Wells Fargo, BMO Capital Markets, BofA Securities, and JP Morgan Complete $1B Sustainability-linked ABL Facility for Southwire

New York and Los Angeles – Paul Hastings LLP, a leading global law firm, represented Wells Fargo Bank, N.A., BMO Capital Markets, BofA Securities, and JP Morgan Chase Bank as lead arrangers and joint bookrunners on a $1 billion sustainability-linked asset-based facility, as part of an integrated working capital financing solution for Southwire Company, LLC, one of North America’s leading manufacturers of wire and cable. This is one of the first sustainability-linked asset based loan facilities in the US market.

Partners Jennifer Yount and Jennifer Hildebrandt led the Paul Hastings team, which also included partner Christopher Ross, and associates Billal Khan and Gregg Myerson.

Environmental, Social & Governance (ESG) loans have closed in record numbers in the first half of 2021, with most of the ESG activity in the loan market focused on sustainability-linked loans.

Sustainability-linked loans, typically based on the LMA-LSTA-APLMA Sustainability Linked Loan Principles & Guidelines, usually include key performance indicators based on environmental, social or other sustainability-linked initiatives, which are then tied to so-called “pricing ratchets” whereby the interest rate margin and/or fees on the loan increase and/or decrease based on the borrower’s performance with respect to these agreed metrics.

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