ESOP Finance
Vorys has a highly experienced interdisciplinary team that represents our regional bank clients in structuring and documenting finance transactions involving ESOPs, including leveraged transactions to support the formation of ESOPs and working capital financing for existing ESOP-owned companies. Given the highly complex nature of ESOPs, leveraged ESOP transactions require specific expertise to ensure that the loans are appropriately documented and secured, including in compliance with relevant ERISA requirements and best practices in leveraged buyout transactions. Because of this, Vorys finance attorneys work hand-in hand with our nationally recognized employee benefits team, which has extensive experience with ESOPs and related regulatory matters, our corporate attorneys and other relevant subject matter experts.
Recent Representative ESOP Finance Transactions:
- Representation of a large regional bank in a senior secured credit facility to a tier 2 automotive supplier, for purposes of selling the company to an ESOP, in a transaction involving subordinated seller financing
- Representation of a regional bank in a senior secured credit facility to a full-service, energy services company owned by an ESOP to provide working capital and term debt financing, in a transaction involving subordinated seller debt
- Representation of a regional bank in a senior secured credit facility to workplace consulting and personnel training firms owned by an ESOP to provide term debt, draw loans and working capital financing in a transaction involving, among other things, the sale of companies to an ESOP and subordinated seller financing to effect that sale
- Representation of a regional bank in a senior secured credit facility to a home building supplies manufacturer owned by an ESOP to provide term debt, draw loans and working capital financing in a transaction involving, among other things, subordinated seller financing
- Representation of a regional bank in a senior secured credit facility to a technology company for purposes of facilitating the restructuring and sale of the borrower to an ESOP, in a transaction involving subordinated seller financing