Financing the acquisition

Financing the acquisition guidance:

On an acquisition finance transaction, the borrowing group, in addition to the debt (whether loans or bonds) required to fund the transaction, will typically need other...

Practice Note

This Practice Note provides an introductory guide to typical provisions found in a straight forward acquisition finance facilities agreement. It provides an overview of...

Practice Note

Most facility agreements require the borrower(s) to prepay all or part of the facility on the occurrence of certain events, known as mandatory prepayment events. For a...

Practice Note

This Practice Note covers the typical characteristics of the mezzanine facility and explains the key changes needed to turn a senior facilities agreement into a mezzanine...

Practice Note

This Practice Note discusses: • the purpose of and typical representations in a leveraged senior facilities agreement (SFA) and how these differ from those in an...

Practice Note

What is second lien financing? Second lien financing is a form of financing that is principally secured on a second ranking basis by the same security package as senior...

Practice Note

This Practice Note is intended as an introduction to facilities typically contained in a leveraged senior facilities agreement (SFA) and covers: • the main...

Practice Note

What are high yield bonds? Bonds are capital markets instruments representing a form of debt security. For more information on capital markets and bond issues, see...

Practice Note

What are they? A bridge to bond facility is a type of acquisition financing where the buyer requires the certainty of a fully committed financing package, but which is...

Practice Note

Overview Covenant 'loose' and covenant 'lite' facilities provoke much debate in the leveraged finance market since they are perceived to indicate that debt markets are...

Practice Note

This Practice Note explains various aspects of a documentary ‘relaxation’ or ‘release’ clause, which is often included in leveraged buy-out (LBO) facility agreements. It...

Practice Note

This Practice Note provides information on European PIK loan facilities (PIK facilities). It discusses: • the key features of PIK facilities, including a typical...

Practice Note

In times of financial crisis, it is not just borrowers who are under financial pressure. Finance parties (eg lenders, facility agents and security agents) are also at...

Practice Note

Facility agreement Hedging clause Some facility agreements include a clause setting out what is required in terms of hedging in a particular transaction (see, for...

Practice Note

What are high-yield covenants? High-yield covenants are crafted to impose restrictions on certain types of activities by the issuer to protect the investment made by...

Practice Note

This Practice Note lists hot topics (with links to the appropriate materials) that may be of interest to Banking & Finance lawyers. It is updated regularly with practical...

Practice Note

BREXIT: The UK is leaving the EU on Exit Day (as defined in the European Union (Withdrawal) Act 2018). This could have an impact on this Practice Note if lenders face...

Practice Note

What are incremental facilities? An incremental facility is feature included in a credit agreement where, subject to meeting certain pre-agreed parameters, the borrower...

Practice Note

This Practice Note explains the Loan Market Association (LMA)’s approach to the calculation of interest in its facility documentation. It explains the calculation of...

Practice Note

One way for banks and other financial institutions to generate revenue is by charging interest on the loans they make. For a bank or financial institution to make money...

Practice Note

What are interim loan agreements? Interim loan agreements are short form loan agreements which are put in place as a 'bridge' until full finance documentation is agreed....

Practice Note

What is a 'capital call facility'? A capital call facility is a form of finance provided by a lender to a fund and typically secured against investors’ undrawn...

Practice Note

BREXIT: The UK is leaving the EU on Exit Day (as defined in the European Union (Withdrawal) Act 2018). This has an impact on this Practice Note. For guidance, see...

Practice Note

There are times when a lender might want to get back some of the money it has lent to a borrower before the borrower is due to repay it. If the borrower is performing its...

Practice Note

What is 'fund finance'? The term 'fund finance' is used to cover a broad spectrum of debt financing arrangements but principally refers to: • equity bridge facilities (or...

Practice Note

Financial covenants are used on a wide range of different kinds of banking transactions to monitor and test the financial performance of the borrowing company or group....

Practice Note

Development of the Loan Market Association (LMA) documentation The project to develop the LMA investment grade documents began in 1998 as a response to demand in the...

Practice Note

In summary, a market disruption clause sets out how interest is calculated for a loan if a lender’s cost of funding the loan is in excess of London Interbank Offered Rate...

Practice Note

What is a 'market flex' provision? A market flex provision is designed to give arrangers and underwriters some flexibility as to the terms of a financing following the...

Practice Note

BREXIT: The UK is leaving the EU on Exit Day (as defined in the European Union (Withdrawal) Act 2018). This has an impact on this Practice Note. For guidance, see News...

Practice Note