Partner and IP, Tech & Commercial Transactions practice head Frank Azzopardi discussed with Intanify how companies can use intangibles to underpin financing as well as how the leveraging of intellectual property and other intangible assets as collateral in asset-backed financings, secured notes offerings and other securitizations is growing in popularity.

“It’s a fascinating area. It really employs some cutting-edge deal technology,” Frank explained. “What you’re trying to do essentially with the structure at a high level is drop the IP, technology or general intangibles down into a vehicle. The intangibles should be mission critical so that the borrower really can’t survive without them, and then you put them in some sort of vehicle where you have bankruptcy remoteness so that if the borrower or the issuer becomes distressed, all of the incentives are there on assumption rather than rejection.”

“Use your best assets to fund your business - Frank J. Azzopardi talks intangible finance,” Intanify (December 15, 2023) (subscription required)

Copy link to share post