Financing & Loan Transactions
Businesses, sponsors and investors regularly turn to debt to fund acquisitions, support growth, provide working capital or facilitate investments between shareholders and related parties. We act for borrowers and sponsors opposite Canada’s institutional and specialty lenders, moving deals to close while keeping the lending relationship intact.
Let’s TalkDebt and the documents behind it. South Hill Law advises borrowers, lenders, sponsors and shareholders on private lending arrangements and the security that supports them, structuring clear agreements that reflect the deal and allocate risk before anyone signs. The structure of a financing can affect control, cash flow and future flexibility as much as the amount being borrowed.
South Hill Law advises borrowers, lenders, shareholders, investors and private equity sponsors on private financing arrangements, focused on structuring clear, workable agreements that reflect the commercial deal and allocate risk where it belongs.
We advise on the full range of private lending and borrowing arrangements, from straightforward shareholder loans to more complex commercial financings.
Most financings call for protections that give the lender comfort. We prepare the corporate and commercial documentation that supports both secured and unsecured arrangements.
Debt is often a key piece of an acquisition or investment. We work with buyers, sellers, sponsors, investors and portfolio companies on financing that sits alongside the broader deal, coordinating the financing documentation with the acquisition and corporate structure.
Loans between shareholders, owners, management and their companies raise their own corporate and commercial questions. We help clients document these arrangements clearly, covering repayment terms, interest, security, subordination and other negotiated protections.
Financing arrangements rarely stay static after the original deal. We advise on amendments, extensions, refinancings, waivers and other changes to existing debt, focused on documenting the revised commercial terms and protecting the client’s position.
Financing with the bigger picture in mind. A financing agreement should reflect more than the amount borrowed and the repayment schedule. How a financing is structured can affect ownership, control, cash flow, future financing flexibility and the relationship between shareholders, investors and lenders. South Hill Law takes a commercially focused approach, considering the financing in the context of the broader business and transaction.
These are among the questions borrowers and lenders raise most often when structuring a private financing.
Secured lending gives the lender a claim over specific assets if the borrower defaults, while unsecured lending relies on the borrower’s covenant to repay. Security lowers the lender’s risk and often shapes the pricing and terms of the loan.
A guarantee is a promise by a third party, often a shareholder or principal, to repay the debt if the borrower cannot. It gives the lender an additional source of recovery and is common in private and shareholder financings.
Covenants are the promises a borrower makes about how it will operate while the loan is outstanding, from maintaining financial ratios to limiting further debt. They protect the lender and give early warning if the business drifts off course.
Where more than one lender is involved, an intercreditor arrangement sets out who is repaid first and how the lenders’ rights rank against each other. It brings order to priority and enforcement before any difficulty arises.
Yes. Amendments, extensions, refinancings and waivers are common as circumstances change, and each should be documented to capture the revised terms and protect the client’s position.