Nellis & Katz LLP | A Business Law Firm | Aligning with Industry Standards
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Case Studies

Aligning with Industry Standards


Initiation

A family office asked us to review their credit and derivative facilities with a major bulge bracket bank.
 

Execution

During the review process the Nellis team discovered a non-commercially standard clause in the derivatives facility which would allow the bank to put the trade – any trade – back to the family office after 2 years. The client mentioned he had recently been offered a 5 year trade (priced at 5 years not 2 years).
 

Resolution

For an end result, we negotiated a restructuring of the facility, including removing the put right, after amicable negotiations with the bulge bracket bank.