An entity that offers to acquire control of another company (target company) by paying cash, shares and/or debt instruments for the acquiree.[...] A corporate transaction in which one company (acquirer) obtains control (usually more than 50% of the voting rights) of another company (target compan[...] Any company that becomes a “Borrower” subsequent to the execution of the facility agreement.[...] An “Additional Borrower” or an “Additional Guarantor”.[...] The amount of credit extended to a borrower in a single drawing, the term generally being used in loan documentation to identify the different portion[...] A parent or a subsidiary of the parent, which are presented together as one entity in the consolidated financial statements of the parent company.[...] The bank or other financial institution that is responsible for administering a syndicate facility and acting as a conduit for all payments over the t[...] The amount of a facility assigned to each participant lender upon the close of general syndication, marking the final step in syndication.[...] The date on which participant lenders are notified of allocations, in a manner determined by bookrunner(s), and the syndication closing timetable is c[...] The three senior secured term loans – “Facility A”, “Facility B” and “Facility C” – anticipated in LMA template leveraged agreements, [...] A change or revision, usually to the wording of a written document, where loan agreement call for either majority or unanimous lender consent.[...] A fee-based service provided by banks, including cash management, payment and collection services, risk-management services, foreign exchange and M&A [...] A separate facility in a structured financing that provides additional financing or hedging, including an overdraft facility, a guarantee, bonding, do[...] A lender or affiliate of the lender that makes an ancillary facility available to the borrower on a bilateral basis, out of the lender's revolving com[...] An upfront fee paid by a borrower to lead arrangers for originating the financing, structuring the syndicate and distributing the financing facility, [...] 1. An underwriter of a finance transaction, acting alone or as co-underwriter.
2. A largely ceremonial title awarded to a syndicate's participant len[...] The group of commercial or investment banks that comes together in the primary syndication and commits to provide the funds required by the borrower.[...] A trade association active in the in the Asia Pacific region with the stated mission to increase liquidity, efficiency and transparency in the primary[...] Any right or physical object that provides an entity with probable future economic benefit (value) expressed in terms of money that has been obtained [...] The LMA term used for the assignment of rent where property is located in Scotland.[...] 1. [US] The transfer of the rights and obligations of the assignor/seller under a credit agreement, such that the assignee/buyer comes into privity of[...] The document used to assign and transfer an LMA facility.[...] LSTA documentation generally used for assignments, generally attached to each credit agreement.[...] LMA distressed documentation that involves an LMA Trade Confirmation, an Assignment Agreement and a Pricing Letter.[...] LSTA distressed documentation involves a Purchase and Sale Agreement (PSA), an Assignment and Acceptance Agreement (A&A) and a Purchase Price Letter.[...]
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The amount of financing (total commitment) that lenders are obligated to make available for borrower drawdown during the facility's availability perio[...] Either a depository financial institution, such as a commercial bank, savings and loan association or credit union, or nondepository financial institu[...] 1. The meeting held by lead arrangers with co-underwriters and commonly required for large financings where questions about the deal, tiers (tickets) [...] 1. The currency in a multicurrency facility agreement in which a financing agreement is denominated.2. The first currency quoted in an exchange rate ([...] The reference market rate (e.g., LIBOR or EURIBOR) used by lenders for calculating the interest cost they incur in obtaining funding in the required a[...] A financial model used in acquisition and project finance, including the written business plan and cashflow projections, upon which the prospective le[...] A financing arrangement by which the arranging bank agrees to use its “best efforts” or “commercially reasonable efforts” to market and place [...] A bank bidding strategy without fear of losing, if a deal appears less favorable for the bank but it wants to protect its reputation with the client; [...] An aggressive bank bidding strategy with the objective to win the lead mandate, if a deal appears potentially attractive.[...] Referring to a transaction between only two parties.[...] Credit or a term loan provided by a single lender to a borrower, as opposed to a multilateral facility, suitable for the funding requirements that can[...] The process by which arrangers solicit subscriptions (tickets) and revise terms to ensure successful syndication.[...] A syndicate lead arranger that manages the syndication process, determines the loan pricing, tiers and titles (brackets) offered, allocation to each l[...] The issuing of invitations to prospective lenders, communicating information to the banks, informing the borrower and the management group of daily pr[...] 