Depending on the syndication strategy, lead arrangers identify and decide on which banks to invite to participate, the tiers according to commitment ("ticket"), decide on titles according to tier, set fees for each tier and decide on each underwriter’s final hold. MLAs typically discuss and agree this with the management group.
Lead arrangers originate the financing and manage its syndication. The management groups generally perform the functions of deal structuring and facility distribution. The members of the management group co-underwrite facilities before bookrunning starts and the market demand for the loan can be gauged.
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Structuring involves structuring (designing) and negotiating the financing facility with the borrower by the lead arrangers, commonly together with other members of the syndicate group, and setting tiers according to commitment amounts. Distribution involves identifying the banks to invite to participate and the marketing of the financing to those banks. The terms or deals structured for the borrowers have to reflect terms that are acceptable and marketable (distributable) to potential syndicate participants and lenders.