Slaughter And May Facility Agreement

Terms of the Credit Contract: Lessons learned when things go wrong and things to watch out for when things are going well, at the American Bar Association on August 6, 2011 Adam Maerov Stephanie Robinson Presentation The LMA Leveraged Facilities Agreement has become a benchmark in the UK and international credit markets for documenting syndicated loans to non-investment credit credits. Banks and borrowers use all or part of them on a number of transactions that can be financed by borrowing or related to acquisitions or refer to them. The publication of the borrower`s first guide to this form of agreement is therefore an important development in assisting borrowers of all kinds, both in the United Kingdom and elsewhere, in the processing of credit documents. 11 User Manual: The user manual contains general information about the leverage agreement and the accepted transaction structure. It also contains some texts explaining selected clauses. Concept Sheet: The leveraged concept sheet is based on the provisions of the leverage agreement and therefore requires modification and adaptation. It is a traditional enumeration sign sheet. In recent years, more and more very detailed word sheets have been used, with most of the keyword negotiations taking place at the appointment sheet stage. As a result, the leveraged terminology sheet is not widely used.

Most private equity sponsors have their own long and long model form terms sheets to ensure that transactions can be documented quickly, while guaranteeing a number of conditions for borrowers. The request for certain funding of funds (see Part II, point 4.5 (uses during the period) below) resulted in some concept sheets being expressed as fundingable if the full documentation of the form is not agreed before the funding date (as a general rule, all terms not included in the reference sheet are expressed in accordance with the LMA model FORMULAR documents or with the sponsor`s precedent). The use of intermediate contracts in auction procedures and for public offerings has also been widespread in the pre-credit terminal market. Intermediate contracts are shorter loan contracts, attached to the letter of commitment and schedule, that provide greater resource security. Lenders agree to finance under the interim loan agreement if no full documentation is agreed before the planned financing date. As a general rule, it is expected that lenders will not be required to obtain funds under the interim credit contract, but that they will be replaced by complete documents before being financed. If the full form documentation is not agreed on time and the credits are advanced on the basis of the interim agreement, they should normally be repaid within a short period of time. Financial pacts and user manuals: Historically, the LMA has opposed the publication of financing agreements that rely too much on credit and the sector concerned. This remains the case for many investment-level and asset-based financing transactions. However, the types of financial agreements and related definitions in leverage facility agreements have become increasingly predictable, which is why, in October 2006, the LMA published the provisions relating to the financial agreement on subsidies that will be used in conjunction with the Leverage Facility Agreement and a corresponding use manual.

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