The facility agreement

The facility agreement guidance:

This Practice Note focuses on the impact of Brexit on facilities agreements. It discusses (or links to detailed information on): • the position on the Loan Market...

Practice Note

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

Practice Note

In financing transactions, conditions precedent are the conditions that need to be fulfilled for funding to occur. This Practice Note explains: • the nature of conditions...

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

Practice Note

This Practice Note offers general guidance on how to approach document drafting and explains the meaning of some common expressions used in legal documents. It also looks...

Practice Note

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

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

In times of financial crisis, it is not just borrowers who are under financial pressure; lenders are also at risk of getting into financial difficulty. Facility documents...

Practice Note

Where appropriate, this Practice Note highlights relevant provisions in Lexis®PSL Precedent Facility agreement (term loan): single company borrower—bilateral—with or...

Practice Note

Click here to download the latest Anti-Money Laundering 2019 report 2019, published by Getting the Deal Through. Jurisdictions covered The following jurisdictions are...

Practice Note

Click here to download the latest Loans & Secured Financing 2020 report 2020, published by Getting the Deal Through. Jurisdictions covered The following jurisdictions are...

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. In addition...

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

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

Introduction In response to initiatives of European governments to introduce a Pan-European Private Placement (PEPP) market, the Loan Market Association (LMA) has...

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

This Practice Note provides: • information on the background to the transition away from London Interbank Offered Rate (LIBOR) and other Interbank Offered Rates (IBORs)...

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

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

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

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

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

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

Practice Note

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

Practice Note

This Practice Note considers what a purpose clause in a facility agreement actually is. It examines how the actual wording of the clause can impact on whether a...

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

This Practice Note discusses the usual components of a bilateral, committed facility agreement to a corporate borrower. It also assumes there is only one...

Practice Note