Parties involved in restructurings

Lending parties—facility agents, security agents and security trustees

In the restructuring of a syndicated loan deal, the role of the facility agent and security agent or security trustee will be key, as the trigger for a restructuring will usually be the occurrence of an event of default under the loan documentation. The facility agent (sometimes referred to as simply the ‘agent’) acts as the representative for the lenders within a syndicated loan arrangement. It is the main point of contact between the borrower and the lenders and acts as a conduit between them. Its role is a purely administrative one and focuses on the management of communication and money flows between the parties, but will also inform the lenders of the occurrence of events of default. Acceleration in syndicated loans will usually be a majority lender decision, and the facility agent must accelerate the loan if it has been instructed to do so by the majority lenders.

In a secured syndicated transaction,