Hedging in loan transactions

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Guide to completing the ISDA Schedule

Coronavirus (COVID-19): This Practice Note contains information on subjects potentially impacted by the government and regulators' responses to the...

Project finance—key finance documents

Documents for a typical project finance transaction can be split into three broad categories:•finance documents—the finance documents govern the debt...

Director’s certificate for a bilateral loan: borrower

[insert date]To:[insert full name and address of lender]Dear [insert full name of lender]I am a director of [insert full name of borrower] (the...

Borrowing base facilities—structure, key terms and risks

What is a borrowing base facility?Borrowing base facilities ('BB Facilities') are a type of trade finance. They are working capital credit facilities...

Practice notes

Drafting or reviewing legal opinions in loan transactions

Legal opinions are one of the key documentary conditions precedent in loan transactions. The legal opinion is a letter which sets out opinions as to...

9th Nov

Practice notes

Instructing and managing local counsel

Given the cross-border nature of many banking transactions, it is common for the principal legal advisors for lenders and borrowers to need to...

9th Nov

Practice notes

Debt securities—10b-5 letters

A 10b-5 letter (also referred to as a 'disclosure letter') is a letter delivered to the underwriters by issuer's and underwriters' counsel in...

Produced in partnership with Charles Farnsworth of Baker McKenzie and Adam Farlow of Baker McKenzie 12th Jan

Practice notes

Key issues in loan transfers

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...

9th Nov

Practice notes

Bridge to bond facilities

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...

Produced in partnership with Cleary Gottlieb and Ian Chin of Morrison & Foerster 12th Jan

Practice notes

Transferring a loan by sub-participation

Sub-participation is a means by which a lender can transfer its risk in a loan to another lender. For an overview of the reasons why a lender might...

9th Nov

Practice notes

Increased costs

This Practice Note considers the costs that a lender operating in the interbank market will incur when providing funding to a borrower and the steps...

9th Nov

Practice notes

On demand guarantees and bonds

Coronavirus (COVID-19): The ICC has issued a guidance paper on the impact of COVID-19 on trade finance transactions issued subject to ICC rules. For...

9th Nov

Practice notes

Crystallisation of floating charges

The key feature of a floating charge is that, until it crystallises, the chargor is entitled to deal with the charged assets in the normal course of...

9th Nov

Practice notes

Drafting and negotiating the facility agreement

This Practice Note covers the typical structure of facility agreements and the key terms and provisions that will be included. It examines the process...

9th Nov

Practice notes

Direct agreements in project finance transactions

What is a direct agreement?Direct agreements are very common in project finance transactions. A direct agreement is an agreement which gives the...

9th Nov

Sustainable Business Toolkit

Practice notes

ISDA definitions

The vast majority of derivative transactions are documented by standard documentation developed and published by the International Swaps and...

9th Nov

In-house

Practice notes

Foreign exchange (FX) derivatives

BREXIT: As of 31 January 2020, the UK is no longer an EU Member State, but has entered an implementation period during which it continues to be...

9th Nov

Practice notes

Loan Market Association (LMA)—news on documentation [Archived]

This Practice Note is an archive of news from the Loan Market Association (LMA) on LMA documentation and related topics. It covers LMA updates from...

9th Nov

Practice notes

Common financial covenants

This Practice Note explains certain common financial covenants used in commercial finance transactions including:•minimum net worth test•gearing...

9th Nov

Practice notes

Term Loan B facilities

This Practice Note discusses Term Loan B (TLB) facilities which frequently appear as a tranche of senior facilities in syndicated loans in leveraged...

Produced in partnership with Carlo de Vito Piscicelli of Cleary Gottlieb Steen & Hamilton 12th Jan

Most recent Hedging in loan transactions content

Practice notes

Brexit—impact on finance transactions

Brexit—impact on finance transactionsThis Practice Note:•explains where to find information on the latest Brexit developments, in particular, those...

13th May

Sustainable Business Toolkit

Brexit

Practice notes

Guide to hedging within a financing context—the ISDA documents

IP COMPLETION DAY: 11pm (GMT) on 31 December 2020 marks the end of the Brexit transition/implementation period entered into following the UK’s...

Produced in partnership with Ruth Marken and Jason Brooks of CMS 28th Apr

Practice notes

Use of derivatives to hedge against risk in a lending context

Coronavirus (COVID-19): This Practice Note contains information on subjects potentially impacted by the government and regulators' responses to the...

28th Apr

Practice notes

Guide to hedging within a financing context—for the financing lawyer

IP COMPLETION DAY: 11pm (GMT) on 31 December 2020 marks the end of the Brexit transition/implementation period entered into following the UK’s...

Produced in partnership with Ruth Marken and Mike Tanner of CMS 26th Apr

Practice notes

Types of derivatives

The main types of derivatives are:•swaps•forwards •futures, and•optionsThis Practice Note explains the key features of each of the above types of...

8th Apr

Practice notes

Derivatives—capacity and authority

It is not only banks and financial institutions that enter into derivative transactions. The types of entities seeking to enter into derivative...

8th Apr

Practice notes

The nature of financial derivatives

What is a derivative?A derivative is a type of financial instrument whose value is based upon the value of an underlying asset, index, rate or...

8th Apr

Practice notes

Dealing with hedging arrangements in loan transactions

BREXIT: As of 31 January 2020, the UK is no longer an EU Member State, but has entered an implementation period during which it continues to be...

8th Apr

Practice notes

Derivatives—ISDA documentation framework

The International Swaps and Derivatives Association, Inc. (ISDA) is an association for participants in the derivatives industry. It has developed...

8th Apr

Practice notes

Use of derivatives in a lending context—documentation issues

Borrowers often hedge against the following risks in the context of a lending transaction:•interest rate risk by entering into an interest rate...

8th Apr

Practice notes

Financial derivatives—netting

NettingNetting is a contractual arrangement between two parties. Essentially, it means that the parties have agreed that, when they transact with each...

23rd Mar

Q&As

When entering hedging agreements in relation to a lending transaction, should the legal opinion on those hedging agreements or should a separate opinion be sought?

There are two types of opinions which we refer to in relation to this Q&A:•capacity opinions—this is typically desirable for a Banking and Finance...

28th Nov

Hedging in loan transactions

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Latest Banking & Finance News

The Law Commission’s recommendations for updating for the Land Registration Act 2002—thoughts on the government response

FCA looks to challenge Amigo Loans’ restructuring plan

Banking and Finance weekly highlights—13 May 2021

SEC brought 75 crypto-related actions in 7.5 years

Featured Banking & Finance content

Guide to completing the ISDA Schedule

Project finance—key finance documents

Director’s certificate for a bilateral loan: borrower

Borrowing base facilities—structure, key terms and risks

Most recent Hedging in loan transactions content

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