Novation as used under English law is the transfer of the rights and obligations of a financing agreement in which the lenders’ commitment to advance funds still exists by discharg...
What is leveraged acquisition finance?
Leveraged finance is funding provided to a borrower that has a non-investment (speculative) grade rating, generally in the form of structured finance arranged in several facilities...
The lead arrangers may go directly into a single-stage general syndication, rather than a two-stage syndication with sub-underwriting. General syndication is the “retail” phase in...
What is firm-commitment underwriting?
In firm-commitment underwriting, one or more arrangers commit to provide to a borrower the total amount of a multilateral financing and then organize and syndicate the financing, r...
After mandates are awarded, mandated arrangers commit themselves to assemble a syndicate to arrange financing on the borrowers’ behalf, subject to satisfactory due diligence and do...
What is due diligence in loan syndication?
Due diligence is a detailed assessment of the borrower’s overall economic and financial position (e.g., the borrower’s creditworthiness, the risk involved in the loan and the suita...
What is due diligence in acquisition finance?
Acquisition financing provided on a certain funds basis is not subject to due diligence because the conditions precedent (CPs) to the initial drawdown ("initial utilisation") canno...
Credit risk is the possibility of financial loss of a creditor (lender, lessor) arising from the failure of a debtor (e.g., borrower, lessee) to meet its financial obligation to pa...
What is CRE pre-completion financing?
An acquisition, development and construction loan is financing for the development of commercial real estate that is made available during a project’s construction phase, it allowi...
What is CRE post-development financing?
Long-term real estate financing commonly with a maturity of 30 years and longer is permanent financing, used to refinance construction or bridge loans on properties that have reach...
