Hedging in loan transactions

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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

Sources of Shari'ah

IntroductionShari'ah (also Sharia, Shariah or Shari’a) (literally, in Arabic, 'the path towards the watering place') or Islamic law is the legal

Common financial covenants

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

Negative pledges

This Practice Note examines:•why negative pledge clauses are used in commercial transactions •the consequences of breaching negative pledge

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...

19th Oct

Practice notes

What is securitisation?

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 Oct

Practice notes

Synthetic securitisations

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 Oct

Practice notes

Incremental debt flexibility or accordion features

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

26th Sep

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...

26th Sep

Practice notes

Overdrafts, term loans and revolving credit facilities

This Practice Note explains the features of three common types of loan facility:•overdrafts•term loans, and•revolving credit facilities (RCFs)It also...

26th Sep

In-house

Practice notes

Types of debt securities

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...

26th Sep

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...

26th Sep

Practice notes

Events of default

This Practice Note considers:•the purpose of events of default included in facility agreements•common events of default relating to borrowers and...

26th Sep

COVID-19

In-house

Practice notes

Fixed and floating charges

There are four main types of security available under English law: •mortgage•charge•pledge, and•lienThis Practice Note explains:•the nature of a...

26th Sep

Practice notes

ISDA definitions

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

26th Sep

In-house

Precedents

Real property mortgage: single company chargor—bilateral—specific monies

This Deed is made on [insert day and month] 20[insert year]Parties1[Insert name of Chargor], a company incorporated in England and Wales with...

26th Sep

Practice notes

Loan Market Association (LMA) leveraged documentation

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

26th Sep

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...

26th Sep

Practice notes

Intercreditor agreement—key provisions

This Practice Note provides an introduction to intercreditor agreements and their key provisions. This Practice Note:•explains the purpose of having...

26th Sep

Practice notes

Role of a bond trustee

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...

25th Sep

Most recent Hedging in loan transactions content

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...

26th Sep

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...

26th Sep

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...

26th Sep

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 Sep

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...

6th Oct

Practice notes

Guide to hedging within a financing context—the ISDA documents

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...

Produced in partnership with Ruth Marken and Jason Brooks of CMS 7th Oct

Practice notes

Financial derivatives—netting

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...

12th Oct

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...

19th Oct

Practice notes

The nature of financial 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...

19th Oct

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...

19th Oct

Practice notes

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

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...

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

Practice notes

Brexit—impact on finance transactions

As of exit day, the UK is no longer an EU Member State, but it has entered an implementation period during which it continues to be treated by the EU...

28th Oct

Brexit