1. The party (individual or organization) that receives funds and bears the direct repayment obligation to repay those funds, as specified in a financ[...] The borrower and any guarantor, as used in LSTA documentation.[...] The percentage amount of credit that can be extended against eligible collateral, such that it does not exceed the discounted value that lenders can e[...] The first available secondary market price after syndication closing and the deal is completed, reported in percentage points of par.[...] 1. Interim financing that covers a financing gap, commonly the period between the maturity of a loan and its replacement with other financing, typical[...] Describing the syndicate when lenders are free to trade their loans in the secondary market without restriction, which occurs after the loan is closed[...]Back to Top ↑C The reduction of the whole or any part of a lender's commitment by the borrower, which applies first to the prepayment of drawn term loans.[...] A special exception in loan agreements for disapplying a provision, it being used primarily to exclude specific subsidiaries from being captured by th[...] The repayment of a maturing loan under a revolving credit facility with the proceeds of a rollover loan without the use of cash, which is usual for re[...] Typically 4-6 months from facility signing by the mandated arrangers, during which lead arrangers must provide certain funding to the borrower in orde[...] The finance facility provision obliging lead arrangers to provide certain funding to the borrower in order to complete the cash element of an acquisit[...] The ... requiring the bidder for a target company in a UK public takeover to prove that it has “certain funds” available to complete the acquisiti[...] A self-contained concept within a written contract that can be read and acted on its own, it possibly having a number of subclauses or referencing oth[...] A provision found in the mandate letter or commitment letter in which the borrower undertakes that neither the borrower nor any borrower group company[...] A market flex structured such that only specified changes are allowed, such as a margin flex or structure flex.[...] When all the conditions precedent (CPs) to a finance agreement are satisfied by all obligors, as of when all lenders are obligated (committed) to make[...] The defined in a loan agreement as the first date after the borrower satisfies the conditions precedent, which is the date of completion of an acquisi[...] Compensation received by participant lenders in general syndication from underwriters and paid on final allocations for lender due diligence and credi[...] A financing arrangement by which a group ("syndicate") of banks underwrites the full amount of a multilateral loan at the outset of the transaction wi[...] A largely ceremonial title awarded to participant lenders for tickets in order of decreasing size usually during general syndication for relatively la[...] A syndicate title for a co-underwriter during the sub-underwriting phase of primary syndication, in exchange for a corresponding portion of the underw[...] A designation used for a participant lender as junior member in general syndication that takes the smallest ticket available.[...] A lead arranger, joint lead arranger or sub-underwriter who together underwriter the total commitments in a loan syndication.[...] The analysis of the ability of collateral to support a loan and the collateral proceeds to satisfy any remaining loan obligations.[...] The value of the collateral underlying the loan relative to the size of the loan, including the ratio of senior secured loan to junior debt in the cap[...] The cash arising from disposition of collateral and the rights and certain claims against the collateral, first against expenses resulting from the co[...] A depository financial institution (banks) that accepts deposits of money from the public for the purpose of making business, personal and mortgage lo[...] A detailed review of a target company's commercial status, focused on the market position of the company’s products and/or services.[...] Any land or building used for commercial purposes, generally encompassing any real property other than a single-family residence or a residential lot,[...] The financing of income-producing property that is to be built, to refinance and restructure existing real estate financing, or to acquire distressed [...] The financing that a lender commits to make to a borrower, commonly in some form of confirmation (commitment letter or letter of intent), in which the[...] The date set by bookrunners for commitments from lenders/investors, subject to legal documentation review, which must be evidenced in writing by eithe[...] A per annum fee set as a spread over an interbank rate paid by borrowers to lenders on the undrawn (unused) portion of a credit facility on a pro rata[...] A document in which a prospective lender commits to an arranger to provide a specified amount of a facility’s total commitment in the primary syndic[...] The collective term for the commitment letter, fee letter and, if applicable, engagement letter, together with the related annexes, schedules and/or e[...] In commitment letters, the period of time that lenders have committed to make loans available to the borrower.