Hedging documents meaning

Acquisition finance transactions In an acquisition finance transaction, beyond the debt—whether constituted by loans or bonds—needed to finance the deal, the borrower group will commonly require additional banking facilities. These might include, for example, an overdraft, a stand-by letter of credit facility or a foreign exchange facility, and can frequently all be delivered under the umbrella of a revolving credit facility (RCF) in the senior facilities agreement (SFA). The RCF will usually be capable of being drawn in three distinct ways: in cash (by way of revolving loans) as syndicated, non-cash facilities, eg letters of credit—these will be identified in the documentation; and in the form of bilateral lines known as ancillary facilities Unlike a revolving credit facility drawn in cash, ancillary facilities are not typically of a kind that lends itself to division amongst several lenders, so the documentation caters for their provision on a bilateral basis. For more on the revolving credit facility, in particular how revolving loans...

This Practice Note This Practice Note examines the principal matters that may arise when engaging with a local authority in England in a commercial finance transaction in practice. It outlines the kinds of steps a local authority might take in a standard commercial funding arrangement and assesses the capacity and authority of local authorities when undertaking those steps. It also reviews common representations and warranties provided by local authorities and other authority-specific points to address when dealing with a local authority in a commercial finance transaction, including their power to invest and Wednesbury unreasonableness as well. Note that this Practice Note deals with commercial finance supplied to local authorities. It does not address other funding sources, such as grants available to local authorities, which fall outside the scope of this Practice Note. It also does not extend to local authorities in Wales. The main questions that arise when dealing with a local authority in the context of a commercial finance transaction concern the capacity of a local authority to...

Project documents This Practice Note offers an overview of several widely used agreements and papers in a PFI/PF2 scheme, though the precise suite adopted will turn on the particular project. In the 2018 Budget (delivered on 29 October 2018), the government stated that PF2 will not be used for new schemes (see News Analysis: Budget 2018—what does it mean for infrastructure and housebuilding?). That said, existing PFI and PF2 arrangements will remain in operation and, given the usual term of such projects, are expected to continue for many years... Project Agreement This is the core contract in any PFI arrangement. It records the full set of terms and conditions governing the relationship between the Authority and Project Co/SPV for the life of the project. Where Project Co/SPV is granted a concession (ie the exclusive right to supply/operate/exploit something to create third party revenue), the Project Agreement may be described as a concession agreement. Typically a substantial document, it is often divided into multiple sections for manageability. Under...