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Soft call meaning

What does Soft call mean?
Soft call protection describes terms in loan or bond documentation that allow early repayment or redemption but require a prepayment premium to be paid to lenders or noteholders. It is a market expression, not a concept defined by statute or case law, and is used consistently across England and Wales, Scotland, Northern Ireland and Ireland. In leveraged and LMA-based loans (including term loan B), soft call protection typically applies for the first 6–12 months after closing. A common formulation is a 1% premium on the amount prepaid where the borrower voluntarily prepays or refinances to reduce pricing. It usually does not apply to mandatory prepayments (for example, asset sale or insurance proceeds), tax or illegality prepayments, or other agreed carve-outs. In high-yield bonds, soft call is used to describe call protection under which the issuer may redeem before maturity, usually after an initial non-call period, but only at specified prices above par that step down over time. During a hard-call or non-call period, redemption is generally prohibited except via a make-whole. Soft call provisions protect investor economics against opportunistic repricing while preserving borrower flexibility, and the premium operates as a contractual prepayment fee rather than a prohibition on early repayment.
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NEWS
UK and EU environmental law weekly: consultations, policy and case updates across climate, hydrogen, buildings, enforcement, nuclear, ESG, chemicals (PFAS), biodiversity, waste and water—9 October 2025

In this issue: Air emissions and climate change Contamination and pollution Energy efficiency and buildings Energy for environmental lawyers Environmental information Environmental taxes, reliefs and incentives ESG and sustainability Hazardous substances and chemicals Nature, biodiversity and habitat conservation Waste Water, flooding and drainage Daily and weekly news alerts New and updated content Air emissions and climate change Greenhouse Gas Removals (GGR)-UK government publishes Business Model documentation On 27 August 2025, the Department for Energy Security and Net Zero (DESNZ) released a suite of papers on its proposed Greenhouse Gas Removals (GGR) Business Model and accompanying policy. The Lexis+ Energy team, working with Navraj Singh Ghaleigh, Senior Lecturer in Climate Law at the University of Edinburgh Law School, set out the context for the GGR Business Model; its relationship with the Power BECCS Business Model; the technologies the GGR framework intends to encompass; its legal footing and principal features; and how...

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NEWS
UK Private Client update, 30 October 2025: deed of variation delivery; Court of Protection best interests; IHT reform; agency PAYE; HMRC manuals; ICO soft opt-in; pensions; international

In this issue: Trusts Court of Protection UK taxes for Private Client Budgets and Finance Bills HMRC Manuals updates Charity and philanthropy Pensions, insurance and tax efficient investments International Question of the week Additional Private Client updates this week Daily and weekly news alerts LexTalk®Private Client: a Lexis+® community New and updated content Dates for your diary Trackers Latest Q&As Useful information Trusts Delivery of deed of variation requires objective evidence of intention to be bound (Canarapen v Gauchenot) The Chancery Division confirmed that a deed of variation had been effectively delivered and was binding, clarifying that delivery is proved by objective indicators of an intention to be bound rather than any subjective preconditions, and that later remorse or supposed misunderstandings about future events do not vitiate a valid deed. The claimant nephew sought a declaration that a deed transferring his aunt’s one‑third interest in a...

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NEWS
Budget 2025: UK tax reforms across corporate, personal, VAT, stamp and international regimes—key measures, anti-avoidance, administration and practical implications for lawyers

On 26 November 2025, Rachel Reeves, the Chancellor of the Exchequer, presented the Labour administration’s second Budget, widely referred to simply as Budget 2025. On the same day, the Office for Budget Responsibility (OBR) set out its economic and fiscal outlook for the UK. Proceedings opened poorly, and chaotically, with an OBR forecast leaking amidst a slew of prior government-led briefings and the release of a frustratingly static index of ‘Budget 2025 tax related documents’ to which hyperlinks were not inserted until close to 8pm, together with a piecemeal, stop‑start publication of tax information across scattered web pages, sending readers on a fruitless treasure hunt for clarity or coherence and with no appearance whatsoever of the Overview of Tax Legislation and Rates (OOTLAR). Headline measures comprised, among other items, extending, for another three years to April 2031, the existing personal allowance and income tax bands for taxpayers, and increasing income tax rates applied to property, savings and dividend receipts, as well as imposing employer and employee National Insurance contributions (NICs)...

