Facility agent meaning

This Checklist This Checklist outlines key considerations for lawyers (external or in-house) acting for the lender(s) when responding to a borrower led amendment request. It concentrates on permanent amendments rather than one off waiver or consent requests. For guidance on those, see Practice Note: Waivers and consents. In a syndicated transaction, the borrower will ordinarily deliver a written amendment request to the facility agent, which typically includes: the rationale for seeking the amendment, the specific clauses impacted, the applicable consent thresholds, and any snooze and lose provisions. The Loan Market Association (LMA) has published a helpful guide to the amendment process on a syndicated transaction. On a bilateral deal, a borrower’s amendment request to the lender may take a less formal form. This Checklist also references provisions in the Loan Market Association investment grade multicurrency term and revolving facilities agreement incorporating backward-looking compounded rates and forward-looking term rates (the LMA Investment Grade Facility Agreement) and Precedent: Facility...

The Executors of KDL Beresford v HMRC [2024] UKFTT 952 (TC) The deceased, B, held shares in F Ltd, which in turn wholly owned N Ltd. N Ltd owned a six‑storey office building situated in London. Two storeys were let on commercial leases, while the remaining four were run as serviced offices, administered for the company by an agent. At any given time, approximately 42 individual offices in total were in occupation, usually by between seven and 20 separate firms. Clients entered into 12‑month office agreements including a break clause and were required to pay two separate fees. The first, the 'facility fee', related to the office space and a set of standard services, such as utilities, cleaning, telephone answering and reception services, together with access to kitchens and sanitary facilities...

This Practice Note looks at Term Loan B (TLB) facilities, which often feature as a senior tranche within syndicated loans in leveraged financings. TLBs are long-established in the US market and are increasingly seen in the European lending market for institutional investors. It examines the structure of a typical TLB and how it diverges from traditional European leveraged loans, before setting out the key features. This Practice Note assumes some understanding of leveraged finance. For introductory information, see: Introductory guide to acquisition finance. For explanations of common terms, see Practice Note: Glossary of acquisition finance terms and jargon. What is a Term Loan B? In lending markets, ‘Term Loan B’ or ‘TLB’ (short for Term Loan Bullet) describes a tranche of senior secured credit facilities made available to a borrower and intended to be syndicated in the institutional loan market. They are usually floating-rate term facilities with an actual or implied non-investment grade rating, a five to seven year maturity and either nominal amortisation of 1% per annum...

This How to guide sets the groundwork for drafting and negotiating a security document. It links to helpful precedents and highlights key drafting and negotiation points. Practice Note: Introductory guide to security in a lending transaction gives a fuller overview of taking and perfecting security, covering types of security, perfection and priority. Practice Note: Debenture drafting and negotiation guide provides detailed guidance on drafting and negotiating a debenture. Parties The parties to a security document in a bilateral transaction will be: the security provider(s)—eg the borrower(s) under the facility agreement or a third party, such as group company guarantors or a parent company, or both; and the lender The parties to a security document in a syndicated transaction will be: the security provider(s)—the borrower(s) under the facility agreement or a third party, such as the group company guarantors or a parent company, or both; and the security agent, acting as trustee and security agent for the lenders...

Timing This stage often coincides with the period in loan transactions when the finance documents are being prepared and negotiated (see Practice Note: Finance documents phase in loan transactions). Once lawyers begin drafting the facility agreement, a schedule of conditions precedent that the borrower must deliver to the lender (or the facility agent in a syndicated transaction) before it can sign the facility agreement and/or draw down funds under it will start to crystallise. As part of transaction management, the lender’s lawyers will typically produce a checklist of the conditions precedent (the CP checklist) to track the status of each relevant condition precedent, circulating it to all parties for review while the finance documents are being negotiated. The borrower, or the borrower’s lawyers, will then provide the various conditions precedent documents to the lender or the lender’s lawyers for review. Depending on the nature of the condition precedent document, some may call for negotiation. It is also essential that the borrower’s lawyers keep themselves fully up to date with...

date [ date ] Parties [ name of Managing Agent ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] ( Managing Agent ) [ name of Funder ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] ( Funder ) [ name of Borrower ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] ( Borrower ) Background The Borrower has engaged the Managing Agent to manage the Property pursuant to the Principal Management Agreement. Under the Facility Agreement, a facility has been provided to the Borrower. The Managing Agent has consented to enter into this Agreement. ...

To be printed on the headed paper of the arranger [ s ] [ insert date ] To: [ insert full name and address of borrower ] Dear [ insert full name of borrower ] 1 We refer to the facilities agreement dated [ insert date of facilities agreement ] among [ insert full name of the borrower ] as the Borrower, [ the subsidiaries of the Borrower listed in [ insert Schedule containing borrowers' details ] as Original Borrowers ], [ the subsidiaries of the Borrower listed in [ insert Schedule containing guarantors' details ] as Original Guarantors ], the financial institutions set out in [ insert Schedule containing lenders’ details ] as Original Lenders, [ insert full name of arranger [ s ] ] as the Arranger, and [ insert full name of facility agent ] as the Agent, ...

[ To be printed on the headed paper of the agent/security agent ] [ insert date ] To: [ insert full name and address of [ parent ] ] Dear [ insert full name of parent ] 1 We refer to the facilities agreement dated [ insert date of facility agreement ] made between: [ insert full name of the parent ] in its capacity as the Parent; the Parent’s subsidiaries named in [ insert Schedule containing borrowers' details ] as the Original Borrowers; the Parent’s subsidiaries identified in [ insert Schedule containing guarantors' details ] as the Original Guarantors; the financial institutions set out in [ insert Schedule containing lenders details ] as the Original Lenders; [ insert full name of arranger [ s ] ] as the Arranger; [ insert full name of facility agent ] as the Agent; [ insert full name of security agent [ s ] ] as the Security Agent; ...