Banking Law Journal Runs Akin Gump Article on Syndicated Term Loans
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The Banking Law Journal has published “Second Circuit Considers Whether Syndicated Term Loans Are Securities,” an article by Akin Gump partners Peter Altman, Douglas Rappaport, Daniel Fisher, Jaisohn Im and Jesse Brush.
The article, which was originally published as a client alert, discusses a case before the U.S. Court of Appeals for the Second Circuit, which is considering whether syndicated term loans—i.e., loans to corporate entities provided by a group of lenders, rather than a single lender—are “securities” under a U.S. Supreme Court decision known as Reves.
The authors look at the background of Reves v. Ernst & Young, discuss the amicus curiae brief filed with the Second Circuit by the Loan Syndications and Trading Association arguing that syndicated term loans are not securities and “warning of the devastating effect on the $1.4 trillion market any other conclusion would cause,” and examine the far-reaching implications were the Second Circuit to rule that syndicated term loans are securities.
To read the full article, click here.
