With a potential recession looming, PE sponsors are always looking for new sources of liquidity beyond well-established options already in the market such as subscription facilities and net asset value facilities. To that end, Strafford CLE Webinars recently hosted a program to examine margin credit facilities for PE sponsors. The panel, featuring Haynes and Boone partners LeAnn L. Chen and Craig S. Unterberg, discussed considerations for PE sponsors looking to put margin credit facilities in place and key terms to be negotiated, including loan-to-value ratios, issuer events, facility adjustment events, collateral withdrawals and restricted transaction covenants. This article recaps relevant takeaways from the program. For more from Chen, see “Covenants, Diligence and Collateral Considerations of NAV Facilities for Private Funds (Part Two of Two)” (May 10, 2022).