STB recently represented the Federal Reserve Bank of New York (FRBNY) in connection with the June 26 completion of certain arrangements associated with JPMorgan Chase & Co.’s acquisition of Bear Stearns Companies Inc. To facilitate the arrangements, the FRBNY extended a $28.82 billion loan and JPMorgan Chase & Co. extended a $1.15 billion loan to Maiden Lane LLC, a Delaware limited liability company (LLC). The proceeds of the loans were used by the LLC to purchase a portfolio of assets formerly owned by Bear Stearns Companies Inc. Such portfolio of assets was pledged as security against such extensions of credit and will be managed by BlackRock Financial Management, Inc. under guidelines established by the FRBNY. Payments by the LLC from the proceeds of the portfolio will be made in the following order: operating expenses of the LLC, principal due to the FRBNY, interest due to the FRBNY, principal due to JPMorgan Chase & Co., and interest due to JPMorgan Chase & Co. Any remaining funds will be paid to the FRBNY.
The team of STB attorneys who worked on this transaction includes: Richard Beattie, Pete Ruegger, David Eisenberg, Gary Rice, Brian Steinhardt, Erik Hepler, Jennifer Chien, Matt Einbinder, Nicholas Baker, Jason Friedman and summer associate David Schneider (Corporate), Steven Todrys and Moshe Schwerd (Tax), Jennifer Rackoff (Intellectual Property), Paul Curnin and Marsha Yee (Litigation), and Nicholas Dang and Marguerite Duke (Paralegal).