Senior secured debt/notes/bonds meaning

Gol Linhas Aereas Inteligentes SA (Gol Linhas) Gol Linhas Aereas Inteligentes SA (Gol Linhas) announced it has reached an ‘agreement in principle’ with an ad hoc cohort of senior noteholders covering exit financing and their backing for its Chapter 11 plan, set for a confirmation hearing later this month before a New York bankruptcy judge. The debtor initially unveiled its Chapter 11 plan in December, stating it had secured an accord with creditors, major investor Abra Group Ltd, and other stakeholders to eliminate US$2.5bn of outstanding debt obligations. Through a mix of refinancing transactions, debt-for-equity swaps, and broader balance-sheet restructuring measures, the airline intends to dispose of about US$1.7bn in prepetition funded debt and up to US$850m in total in other liabilities...

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...

Loan market and developments Activity in Finland’s corporate lending space has been broadly consistent over the past decade. That said, 2019 proved more animated, with a sustained rise in corporate loan values and a widening in the overall size of the market. Market sentiment is generally regarded as borrower‑friendly... Financing structures once mainly tied to English law documentation—such as SSRCF+senior notes deals—have been adopted with growing frequency in transactions governed by Finnish law. Proportionally, the most active areas have been industrial, scientific and technical sectors, together with real estate finance... Finland’s bond market was brisk in 2018, registering a 29% uplift in total value compared with the previous year. Nevertheless, the overall rate of expansion in the bond markets is easing... Regarding forthcoming matters that may affect the loan markets, an electronic register for housing...

Development of the Loan Market Association (LMA) documentation The initiative to create the LMA’s investment grade suite started in 1998, driven by market calls for a uniform syndicated facility agreement. The project emerged in response to market demand for a standardised syndicated facility agreement. Development of the LMA’s leveraged materials followed a comparable path: an initial facility agreement for leveraged acquisition finance transactions was released in 2004, with the recommended Intercreditor Agreement for leveraged acquisition finance (senior and mezzanine) issued in 2009. Since then, the LMA has continued to issue further precedents to reflect demand and changes in the market. There are now standard forms available for deals involving senior secured notes. In addition, there are forms for structures that feature both senior secured notes and high yield notes, recognising the significant volume of transactions financed in part or in full through high yield debt. The purpose behind both sets of LMA standard forms is to save time and cost by offering a position that reflects prevailing market practice...

This Deed is entered into on [ insert day and month ] 20[ insert year ] Parties [ insert name of party ] of [ insert address ] (the Senior Lender ); [ Insert name of party ] of [ insert address ] (the Junior Lender ); [ insert name of party ], a company incorporated in [ England and Wales ] under number [ insert registered number ] with its registered office at [ insert registered office ] (the Subordinated Lender ); [ insert name of party ], a company incorporated in [ England and Wales ] under number [ insert registered number ] with its registered office at [ insert registered office ] (the Borrower ). Recitals: (A) The Senior Lender has consented to make available to the Borrower a loan facility on and subject to the terms of the Senior Facility Agreement (as defined below). (B) The Junior Lender has consented to make available to...