Loan Market Association (LMA) leveraged documentation
Loan Market Association (LMA) leveraged documentation

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

  • Loan Market Association (LMA) leveraged documentation
  • Development of the Loan Market Association (LMA) documentation
  • How to use the documents
  • The mandate and syndication documents
  • Facility Agreements
  • The LMA Intercreditor Agreements

Development of the Loan Market Association (LMA) documentation

The project to develop the LMA investment grade documents began in 1998 as a response to demand in the market for a standard form of syndicated facility agreement. The development of the LMA leveraged documents began in much the same way with the form of facility agreement for leveraged acquisition finance transactions first issued in 2004 followed by the recommended form of Intercreditor Agreement for leveraged acquisition finance transactions (senior and mezzanine) in 2009.

The LMA has continued to publish additional precedents to reflect demand from, and developments in, the market. There are now standard forms for use in transactions involving senior secured notes and for transactions involving senior secured notes and high yield notes, reflecting the large number of transactions funded partially or totally by way of high yield debt.

The intention behind both the LMA standard form documents is to save time and cost by providing a position that reflects current market practice for that type of transaction. 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.

This Practice Note explains how to use the standard form documents and provides an overview of the key standard form documents for use on leveraged transactions. It