Lma Facility Agreement Guide

While the Association of Corporate Treasurers (ACT) is closely involved in the implementation of the terms of the DMA facility agreements for investment grade documents, the LMA did not obtain the ACT`s comments or comments on the terms of the Leverage Agreement on facilities. The leverage agreement is therefore a more favourable document for lenders than investment documents and, importantly, is not supported by the ACT. These documents (for which the context allows, text, content, tables with macros and electronic interfaces, as well as their underlying assumptions, conversions, formulas, algorithms, calculations and other mathematical and financial techniques) are made available to members of the Credit Market Association, in accordance with the statutes of the Credit Market Association (a copy of which is available here) to facilitate the documentation of transactions in the credit markets. None of the Loan Market Association, Allen-Overy or Clifford Chance assumes any responsibility for any use of these materials or any loss, damage or liability resulting from such use. None of the Loan Market Association, Allen-Overy or Clifford Chance has considered the laws of a jurisdiction that may apply to any of the parties to an agreement using these materials and its purpose. Members should therefore consider all relevant legal, accounting and regulatory issues before using these materials or entering into a transaction in connection with these materials and, if necessary, consulting with their professional advisors. About Slaughter and May Slaughter and May is a leading international law firm, known as a consultant to corporate treasurers in its domestic and international banking activities. The guide is published by the ACT and Slaughter and May and has been sponsored and produced by Slaughter and May (www.slaughterandmay.com). This guide is intended to provide an introduction to the facilities of thieves and their treatment in the documentation of the LMA facilities, as well as guidance on common operating scenarios. However, the general format of the leverage agreement will be known to users of investment grades, and some of the “Boilerplate” provisions are essentially identical. A number of these common provisions are explained in detail from the borrower`s perspective in our existing ACT guide to LMA documentation for borrowers (the ACT Borrower`s Guide to the Investment Grade Documents, available under www.treasurers.org/loandocumentation/investmentgrade). The relevant sections are referenced in the text of this manual. The purpose of this document is to provide guidelines for syndicated lending and debt financing transactions, including the types of facilities typically seen in the credit market, parties to a typical loan contract, and common methods used by lenders to transfer equity to loans.

The objective of this guide is to provide an overview of the role of the secondary market in the syndicated credit market and to identify, among other things, active participants in the secondary credit market, available debt securities, the typical anatomy of a trading and the various transfer mechanisms. We have published a note entitled “Documentary implications of the end of the Brexit transition period for LMA facility Documentation” which consolidated and updated previous Brexit notes published in September 2016 and April 2019, as well as two EU legislative benchmarks. A strong, liquid secondary credit market is an important part of the health of the syndicated credit market as a whole. In this context, this guide aims to assist market participants and their advisors involved in the emergence and execution of syndicated credits in the primary market, highlighting certain issues that may affect liquidity in the secondary market.