Securitization

The rapid growth of securitization is changing the face of financing. As new deal structures and markets continue to emerge, businesses need a competitive edge in managing their capital structure, income flow, and risk exposure. They need a law firm with international reach and keen insights into what drives success—and failure—in cross-border and cross-sector financing.

O’Melveny is a recognized leader in structuring, negotiating, and closing complex financing transactions around the world. In 2007, on behalf of KKR Financial LLC, we handled what was at the time believed to be the largest ever non-bank arbitrage collateralized loan obligation transaction, with an initial issuance size of more than US$3.5 billion, and the potential for upsizing to US$5 billion. Whether undertaking a securitization of trademark license royalties, motion picture or television royalties, premium finance loans, or more traditional receivables, clients in many different industries rely on us to protect their interests and help maximize their returns.

For more than half a century, our Corporate Finance lawyers have handled novel securitizations and stayed ahead of the curve. We played a part in some of the first securitization deals involving traditional receivables, as well as innovative transnational and synthetic financings in esoteric new asset classes and emerging markets. As authorities in this field, we are counseling Chinese governmental agencies on developing the legal structure for its securitization market and proposed amendments to existing laws and regulations.

No matter where a transaction takes place, or which industries it involves, O’Melveny has the knowledge, skill, and worldwide offices to help successfully close the deal.

O'Melveny recently issued its CLO Update, an alert describing the ways in which preliminary rulemaking proposals, and the contents of studies required under Dodd-Frank, suggest that CLOs will be swept up into many aspects of Dodd-Frank that were designed to target securitizations of significantly different and less stable asset classes than commercial loans.  The alert also summarizes the new and proposed SEC rules that will require more CLO managers to register with the SEC under the Investment Advisers Act of 1940, and consider the impact the Foreign Account Tax Compliance Act of 2009 may have on CLOs.  Please click here to read the alert.

Key Facts