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PRACTICE NOTES
The Human Element in Legal Negotiations: Understanding Styles, Managing Emotions, and Handling Unfair Tactics

When stepping into any negotiation, whether it’s a multimillion-pound deal or sorting the office coffee rota, there are two primary elements to weigh: the negotiation’s structure and stages, and the human aspect, ie emotions and negotiation style. This Practice Note focuses on the latter. See Practice Note: The structure of a negotiation for guidance on the former. The human element of negotiations When faced with a negotiation, we often experience mixed feelings, eg fear, excitement and anxiety, shaped by how past discussions have played out. A negotiation is not solely about process—a skilled negotiator also considers the other party’s style and natural tendencies, adapting their tactics in response. There is no single perfect negotiator, as different situations call for different strengths. Nonetheless, successful negotiators commonly display the following traits: Patient — They accept they may not secure everything in one sitting. Creative — They keep searching for alternative ways to meet everyone’s requirements. Flexible — They adjust to shifts in the market and...

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PRACTICE NOTES
Assertiveness for Lawyers: Managing Conflict, Handling Difficult Behaviours, Using Transactional Analysis and the Drama Triangle, Giving Feedback, Disagreeing Constructively, and Saying No

Why do some people push your buttons? Practice Note: Improving your assertiveness draws on Eric Berne’s Transactional Analysis—see Improving your assertiveness—What drives your behaviour?. This Practice Note develops that approach to clarify why certain people or contexts press your buttons. If someone throws a tantrum or slips into a sulk, they are generally showing very childlike behaviour, and it is often described in those terms. Childlike responses can evoke a Parent stance, leading us to try to take charge or to mollify the other person. It can also be the case that, in some encounters, childlike behaviour prompts a Child reply, complete with protests such as ‘but they started it’. The hallmark of Child mode is an avoidance of taking responsibility for your own actions. Likewise, acting in a highly parental way can call forth a childlike reaction. Put bluntly, treat people as children and they will, in all likelihood, act as children. This explains why over-controlling managers frequently encounter rebellion in their teams, while over-supportive managers can end...

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PRACTICE NOTES
Gaining Buy-in and Influencing Effectively in Legal Practice: Personal versus Positional Power, Ethical Boundaries, Boardroom Strategy, Avoiding ‘Yes’ People, and Interviewing for Influence

Our capacity to sway others is something we call upon every day. It might be a small ask—such as requesting a different meeting time—or a bigger challenge—like persuading the board to invest in new technology. This Practice Note sets out the essentials of influencing, explores personal and positional power, clarifies the boundary between influence and manipulation, shows how to build sway in the boardroom, and clearly pinpoints influencing capabilities during the interview process. The fundamentals of influencing others Connecting with those around you Influence is about working with people, not doing things to them. It is ‘doing with’, not ‘doing to’. It isn’t about forcing your views; it is about bringing others around to your perspective. To make that happen, you need to understand and connect with them, and articulate your vision in a way that truly resonates with them. Being trustworthy Trust is immensely valuable and has to be earned. Build a reputation as someone who keeps their word. If you say you will...

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PRECEDENTS
Precedent: DMAIC worked example for in-house legal teams to streamline contract drafting, improve document storage and communication, and reduce internal call volumes

This Precedent sets out a practical illustration involving a fictional in-house legal team seeking to refine its contract drafting workflow. Applying the Define, Measure, Analyse, Improve, Control (DMAIC) efficiency framework, several remedies have been surfaced, notably simplifying the workflow and reassessing document storage so internal clients need not ring administrative assistants to chase information, reducing delays and queries. This case study concentrates on putting that discrete change into practice and making it stick. The emphasis is on clarity and access to information within the drafting cycle. Stage: Questions/considerations • Case study scenario responses 1. Create a sense of urgency How will staff recognise the necessity for change? How will they grasp its significance? How will immediate and longer-term gains be made visible across the department? Communications should be clear and specific. Set out clearly: how the current contract drafting approach is straining budgets the effect the process is having now, and is expected to have, on supplier relationships in future how...

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PRECEDENTS
In-house legal business case: streamlining supplier contract drafting and reducing procurement call volumes (worked example)

Executive summary This report examines why 25% of incoming calls originate from the procurement team, either posing questions or passing on updates and information to the team. Conducted across August and September 2024, the study incorporates statistical data gathered and assembled from a range of various sources. A cross-party cohort of lawyers and support staff, headed up by Fred Smith, undertook the work. Its objective was to locate present bottlenecks within the process, determine their root causes, and outline how they might be resolved. The aim was to identify current bottlenecks, their causes, and remedies. The principal recommendations are: enhance communication throughout the contract drafting process define what constitutes a conflict of interest and explain why it matters publish an online infographic of the contract drafting process as a clear and consistent point of reference tighten compliance protocols for how information is stored on collaborative systems Comprehensive details of these recommendations are set out below. If the proposals are accepted,...

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