Monthly Highlights: May 2018

Monthly Highlights: May 2018

Welcome to this month’s highlights from the Lexis®PSL Banking & Finance team which cover the key news updates from May 2018.

Lending

LMA publishes revised replacement of screen rate clause to provide further flexibility in light of uncertainty over the future of LIBOR

The Loan Market Association (LMA) has published a revised version of the optional ‘replacement of screen rate’ clause that has been included in the primary documents and the leveraged documents since November 2014. The revised version permits amendments to be made to documents with a lower consent threshold than may otherwise be required in a wider range of circumstances than the existing clause.

Members can log into the LMA website with their username and password to view the revised replacement of screen rate clause.

Security

Government shelves Goods Mortgages Bill

On 14 May 2018, HM Treasury (HMT) published its findings after considering the responses it received to its consultation of 22 September 2017 on the proposal to reform the Bills of Sale Acts. HMT has announced that, given the concerns that were raised in the consultation, the small and reducing market and wider work on high-cost credit, the government is not intending to introduce new legislation at this point in time.

Acquisition finance

LMA launches a new form of leveraged intercreditor agreement for a super senior revolving facility and senior term facility structure

LMA has launched a new recommended form of intercreditor agreement (ICA) for leveraged finance transactions that includes a super senior revolving facility structure.

The super senior/senior ICA is based upon the LMA forms of intercreditor agreement for leveraged acquisition finance transactions for: (i) senior/mezzanine structures; and (ii) super senior revolving facility and senior secured note structures. The agreement states that a senior term loan facility allows the acquisition of a target and a super senior revolving

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About the author:

Neeta has been working as a paralegal in Banking and Insolvency for the past 4 and a half years.

She started her legal career at Allen & Overy in 2008 in the midst of the global financial crisis and the collapse of Lehmans where she gained most of her experience.

Neeta also did a short stint in litigation at the Revenue and Customs Prosecutions Office. Neeta graduated with a 2:1 honours degree from University of London, Queen Mary College and went on to obtain a distinction from the College of Law in the Legal Practice Course. She moved to Lexis®PSL in April 2013.