The facility agent

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

  • The facility agent
  • The Agent and LMA documentation
  • Role and duties of the Agent
  • Fiduciary duties
  • Rights of the Agent
  • Agency protections and exclusion of liability
  • Appointment and resignation of the Agent
  • Confidentiality
  • Impaired agent provisions
  • Brexit and loss of passporting rights

The facility agent

This Practice Note covers the duties and role of the facility agent (defined in the Loan Market Association (LMA) documentation as the Agent) in a syndicated loan agreement, with reference to relevant provisions in the Loan Market Association’s investment grade and leveraged facilities agreements. It also considers the rights of the Agent and methods it may employ to protect itself and exclude liability whilst carrying out its role as Agent. The Practice Note also considers the mechanisms for the appointment and resignation of the Agent.

The Agent and LMA documentation

The LMA is the key organisation in the London syndication market. Its objective is to develop and maintain recommended forms of documents which will encourage secondary trading in loans and reduce the time and costs spent on negotiations. At the initiative of the LMA, recommended forms of syndicated facility agreements have been developed by committees involving LMA representatives, the British Bankers' Association, the Association of Corporate Treasurers and major City law firms.

Where relevant, this Practice Note highlights relevant provisions dealing with the role and duties of the Agent in:

  1. the LMA investment grade multicurrency term facility agreement (the LMA investment grade facility agreement), and

  2. the LMA leveraged finance multicurrency term and revolving facilities agreement (the LMA leveraged facilities agreement and, together with the LMA investment grade facility agreement, the LMA facility documentation)

Note that

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