jurisdiction? Were there any changes in tax laws in 2017 that are likely to affect M&A and related financing deal activity?
Are there limitations on the ability of the parties to choose a foreign law as the governing law of the financing or to select a foreign forum for dispute resolution? Discuss any limitations with respect to enforceability of the financing documents as a result of choosing a foreign law.
Does the local insolvency regime treat lenders under an unsecured credit facility on a on a pari passu basis with all other unsecured obligations of the debtor?
Discuss the legal and practical limitations on obtaining a valid and perfected security interest. Are there any documentation, execution or delivery formalities required by local law to make the security interest enforceable against the debtor and third parties? Is it possible to create a floating blanket lien on all of the debtor’s assets?
Does the local insolvency regime enable complex capital structures, for instance, recognising the validity of subordination of payment, subordination of liens, and other inter-creditor agreements?
If an equity investor provides some of the debt financing, do local insolvency rules afford those loans equal treatment as other (third-party) loans?
Are there any other insolvency considerations that a foreign debt-investor or lender should be aware of?
What do you expect to see in terms of market developments for acquisition financings in 2018?
Davis Polk & Wardwell LLP
Holland & Knight LLP
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