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Practice notes
There are four main types of security available under English law: •mortgage•charge•pledge, and•lienThis Practice Note explains:•the nature of a...
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9th Nov
Practice notes
Development of the Loan Market Association (LMA) documentationThe project to develop the LMA investment grade documents began in 1998 as a response to...
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9th Nov
Practice notes
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...
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9th Nov
Practice notes
What is a direct agreement?Direct agreements are very common in project finance transactions. A direct agreement is an agreement which gives the...
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9th Nov
Practice notes
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...
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9th Nov
Practice notes
This Practice Note covers the typical structure of facility agreements and the key terms and provisions that will be included. It examines the process...
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9th Nov
Practice notes
On an acquisition finance transaction, the borrowing group, in addition to the debt (whether loans or bonds) required to fund the transaction, will...
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9th Nov
Practice notes
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...
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9th Nov
Practice notes
Assignment is a means by which a lender can transfer its interest in a loan to another lender.For an overview of the reasons why a lender might...
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9th Nov
Practice notes
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...
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9th Nov
Practice notes
Given the cross-border nature of many banking transactions, it is common for the principal legal advisors for lenders and borrowers to need to...
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9th Nov
Practice notes
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...
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9th Nov
Practice notes
This Practice Note considers the main terms included in standard form shipbuilding contracts. In particular, it looks at:•standard forms of the...
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9th Nov
Practice notes
Coronavirus (COVID-19): This Practice Note contains information on subjects potentially impacted by the government and regulators' responses to the...
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9th Nov
Practice notes
Commodity repurchases (repos) are a common alternative method of financing. There are a number of advantages for both the financier and a commercial...
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Produced in partnership with Sullivan 12th Jan
Practice notes
Shares are commonly offered as security for a loan in commercial lending transactions.Practice Note: Taking security over shares explains how to take...
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9th Nov

Most recent Banking & Finance glossary content

Practice notes
HaircutA term referring to the reduction in value of an asset or the cash flow received from it. This is usually expressed in percentage terms.Hedge...
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8th Apr
Practice notes
ACTAssociation of Corporate Treasurers.ACT websiteAdministrationAdministration is a procedure under the Insolvency Act 1986 under which a company in...
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8th Apr
Practice notes
Sale and leasebackA transaction where the seller sells real property to the purchaser who then leases it back to the sellerLexis®PSL resourcesSale and...
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8th Apr
Practice notes
Debt pushdownWhere debt held by a holding company is repaid by the holding company and re-borrowed by a subsidiary (normally this is notional and done...
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8th Apr
Practice notes
EBITDAEBITDA is an acronym for ‘earnings before interest, tax, depreciation and amortisation’. The EBITDA of the business forms part of certain...
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8th Apr
Practice notes
WarrantA tradeable security which gives the holder the right, but not the obligation, to buy or sell a specified asset at a specified price on a...
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8th Apr
Practice notes

Junior debt

Debt that is subord

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8th Apr
Practice notes

Quasi-equity

Equity that is invested in t

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8th Apr
Practice notes
Naked credit default swapA credit default swap which is purely speculative and on which neither party owns the reference entityNet asset valueThe...
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8th Apr
Practice notes
IBAThis refers to ICE Benchmarks Administration Ltd, the administrator of LIBORIBOR‘IBORs’ are benchmarks based on Interbank Offered Rates (ie the...
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8th Apr
Practice notes
Tangible assetsAssets with physical substance, eg land, cash or propertyTargetA company or business that is the subject of a proposed...
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8th Apr
Practice notes
Yank the bankA provision in a facility agreement enabling the borrower to replace a lender if it fails to agree to a borrower request for a consent,...
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8th Apr
Practice notes
Capitalisation of interestWhere interest is added to the principal amount of a loan to be paid at the same time as the principal. This contrasts with...
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8th Apr
Practice notes
OECDThe Organisation for Economic Cooperation and Development, an association of industrialised economies which provides inter alia economic research...
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8th Apr
Practice notes
Back officeAdministrative departments in a bank which are involved in activities such as settlement and accountsBack to back transactionA transaction...
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8th Apr
Practice notes
RatingThe assessment given to debt obligations and/or to borrowers by debt rating agencies based on their ability to repay their debtsRating agencyA...
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8th Apr
Practice notes
ParThe face value of a security at which it will be redeemed by the borrower at maturityPari passuLiterally means on an equal basis. The pari passu...
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8th Apr
Practice notes
Lag mechanismThis is a mechanism for calculating compounded SONIA for use in bond or loan markets. It is intended to provide a little visibility to...
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8th Apr
Practice notes
Face valueThe nominal value of a security rather than its market valueFacility agentThe financial institution that acts as administrative agent for...
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8th Apr
Practice notes
Maintenance covenantType of covenant which is tested on a regular basis; contrasts with an incurrence covenant where compliance is only tested when...
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8th Apr

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