Banking

Project Financing

Project financing is one of the key areas of expertise of PRK Partners in the field of finance. PRK Partners assists its banking clients in all types of projects, including residential developments, commercial or office buildings, construction of industrial buildings or power plants.

Our activities for our clients in this area encompasses all phases of project financing, from legal due diligence, helping resolve uncovered problems or risks, preparation and negotiation of loan and security documentation, registration of relevant security instruments and assistance in reviewing the fulfillment of drawdown conditions.

Especially in years 2009-2010, PRK Partners acquired a remarkably strong position in the field of financing electricity production from renewable resources, including wind and solar power plants, as well as biomass power plants. Thanks to our detailed knowledge of the relevant regulatory requirements and vast experience in the field of financing, PRK Partners can offer its clients, whether banks or electricity producers, first class advice.

Syndicated Loans

PRK Partners frequently advises on banking transactions involving syndicated financing or club loans, normally as advisor to the arranger, agent or security agent respectively, sometimes also as advisor to other involved lenders, or to the borrower.

When representing the arranger, the lawyers of PRK Partners actively take part in the structuring the transaction and prepare loan and security documentation, take part in the negotiations with the lender, and upon execution, arrange for registration of security instruments. A usual part of our activities in relation to syndicated loans is the issuance of a legal opinion on the validity of the loan agreement and security documentation.

The specialists of PRK Partners are capable of successfully handling problems resulting from the intertwining of various jurisdictions and their applicable laws, which is important given by the fact that syndicated loans in the present market often involve an international element.

Acquisition Financing

The role of the lawyers of PRK Partners in financing acquisitions begins in the phase of transaction structuring. We strive to fully meet the requirements of the bank and its client, while satisfying all applicable legal regulations (including provisions on financial assistance).

A habitual part of our job in acquisition financing is legal due diligence for the project, whether it be performance of our own due diligence or conducting a review of the due diligence report prepared by the legal representative of the buyer or the seller.

As with other types of loans, the central point of our work is the preparation and negotiation of loan and security documentation, bearing in mind the specifics of acquisition financing, and further, registration of security instruments and monitoring the fulfilment of drawdown conditions.

Because of our wide experience, PRK Partners as legal advisors to the financing bank can also step into the negotiations between the buyer and seller and significantly aid the successful completion of the transaction. PRK Partners may also act as an escrow agent to effect the settlement of transactions, or prepare settlement documentation for a third party escrow agent, whether it be the financing bank itself, or any other third party.

In acquisition financing projects, PRK Partners provides services not only to financing banks, but also to borrowers acting as buyers in the transaction.

Security Documentation

A natural part of loan transactions is the preparation of security documentation. PRK Partners prepares all types of standard security documents such as mortgage or pledge agreements, agreements on the assignment of rights or receivables, guarantees and bank guarantees, insurance assignment agreements, bianco promissory notes (accompanied by an agreement on completion rights), as well as a variety of non-standard security instruments, the need of which may arise in specific transactions.

Because of the extensive and long term experience of PRK Partners and its strong position in the field of banking and finance, PRK Partners undoubtedly belongs to the creators of the market standard in loan security documentation, and PRK Partners is often instructed to prepare model security documents.

PRK Partners also frequently prepares security documentation for local jurisdictions in international transactions, when the loan agreement itself is subject to a different jurisdiction. In this respect, the capability of PRK Partners to elaborate documentation in any language required by the client may be very useful, as well a the ability to understand specific needs of the client as well as matters arising under different legal systems.

Model Documentation

Aside from mandates under which we prepare unique documentation tailored for a specific transaction, specialists at PRK Partners are frequently instructed by our banking clients to prepare model loan and security documentation for certain categories of standardised loan transactions. Our model loan agreements are designed to meet the client's requirements, including revolving, current and term loans, as well as framework agreements including, aside from different types of loans, contractual framework for letters of credit and bank guarantees. Model security documentation normally includes all standard security instruments, i.e. mortgages or pledges of assets of all types, security assignments of receivables (from the assignment of specific receivables to global assignment of receivables), security transfers of rights, bianco promissory notes with completion arrangements, insurance assignment agreements, and others. Model agreements are habitually prepared with different versions to cover all typical alternatives which may arise or be needed.

Aside from the preparation of model agreements, we are also often asked to prepare handbooks with instructions and guidance on how to correctly use the model agreement or agreements, as well as tutoring the relevant bank workers.

Consumer Loans

Our typical engagement in the area of consumer loans is the elaboration of model loan documentation and preparation of explanatory materials for employees of the relevant loan provider, whether banks or non-banking providers. Aside from this, we are prepared to provide clients offering consumer loans effective solutions to specific problems which arise or may arise in this area.

Trade Finance

The legal services of PRK Partners in this area include the preparation of documentation for factoring and forfaiting, export loans and also financing foreign investments. Especially in connection with the financing of foreign investments, we are able to prepare security documentation governed by the relevant foreign jurisdiction, whether through our own offices abroad or in coordination with our cooperating law firms. Thanks to our membership in Lex Mundi, we can cover virtually any jurisdiction in the world.

In the field of trade financing, we prepare documentation for payment and security instruments, typically bank guarantees, letters of credit, documentary collections, either as separate contractual documentation, or as a part of a specific loan. The lawyers of PRK Partners are capable of preparing documentation perfectly tailored to each transaction, reflecting its specific requirements as well model documentation for our client's standard transactions.

Treasury

PRK Partners provides its clients regular advice in structuring and executing transactions with investment instruments (or derivatives), pursuant to domestic or international standards (ISDA – International Swaps and Derivatives Association), EMA (European Master Agreement) including matters related to financial security and close out netting.

PRK Partners provided exclusive legal advisory to the Czech Banking Association in the preparation of a framework agreement for trading derivatives and schedules for specific product lines, which have become standard for trading on the Czech inter-bank and client markets. PRK Partners also performs regular monitoring of the compliance of the Czech Framework Agreement and its product lines with Czech legislation and issues legal opinions for the Czech Banking Association and the Czech National Bank.

International alliance membership