Letters of Credit and Liquidity Facilities

  • Overview
  • Attorneys

For more than 30 years Kutak Rock has actively represented domestic and foreign banks, savings institutions and other financial institutions in connection with their issuance of letters of credit or liquidity facilities (such as lines of credit, revolving credit agreements and standby purchase agreements) in support of publicly traded debt securities. These transactions have included taxable and tax‑exempt municipal securities as well as corporate debt and have numbered in the thousands. Further, these transactions have included virtually all sectors of the capital markets, including municipal bonds, health care, public power, housing, structured finance and asset securitization. The experience our attorneys have derived from these representations has proven invaluable when assisting our clients in structuring complex financial transactions using such products.

Additionally, our national banking lawyers have represented numerous bank clients providing letter of credit facilities to the insurance industry for use in connection with ceding risk under domestically issued insurance contracts to offshore reinsurance companies. These engagements have involved facilities which aggregate in the billions of dollars.