Feature

An overview of debt and royalty financing structures for life sciences businesses

As a supplement to equity capital and licensing and collaboration revenues, there is an increasingly broad array of evolving methods for life sciences companies to raise money to fund their drug development and commercialisation activities. These include venture lending, growth lending, synthetic royalties, drug development financings and royalty monetisations. Each of these are available to life sciences companies in different stages of development, have unique structures, involve varying degrees of contractual restrictions, and provide different risk/return profiles for investors. In this article the authors consider these key methods for raising non-dilutive financing.

“High Water” mark EBITDA provisions: should lenders fight fires with a pre-agreed “low water” mark EBITDA de minimis?

In this article Michelle Gilmore-Parry considers what “high water” mark EBITDA provisions are and discusses the key considerations lenders and practitioners should take into account when reviewing leveraged finance and private credit documentation.

Cross-border privilege

This article considers cross-border privilege issues that can arise in a number of different contexts.

The lucrative AI debt market – disrupting traditional debt lending: Part 2

In two parts, the first published in the March edition (2025) 3 JIBFL 183, we discuss how the unique nature of AI companies and AI-related assets could present distinct challenges to traditional lending frameworks if such frameworks are not properly considered in the context of such companies. Part 1 discussed how the unique nature of AI companies could present distinct challenges to financial covenants in traditional lending frameworks if not properly considered in the context of such companies.
This Part 2 discusses how the unique nature of AI-related assets could present similar challenges to the process of security enforcement in traditional lending frameworks if not properly considered in the context of such assets. 

Recognition and enforcement of Ukrainian judgments against the Russian Federation in the UK

This article examines the enforcement prospects of Ukrainian court judgments against the Russian Federation in the UK, following Ukraine’s 2022 Supreme Court ruling denying Russia immunity in tort claims related to its military aggression. It analyses key procedural obstacles under the Hague Convention 2019, the UK’s State Immunity Act 1978 and common law, including jurisdiction, service of process and public policy defences, highlighting the tension between sovereign immunity and international accountability.

Political risk insurance: safeguarding global supply chains amidst geopolitical tensions?

In today’s interconnected global economy, a stable supply chain is crucial for international business. From our experience, companies are increasingly concerned about geopolitical risk as a key risk factor when managing their supply chains. This article explores whether political risk insurance can help to safeguard supply chains against geopolitical disruption.

Proposed UK corporate redomiciliation: issues for lenders

Corporate redomiciliation is the process by which a company changes the place where it is incorporated, so as to become subject to the company law of a new jurisdiction whilst retaining its legal personality. In October 2024, a UK independent expert panel issued a report to the UK government setting out a proposed regime for corporate redomiciliation to and from the UK. This followed a government consultation on the principles of a corporate redomiciliation regime in October 2021. The government intends to consult in due course on a proposed regime design.
Many jurisdictions, including Singapore, Jersey, Luxembourg, Australia, New Zealand, Canada and the State of Delaware, already have redomiciliation regimes and companies in the EU can move to another member state. Lenders may therefore have already considered the implications of a company redomiciling but each regime differs and it is therefore important to consider the UK proposals and their implications.

Understanding debt finance in football: debt factoring and secured loans

In this article the authors examine the use of certain debt products, namely debt factoring of future revenue streams and secured loan facilities, in the football finance market.

Transfer restrictions in the age of synthetic credit risk transfer: time for a re-assessment?

Hedging: where is the dividing line?

Hedging is a risk management practice commonly adopted by financial institutions and corporations to manage their exposure to risks like movements in interest rates, currency fluctuations, or commodity price fluctuations. This article highlights the legal distinction between “internal” and “external” hedging, as discussed in Rhine Shipping DMCC v Vitol SA. ¹ It then considers the implications of this legal distinction and practical steps to mitigate any associated litigation risks.