The following Banking & Finance practice note Produced in partnership with Osborne Clarke provides comprehensive and up to date legal information covering:
An incremental facility is feature included in a credit agreement where, subject to meeting certain pre-agreed parameters, the borrower is afforded the flexibility to incur additional (or increases in) debt facility commitments. These will typically benefit from guarantees and security on the same basis as other existing facility commitments.
Incremental facilities are sometimes referred to as 'accordion' facilities as total commitments under the credit agreement will expand if incremental debt is incurred.
Incremental debt flexibility is a common feature of large-cap sponsor transactions (especially the term loan B market). In addition, in a borrower-friendly market, it is not uncommon to see mid-cap borrowers requesting this flexibility, albeit subject to tighter constraints. Indeed, the Loan Market Association form of loan agreement for use in leveraged finance transactions (the LMA Credit Document) now incorporates optional drafting for such a feature.
Whereas in large-cap deal structures, junior debt and revolving facilities are frequently permitted to be incurred, in the mid-cap only pari-ranking senior term facilities are typically contemplated. An exception to this is where certain unitranche—super-senior mid-cap structures allow also for the incurrence of additional super-senior term debt.
The key feature of incremental debt is its simplicity. As there is no need to negotiate a separate credit agreement, borrowers benefit from a short execution timetable once the incremental
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The Public Private Partnership (PPP) models are a popular way for governments to involve private investment, expertise and risk in procuring infrastructure, with the potential to deliver a project more efficiently and economically. One of the most popular PPP models for procuring infrastructure
This Practice Note provides guidance on the interpretation and application of the relevant provisions of the CPR. Depending on the court in which your matter is proceeding, you may also need to be mindful of additional provisions—see further below.You should also consider if the proceedings will be
You may apply simplified customer due diligence (SDD) measures in relation to particular business relationships or transactions which you determine present a low risk of money laundering or terrorist financing, having taken into account:•your organisation-wide risk assessment—see Practice Note:
Disposal and devolutionThe equity of redemption arises as soon as the mortgage is made. It is an interest in the land which the mortgagor can:•transfer, lease or mortgage inter vivos, or•by will (it passes on intestacy)No cloggingIt is a fundamental principle of a mortgage that there must be no clog
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