Financial Services

Schnader’s Financial Services Team is comprised of a multi-disciplinary group of transactional and litigation attorneys who provide both lenders and borrowers with a full range of legal services across the financial industry spectrum. Our transactional attorneys have the breadth and depth of experience to efficiently and effectively structure, restructure, negotiate, and document a wide range of complex loan transactions. Our financial services litigation attorneys are dedicated to representing the interests of our clients in matters affecting the financial services industry – from individual claims to class actions.

Financial Services Litigation

Complex consumer and financial services litigation poses unique challenges for a business. We collaborate with our clients to defend each case aggressively and provide cost-effective representation using experienced, well-trained lawyers and cutting-edge technology.

We have substantial experience handling the entire spectrum of financial and corporate litigation, including class actions under the federal securities laws, ERISA, FCRA, RESPA and other consumer statutes, fair lending claims, claims against corporate trustees, shareholder derivative lawsuits, and minority shareholder oppression claims.

See our Financial Services Litigation Practice page for more information.

Real Estate Finance

The dramatic changes in the real estate market these past several years have caused lenders to be evermore scrupulous in how, when and to whom they extend credit. A one-size-fits-all approach does not work in this economy. Our attorneys get involved at the beginning of the transaction, learn the workings of the business, and find creative approaches to meet our clients’ needs.

Our attorneys counsel clients in complex real estate collateralized financial transactions including syndicated loan transactions, revolving borrowing base credit facilities, construction and permanent financing, and leasehold financing. We have extensive experience representing senior and subordinate lenders in construction lending, having made possible the construction of housing developments, shopping centers, stadiums, hotels, office buildings, industrial facilities, golf courses, and related facilities across the country.

Representative transactions include:

• Representation of a national commercial bank for a $65 million senior secured revolving credit facility to a nationally recognized developer for the construction of active adult communities.
• A series of privatized student housing projects on behalf of public universities involving a total in excess of $400 million.
• A series of New Market Tax Credit Financing Projects for an urban renewal project involving a total in excess of $75 million.
• Representation of a direct-pay letter of credit provider for several series of publicly issued bonds issued on behalf of a private university involving a total in excess of $45 million.
• Representation of a purchaser in the acquisition and financing of a sound studio, recording company and a production company.
• Representation of a national banking association for a $25 million Revolving Line of Credit secured by real estate in Pennsylvania, Illinois, Texas, Indiana, and Maryland.
• Representation of a national commercial bank in a $9.7 million construction loan for the construction of a 42,000-square-foot fitness center and a 2,250-square-foot bank branch and an additional $9.7 million construction loan for the construction of a 43,800-square-foot medical office building.

See our Real Estate Lending Practice page for more information.

Non-Real Estate Based Finance

Having a clear understanding of the industry and the operations of the business seeking to acquire funding is essential to structuring a deal that meets the requirements of the parties. We have handled transactions in a wide range of industries including information technology, transportation, communications, construction services, health care, and nonprofit.

Our attorneys are experienced with single lender and complex multi-lender transactions. By becoming involved at the inception of the deal and assisting with the structuring, preparing and negotiating of documents, we ensure that your transaction is as efficient as possible.

Representative transactions include:

• Representation of a large private foundation in connection with multiple PRIs, extension of secured and unsecured credit facilities, guaranties, and other credit enhancements.
• Multiple health care financings involving the sale of health care receivables into one or more securitized SPE pools.
• Multiple transactions involving term debt and lines of credit extended in connection with business acquisitions in both syndicated and non-syndicated settings.
• Formula-based $160 million line of credit secured by marketable securities.
• $45 million leveraged life insurance program secured by life insurance policies with death benefits in excess of $100 million.
• Multiple extensions of $50 million standby letters of credit to secure casino license applications.
• Refunding of several series of tax-free bonds issued for the benefit of affiliated health care providers by the direct purchase of refunding bonds in excess of $13 million.

Creditors’ Rights and Business Restructuring

In an economy that has witnessed a steep increase in the number of defaults and insolvencies, having creative and practical counsel is essential to protect your interests and minimize risks.

Schnader represents lenders and borrowers in all aspects of debt restructuring and asset recovery, both in and out of bankruptcy. Our clients include secured and unsecured creditors, financially troubled companies and individuals, creditors’ committees, trustees, and equity shareholders. Leveraging the strengths of our diverse and multi-faceted group, we provide tactical planning in our response to financial problems and in anticipation of bankruptcy.

Representative matters include:

• Representation of a consortium of lenders in foreclosure and borrower’s and condominium association’s bankruptcies in a $50 million plus construction mortgage on resort/condominium property.
• Representation of a national bank as lead lender and regional banks as participants in foreclosure of $52 million shopping mall mortgage, including representing lenders in borrower bankruptcy. Lenders took back the property at sheriff’s sale and concluded resale of the mall.
• Representation of a major construction lender bank in bankruptcy of a large regional homebuilder. Representation included foreclosures, deeds in lieu of foreclosure, and opposed debtor-in- possession financings and secured relief from stay in developer bankruptcy. Later, we assisted with the resale of several projects that were in various stages of development.

See our Creditors’ Rights and Business Restructuring Practice page for more information.

Public Finance

We serve as counsel to local and state government agencies and exempt organizations in connection with finance-related transactions.

The projects are varied and often involve the licensing, construction, renovation, sale or refinancing of a building, facility or property in an effort to stimulate economic growth in an area. We have assisted on public financing deals for convention centers and hotels, gaming facilities, waterfront developments, shopping centers, mixed-use commercial facilities, airports, and troubled real estate ventures.

We have experience as underwriter’s counsel, issuer’s counsel, borrower’s counsel, special tax counsel, and credit-enhancer’s counsel. We have assisted with all types of tax-exempt financings or the refunding of tax-exempt transactions, including general obligation issues, and issues relating to higher education housing, infrastructure, health care, and tax and bond anticipation note issues.

Representative transactions include:

• Served as underwriter’s counsel for the City of Pittsburgh’s $43,220,000 Series A of 2012, General Obligation Bonds and $71,275,000 Series B of 2012, General Obligation Bonds.
• Served as underwriter’s counsel regarding a Hotel Tax Room Revenue Bonds Series of 2010 in the principal amount of $173,675,000.
• Served as underwriter’s counsel to the Pennsylvania Turnpike Commission on a bond issuance valued at $300 million.
• Represented a broad range of state and local government agencies in numerous public facility, commercial and economic development projects from convention centers to hotels to retail/entertainment projects to industrial plants. We successfully coordinated the often competing demands of multiple public and private lenders to achieve common goals.
• Representing municipal and redevelopment agencies in the revitalization of an urban mall with coordination of private and public funding, including tax increment financing.

See our Bond Finance or Higher Education Practice pages for more information.