The following Tax guidance note provides comprehensive and up to date legal information covering:
In a syndicated transaction, two or more lenders agree to make loans to a borrower on common terms which are set out in a single facility agreement entered into by all of the parties.
Practice Note: Key features of syndicated facilities explains the key features of syndicated facilities and the principles upon which syndication is based, such as the several rights and obligations of the finance parties, syndicate democracy, pro rata sharing between lenders and the role of the agent. It also explains the advantages of syndicated facilities for a borrower and the role of the secondary loan market in syndicated transactions, looking at the Loan Market Association standard transfer provisions.
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 borrower is performing its obligations under the loan agreement, the lender cannot demand early repayment of the loan or take any steps to recover amounts from the borrower. The only option therefore, is to look to transfer the loan to another lender.
Transferring the loan might be the objective from the outset of the transaction if, for example:
there is insufficient time to get a syndicate of lenders together at the start
**Trials are provided to all LexisPSL and LexisLibrary content, excluding Practice Compliance, Practice Management and Risk and Compliance, subscription packages are tailored to your specific needs. 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
0330 161 1234
To view our latest legal guidance content,sign-in to Lexis®PSL or register for a free trial.