Loan Market Association investment grade documentation
Loan Market Association investment grade documentation

The following Banking & Finance guidance note provides comprehensive and up to date legal information covering:

  • Loan Market Association investment grade documentation
  • Development of the Loan Market Association (LMA) documentation
  • Assumptions in the documents
  • How to use the documents
  • The mandate and syndication documents
  • The facility documents

Development of the Loan Market Association (LMA) documentation

The project to develop the LMA primary documents began in 1998 as a response to demand in the market for a standard form of syndicated facility agreement. The recommended form of syndicated facility agreements (the Primary Documents) were developed by representatives of the LMA, the British Bankers' Association, the Association of Corporate Treasurers and major City law firms.

The intention behind the documents is to save time and costs by providing a position that reflects current market practice for a syndicated loan being provided to a corporate borrower with an investment grade credit rating. The documents are intended to only be a starting point and it is not possible to use the documents without making any amendments or additions.

All of the LMA documents referred to in this Practice Note are available on the LMA website (subscription required for full access). The LMA also publishes a Users Guide to Investment Grade Primary Documentation (the User Guide), which can be viewed on their website.

In addition, the LMA provides guidance periodically following legal or market developments which have resulted in significant amendments to the document wording or providing further background to the position being taken by the LMA, for example in relation to the London Inter-Bank Offered Rate (LIBOR) and financial and trade sanctions. This guidance can also be viewed by members on the LMA website.

For information on the latest developments to all of the LMA documents, see Practice Note: Loan Market Association (LMA)—latest news on documentation.

This Practice Note considers the evolution of the LMA recommended forms of investment grade documentation and the