Bridge loan meaning

In general, a borrower seeking external funding usually has two main avenues available: securing a loan, or issuing debt securities on the debt capital markets For the purposes of this Checklist, our focus here is on lending products alone. For further detail on loan categories and structures, see Practice Note: Overdrafts, term loans and revolving credit facilities. For information on debt securities, consult the Practice Notes: Debt capital market finance versus loan finance and Key features of the debt capital markets. Overdrafts The reason for borrowing is central to selecting the most appropriate loan type and choosing the lender. Where the borrower needs swift, flexible, short term financing to support temporary cash flow management needs (for example, to bridge timing gaps between supplier payments and customer receipts), an overdraft is typically the most suitable option in such circumstances...

In this issue: Banking & Finance case round-up Acquisition finance Sustainable finance Real estate finance Sanctions Daily and weekly news alerts Useful information Banking & Finance case round-up Banking & Finance—August and September 2025 case round-up. For an outline of the cases we have flagged in Banking & Finance during August and September 2025, see News Analysis: Banking & Finance—August and September 2025 case round-up. Acquisition finance AFME issues European high yield and leveraged loan report for Q2 2025. The Association for Financial Markets in Europe (AFME) has released its European High Yield and Leveraged Loan Report for Q2 2025, offering an overview of issuance patterns and credit performance across the high yield and leveraged loan markets. See: LNB News 26/09/2025 35. Source: AFME Q2 2025 European High Yield and Leveraged Loan Report. Sustainable finance GFI and Climate Bonds unveil the Global Property Linked Finance Initiative. The Green Finance Institute (GFI) and the...

This glossary sets out many of the expressions commonly used in the leveraged finance market. Words appearing in the definitions in bold are defined elsewhere in this glossary. For further banking terminology, please refer to the main Banking & Finance Glossary... Acquisition finance glossary—A Acceleration Acceleration is the formal action taken by the agent, on the instructions of the majority lenders, following an event of default, such as making a demand for early repayment of the loan. See Practice Note: Accelerating a loan for more information... Accordion feature/accordion facility An accordion, also called an incremental debt feature, is a mechanism in the facilities agreement that, provided specified conditions are satisfied (for example, pro forma compliance with a leverage test), permits those lenders under the facilities agreement who wish to do so to advance additional debt. The terms for that extra debt are typically captured in an increase notice. This accordion or incremental debt flexibility is different from structural adjustment, which usually requires the majority consent...

This Practice Note outlines the usual features of a mezzanine facility and identifies the principal amendments required to convert a senior facilities agreement into a mezzanine facility agreement in an acquisition finance context. For a primer on acquisition and leveraged finance, see Practice Note: Introductory guide to acquisition finance, and for definitions of commonly used terms, see: Glossary of acquisition finance terms and jargon. For the role of mezzanine facilities in real estate finance, see Practice Note: Senior loans, mezzanine loans and intercreditor arrangements in real estate finance. What is mezzanine debt? The mezzanine facility is a layer of funding that sits behind the senior facilities in priority. It is sometimes deployed in leveraged finance transactions: to bridge any gap in the purchase price once the senior facilities and equity investment (and any other funding) are taken into account, and to reach lenders who favour mezzanine, which offers higher risk and potential higher returns, rather than senior debt Mezzanine funding is...

ARCHIVED: This Practice Note has been archived and is not maintained Silicon Valley Bank concentrated on providing finance to businesses—particularly early‑stage firms—in the technology and life sciences fields. Escalating concerns about the bank’s resilience triggered the withdrawal of tens of billions in deposits by customers, prompting regulatory intervention on Friday 10 March 2023 in the largest failure of a US bank since 2008. UK authorities took corresponding action. This Practice Note highlights the key matters arising from the collapse, including context, effects on deposits, lending arrangements and derivative positions, and implications for stablecoins and cryptoassets. It also signposts general resources on the legal issues surrounding bank stability. What has happened in the US? On 10 March 2023, California financial regulators seized Silicon Valley Bank, California (SVBUS) citing inadequate liquidity and insolvency, appointing the Federal Deposit Insurance Corporation (FDIC) as receiver. On 12 March 2023, the Federal Reserve, the FDIC and the Treasury Department released a joint statement confirming the FDIC’s resolution of SVBUS in a manner that...