[...] Security held for the benefit of all lenders, generally by a common security agent/trustee, with all secured creditors having equal claim on the same [...] Any business entity, typically incorporated. 2. [LMA] (cap) The borrower in LMA investment grade facility documents. 3. [LMA] (cap) The subsidiary of [...] A parent and its subsidiary companies, which are all the companies presented in the consolidated financial statements of a parent company.[...] The completion of an acquisition in accordance with the acquisition agreement in LMA-style leveraged acquisition finance documentation.[...] A type of deferred consideration to the vendor for the sale of the target company in a leveraged acquisition finance transaction the final amount of c[...] Together, the confidentiality letter and the front running letter accepted by prospective lenders and investors in order to participate in the primary[...] A document in which a prospective lender or investor undertakes to treat confidentially any information provided to the mandated lead arranger (MLA) b[...] A person that enters into a contractual agreement.[...] An arrangement where senior and junior loans are made to the same borrower (common debtor) but the senior creditor and junior creditor agree by contra[...] The upfront fees paid to lead arrangers plus the interest margin paid on the loan.[...] A promise in an agreement to do certain things or to refrain from doing other things.[...] Financial metrics that measure a company’s ability to service its debt and used to assess default risk, such as (EBITDA to interest, EBITDA to debt [...] A document prepared by counsel to the lenders that confirms delivery of specified legal documents in satisfaction of certain mechanical closing condit[...] An agreement to make money available and an off-balance sheet item of the lender, it becoming a loan once drawn down.[...] Any process used for assessing the credit quality of a counterparty (borrower, customer) through the analytical study of financial statements and othe[...] The decision process that lenders undertake when evaluating a request for credit, it involving preliminary approval and the analysis of the credit’s[...] The basic due diligence performed on a prospective or current borrower.[...] The premium for a credit default swap in the form of periodic payments, usually quarterly, a protection buyer makes to a protection seller, expressed [...] An analytical method that models the credit default process based on available information used to determine the probability of default on a credit ar[...] An independent company that evaluates and quantifies the credit risk of banks, nonbank corporations and local and national entities as well as their p[...] An independent company that evaluates and quantifies the credit risk of banks, nonbank corporations and local and national entities as well as their p[...] The possibility (risk) of financial loss of a creditor (lender, lessor, supplier) arising from the failure of a debtor (borrower, lessee, customer) to[...] The management of the overall credit risk of a financial institution consistent with its risk appetite, policies and business objectives, it covering [...] Financial metrics, such as leverage ratio, interest coverage and collateral coverage.[...]Back to Top ↑D The arranging and distribution of a multilateral financing facility to more than one lender who commit to provide the financing directly to the borrow[...] The identification of banks and investors to invite to sub-underwrite the financing in primary syndication and/or to lend to the borrower in general[...] The process of passing finance down the corporate structure of a company group, commonly in acquisition finance from a sponsor to the parent company a[...] An increase in an underwriting spread.[...] A term loan with an extended availability period of two to three years and longer, during which it can be drawn down, generally for capital expenditur[...] The borrower’s making use of a financing facility, it being an advance from the borrower’s perspective.[...] A detailed assessment of a party's overall economic and financial position (e.g., creditworthiness, the risk involved in the transaction, and suitabil[...] 1. Any due diligence report. 2. A legal due diligence report prepared for and provided in an acquisition finance transaction.[...]Back to Top ↑E A type of deferred consideration to the vendor for the sale of the target company in a leveraged acquisition finance transaction making payment contin[...] A detailed review of the environmental conditions and health and safety issues of a target company or real estate for potential risk of environmental [...] Intra-group funding in acquisition finance provided by the equity sponsor/investors to the parent company of the acquiring company evidenced by loan n[...] An event specified in a financing agreement provision which, if it occurs, entitles the lender, lessor or other creditor to exercise its default right[...] The amount of a credit exposure that a creditor can expect to lose in the event of default on a credit exposure equal to the exposure less the value o[...] The amount of financial risk that a creditor (bank, leasing company) is exposed to at the moment the debtor goes into default equal to the unamortized[...]Back to Top ↑