Jason Saltsberg Publishes Article in NYLJ on Refinancing Options for Middle Market Companies

Olshan Corporate partner Jason Saltsberg published an article in the New York Law Journal entitled “The Refinancing Squeeze Facing Middle Market Companies.” In the article, Jason examines how middle market borrowers approaching loan maturities can prepare for a more selective refinancing environment and protect their financing flexibility. Although private credit and other sources of capital remain available, lenders are taking a more disciplined approach to credit quality, cash flow durability, leverage and industry exposure. Borrowers that begin early, test multiple financing sources and prepare for heightened lender diligence are better positioned to secure favorable terms. “Capital remains available, but lenders are becoming more disciplined about where they deploy it and the protections they require in return. For borrowers approaching loan maturities, the most important advantage may be time,” Jason writes. He explains that borrowers should assess more than the headline interest rate when evaluating a refinancing opportunity. Covenants, amortization, collateral requirements, prepayment provisions and other structural terms can materially affect a company’s ability to operate and grow over the life of a facility. “Borrowers should test the market rather than relying on a single financing source; it’s critical to find the lender that is right for their situation,” Jason explains.