Structuring Incremental Loan Facilities: Key Terms for Lenders and Borrowers
Conditions Precedent, Incremental Capacity, Most Favored Nation Provisions, "Sidecar" Debt
Recording of a 90-minute premium CLE webinar with Q&A
This CLE course will examine incremental loan facilities, including key loan terms such as incremental capacity, conditions precedent, most favored nation (MFN) provisions and incremental equivalent debt or “sidecar” agreements. The panel will look at issues from both lender and borrower perspectives.
Outline
- Current trends in incremental loan facilities
- Conditions precedent, prepayment of existing debt, closing conditions
- Incremental capacity, financial covenants and other key terms of incremental loans
- Most favored nation, sunset provisions and other exclusions
- Limited conditionality transactions
- Terms applicable to incremental loan facilities
- Incremental equivlent or “Sidecar” debt
Benefits
Our panel will examine incremental loan facilities, and we will review these and other key issues:
- Advantages and disadvantages for borrowers and lenders
- Key loan terms such as incremental capacity, conditions precedent, MFN provisions, incremental equivalent debt or “sidecar” agreements, sunsets and other exclusions
- Limited conditionality transactions
- Trends in the use of incremental facilities—both in large and mid-cap loans
- Perspectives from both lenders and borrowers, including typical provisions and agreements
Faculty

J. Christian Nahr
Partner
Fried Frank Harris Shriver & Jacobson
Mr. Nahr represents investment banks, private equity sponsors, hedge funds and corporations in a broad array of complex... | Read More
Mr. Nahr represents investment banks, private equity sponsors, hedge funds and corporations in a broad array of complex domestic and cross-border financing transactions. He has significant experience representing both borrowers and lenders in acquisition financings, leveraged buyouts, recapitalizations and restructurings. Mr. Nahr's practice includes advising on mezzanine financings, private placements, and syndicated secured loans, as well as fund-level financings for debt and equity funds.
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Michael J. Steinberg
Partner
Shearman & Sterling
Mr. Steinberg practices structured finance, corporate and bank finance law. He represents financial institutions, major... | Read More
Mr. Steinberg practices structured finance, corporate and bank finance law. He represents financial institutions, major corporations, investment funds and financial sponsors in various types of transactions involving leveraged acquisition financing, and also specialized finance structures, including securitization and asset-backed finance, as well as unsecured and secured bank financings generally, with experience in asset classes such as motion pictures, pharmaceuticals and aircraft.
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