Representing Co-Lenders in Syndicated Credit Facilities

Consent Rights, Sacred Rights, Waterfall and Pro-Rata Sharing Provisions, Removal and Addition of Co-Lenders

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


Conducted on Thursday, March 4, 2021

Recorded event now available

or call 1-800-926-7926
Course Materials

This CLE course will examine syndicated loans from the co-lender's perspective. The panel will discuss deal points of particular concern to co-lenders, including trends in negative covenants and collateral leakage, voting rights, waterfall and pro-rata sharing provisions, intercreditor arrangements and regulatory concerns for banks and other regulated entities.

Description

In most syndicated loan transactions, the loan agreement, collateral documents, and ancillary documents are negotiated with the borrower by the agent bank and as a result, co-lenders may have limited time to review and make material changes to the loan documents prior to closing.

Loan features of particular importance to co-lenders include waterfall and pro-rata sharing provisions and how those provisions operate under pre- and post-default scenarios. Co-lenders also will focus carefully on the voting rights among the lenders--what actions under the loan documents require the consent of 100% of the lenders, required lenders’ consent only, or a lesser standard. Intercreditor arrangements, whether split-lien intercreditors, second lien intercreditors, or unitranches, also will be of special concern to co-lenders.

Listen as our authoritative panel discusses the key concerns of co-lenders in a syndicated credit facility.

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Outline

  1. Negative Covenants: The role of precedent; sponsor-friendly provisions; collateral leakage concerns
  2. Voting Rights: Key issues and trends in recent cases
  3. Waterfall and pro-rata sharing provisions
  4. Intercreditor arrangements
  5. Regulatory and compliance concerns for co-lenders
  6. Special issues for letter of credit issuers

Benefits

The panel will review these and other vital questions:

  • What loan provisions might be considered deal breakers for a co-lender looking to invest in a syndicated credit?
  • How can a lender with a minority position in a syndicated loan be adversely affected if the loan goes into default or bankruptcy?
  • How might waterfall and pro-rata sharing provisions adversely affect the co-lender?

Faculty

Patricia (Pat) Christ
Patricia (Pat) Christ
Assistant General Counsel, Senior Vice President
Bank of America

Ms. Christ is Assistant General Counsel, Senior Vice President at Bank of America, NA.

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Noland, Bobbi
Bobbi Acord Noland

Partner
Parker Hudson Rainer & Dobbs

As head of the Commercial Finance practice, Ms. Noland guides global banks, regional banks and finance companies...  |  Read More

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