The following Banking & Finance guidance note provides comprehensive and up to date legal information covering:
Intercreditor arrangements will typically involve at least two types of creditor:
the senior lender(s), whose debt and potentially security ranks highest in the order of payments amongst the creditors, and
the junior lender(s), whose debt and security ranks behind the senior creditor
The borrower will also be a party to the intercreditor arrangements.
On syndicated transactions, the facility agents for the senior and junior lenders will be parties to the intercreditor arrangements, as will the security agent.
For more information, see Key parties to an intercreditor agreement.
The senior lender's lawyers will usually prepare the first draft of the intercreditor arrangements based on a suitable precedent.
When looking for a suitable precedent intercreditor document, it is important to consider:
what type of intercreditor arrangements are being entered into, ie:
subordination of payments—in which case a subordination agreement will be required
priority of security—in which case a deed of priority will be required
both of the above—in which case an intercreditor agreement wil
**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.