Structuring Multi-Lender Syndicated Loan Agreements

Crafting Provisions Covering Defaulting Lenders, Amend and Extend, and Pro Rata/Sharing to Address Lender and Borrower Objectives and Risks

Recording of a 90-minute CLE webinar with Q&A

Conducted on Wednesday, July 24, 2013

Recorded event now available

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Program Materials

This CLE webinar will provide practitioners with an analysis of issues that arise in multi-lender syndicated loan agreements. The panel will outline how to draft clauses to protect all parties to the agreement and bolster the enforceability of provisions in the face of a lender default or insolvency.

Description

As the syndicated loan market improves, loan provisions are evolving to address problems that arose in recent years. One trend is for borrowers to negotiate amend-and-extend provisions to give flexibility to extend existing loans while lenders are still receptive.

Syndicated lender defaults during the financial crisis heightened scrutiny on defaulting lender provisions. The 2011 LSTA’s Model Credit Agreement revised those provisions by clarifying definitions, including a defaulting lender, consequences of being a defaulting lender, and obligations of remaining lenders.

While the pro-rata/sharing principle is conceptually simple, counsel must carefully approach crafting and enforcing the provisions due to the complexity and host of legal issues that emanate from pro-rata sharing.

Listen as our authoritative panel of finance attorneys discusses the drafting of several critical provisions of syndicated loan agreements.

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Outline

  1. Overview of current conditions in syndicated loan market
  2. Defaulting lender provisions
  3. Amend-and-extend facilities
  4. Pro rata/sharing provisions

Benefits

The panel will review these and other key questions:

  • How can counsel to parties best craft loan provisions that facilitate approval for amend-and-extend provisions in the face of loan terms requiring pro-rata repayment treatment?
  • How do the defaulting lender provisions of the LSTA’s Model Credit Agreement clarify the definition of defaulting lender and the consequences for a defaulting lender?
  • What are the various objectives of sharing clauses and what issues should counsel anticipate when drafting pro rata/sharing provisions?

Following the speaker presentations, you'll have an opportunity to get answers to your specific questions during the interactive Q&A.

Faculty

Marissa C. Wesely
Marissa C. Wesely
Partner
Simpson Thacher & Bartlett

She specializes in domestic and international bank finance transactions, with an emphasis on leveraged acquisition...  |  Read More

Angela L. Fontana
Angela L. Fontana
Partner
Weil Gotshal & Manges

Her practice consists primarily of financing transactions and debt restructurings for both borrowers and financial...  |  Read More

Ann S. Makich
Ann S. Makich
Partner
Cahill Gordon & Reindel

Her practice is principally focused on leveraged financings for acquisitions, recapitalizations and going-private...  |  Read More

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