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Banking and Finance weekly highlights—28 January 2021

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Negative pledges

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

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...

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...

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...

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...

9th Nov

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

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

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...

9th Nov

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...

9th Nov

In-house

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...

9th Nov

COVID-19

In-house

Practice notes

Introduction to fund finance—capital call facilities

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’...

Produced in partnership with Peter Olds of Cleary, Gottlieb, Steen & Hamilton 12th Jan

Practice notes

Third party security

In many commercial finance transactions, lenders expect to be given some form of credit support to increase their confidence in being able to recover...

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

Transferring a loan by novation

Novation is a means by which a lender can transfer its interest in a loan to another lender.This Practice Note looks at what is meant by novation...

9th Nov

In-house

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

Floating charges—advantages and disadvantages

Summary of advantages and disadvantages of the floating chargeThis Practice Note discusses the advantages and disadvantages of taking a floating as...

9th Nov

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

Shipbuilding contracts

This Practice Note considers the main terms included in standard form shipbuilding contracts. In particular, it looks at:•standard forms of the...

9th Nov

Precedents

Guarantee and indemnity: cross guarantee from group companies—bilateral—all monies

This Deed of guarantee and indemnity is made on [insert day and month] 20[insert year]Parties1[Insert name of Guarantor], a company incorporated in...

9th Nov

Precedents

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...

9th Nov

Most recent Banking & Finance glossary content

Practice notes

Banking & Finance Glossary—S

Sale and leasebackA transaction where the seller sells real property to the purchaser who then leases it back to the sellerLexis®PSL resourcesSale and...

17th Jan

Practice notes

Banking & Finance Glossary—D

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...

17th Jan

Practice notes

Banking & Finance Glossary—L

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...

17th Jan

Practice notes

Banking & Finance Glossary—E

EBITDAEBITDA is an acronym for ‘earnings before interest, tax, depreciation and amortisation’. The EBITDA of the business forms part of certain...

17th Jan

Practice notes

Banking & Finance Glossary—F

Face valueThe nominal value of a security rather than its market valueFacility agentThe financial institution that acts as administrative agent for...

17th Jan

Practice notes

Banking & Finance Glossary—C

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...

24th Dec

Practice notes

Banking & Finance Glossary—A

ACTAssociation of Corporate Treasurers.ACT websiteAdministrationAdministration is a procedure under the Insolvency Act 1986 under which a company in...

24th Dec

Practice notes

Banking & Finance Glossary—U

UCITsUCITS stands for 'undertakings for collective investment in transferable securities'. The term originates from Directive 85/611/EEC on the...

24th Dec

Practice notes

Banking & Finance Glossary—B

Back officeAdministrative departments in a bank which are involved in activities such as settlement and accountsBack to back transactionA transaction...

25th Nov

Practice notes

Banking & Finance Glossary—T

Tangible assetsAssets with physical substance, eg land, cash or propertyTargetA company or business that is the subject of a proposed...

25th Nov

Practice notes

Banking & Finance Glossary—N

Naked credit default swapA credit default swap which is purely speculative and on which neither party owns the reference entityNet asset valueThe...

25th Nov

Practice notes

Banking & Finance Glossary—P

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...

25th Nov

Practice notes

Banking & Finance Glossary—R

RatingThe assessment given to debt obligations and/or to borrowers by debt rating agencies based on their ability to repay their debtsRating agencyA...

25th Nov

Practice notes

Banking & Finance Glossary—H

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...

25th Nov

Practice notes

Banking & Finance Glossary—M

Maintenance covenantType of covenant which is tested on a regular basis; contrasts with an incurrence covenant where compliance is only tested when...

25th Nov

Practice notes

Banking & Finance Glossary—G

GearingA term which indicates the debt to equity ratio of a companyGiltsSecurities issued by the British governmentGrace periodThe period of time...

26th Sep

Practice notes

Banking & Finance Glossary—I

IBAThis refers to ICE Benchmarks Administration Ltd, the administrator of LIBORIBOR‘IBORs’ are benchmarks based on Interbank Offered Rates (ie the...

26th Sep

Practice notes

Banking & Finance Glossary—W

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...

26th Sep

Practice notes

Banking & Finance Glossary—Y

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,...

26th Sep

Practice notes

Banking & Finance Glossary—Q

Quasi-equity

Equity that is invested in t

26th Sep

Banking & Finance glossary

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Latest Banking & Finance News

Brexit Bulletin—UK preparations in the two months to exit day

Brexit Bulletin—getting to grips with retained EU law

Brexit Bulletin—one month to exit day?

Banking and Finance weekly highlights—28 January 2021

Featured Banking & Finance content

Negative pledges

Term Loan B facilities

Intercreditor agreement—key provisions

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

Most recent Banking & Finance glossary content

Quasi-equity

Popular documents

Term Loan B facilities

Build Operate Transfer (BOT) contracts

False imprisonment

Issue of redeemable shares

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