The following Banking & Finance guidance note provides comprehensive and up to date legal information covering:
This Practice Note provides an introductory guide to typical provisions found in a straight forward acquisition finance facilities agreement. It provides an overview of the possible sources of finance for leveraged acquisitions before discussing the main ways in which a typical facilities agreement for leveraged acquisitions differs from a standard investment grade facilities agreement. Each section of a standard senior leveraged finance facilities agreement is then discussed in turn.
For an introductory guide to acquisition finance, see Practice Note: Acquisition finance—introductory guide and for a glossary of commonly used terms and jargon, see the Glossary of acquisition finance terms and jargon.
Senior facilities are one of a number of different possible sources of finance for leveraged acquisitions—this section contains a brief overview of the various possible funding sources.
An acquisition finance transaction will normally be funded using a mixture of debt and equity. The debt may take the form of high yield or senior notes or loans or both. Where the transaction is funded wholly or partially with loans, more than one type of loan facility may be used, each type ranking differently in the capital structure. There are a number of different possible combinations, but as an example, a transaction may be funded using:
senior facilities only, eg in the form of Facility
**excludes LexisPSL Practice Compliance, Practice Management and Risk and Compliance. To discuss trialling these LexisPSL services please email customer service via our online form. Free trials are only available to individuals based in the UK. We may terminate this trial at any time or decide not to give a trial, for any reason. Trial includes one question to LexisAsk during the length of the trial.
To view the latest version of this document and thousands of others like it, sign-in to LexisPSL or register for a free trial.
Existing user? Sign-in
Take a free trial
Take a free trial
0330 161 1234