Monthly Highlights: November 2016

Monthly Highlights: November 2016

Welcome to this month’s highlights from the Lexis®PSL Banking & Finance team which cover the key news updates from November 2016.

LMA developments

Updated LMA leveraged finance documents and new REF security agreement

On the 18th November 2016, the Loan Market Association (LMA) issued revised forms of term sheet, senior facilities agreement, intercreditor agreement and hedging letter for leveraged acquisition finance transactions.

The LMA also launched a new security agreement intended for use on real estate finance (REF) transactions (the REF Security Agreement) as well as consequential changes to the LMA REF facility agreements and term sheets.

Both initiatives are in response to demand from participants in the syndicated loan market, who felt the projects would be beneficial for the market.

Changes to the leveraged documentation

The key changes to the leveraged documents relate to the inclusion of:

  1. an option for the establishment of additional term loan facilities (referred to as 'incremental facilities')
  2. an option providing for free transferability by lenders to pre-approved entities (with other transfers requiring consent)
  3. protections to address the new UK Persons with Significant Control (PSC) regime (which is relevant where security is taken over shares in UK companies), and
  4. general updates in response to market developments, including the removal of alternative reference bank provisions. To the extent appropriate, changes of a more general nature have also been incorporated across the LMA suite of facility agreements. This includes a change to the definition of 'Reference Bank Rate' to reflect the new ICE LIBOR submission methodology.

For more information on the changes to the leveraged documents, see News Analysis: LMA leveraged documents—what has changed?

The LMA then published a revised version of its Leveraged Facilities Agreement on 23 November to correct a minor typographical error in Clause 33.12(d) (Resignation of the Agent). However, note that the mark-up of the Leveraged Facility Agreement which is available on the LMA website continues to

Subscription Form

Related Articles:
Latest Articles:

Already a subscriber? Login
RELX (UK) Limited, trading as LexisNexis, and our LexisNexis Legal & Professional group companies will contact you to confirm your email address. You can manage your communication preferences via our Preference Centre. You can learn more about how we handle your personal data and your rights by reviewing our  Privacy Policy.

Access this article and thousands of others like it free by subscribing to our blog.

Read full article

Already a subscriber? Login

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.