Super security meaning

In this issue: Sustainable finance and ESG round–up Spring Budget 2024 Banking and finance case round-up UK and international sanctions Economic Crime and Corporate Transparency Act 2023 LIBOR and benchmarks Security Guarantees Sustainable finance Derivatives Regulation for derivatives lawyers Structured products and securitisation Restructuring Daily and weekly news alerts New and updated content Useful information Sustainable finance and ESG round–up Sustainable finance and ESG weekly round–up: for this week’s digest of developments, see Sustainable finance and ESG weekly round-up—7 March 2024. Spring Budget 2024—key Banking & Finance announcements On 6 March 2024, the Chancellor of the Exchequer, the Rt Hon Jeremy Hunt MP, outlined a series of steps of note for banking & finance lawyers. These include extending the Recovery Loan Scheme—now the Growth Guarantee Scheme—until the end of March 2026; consulting on the UK implementation of the Organisation for Economic Co-operation and Development Cryptoasset Reporting...

Brexit highlights The UN Aarhus Convention Compliance Committee has released draft conclusions that the UK breached Articles 3 and 8 during the development of the European Union (Withdrawal) Bill, following a 2017 Friends of the Earth complaint. Required consultation timeframes were not met The draft Bill was not made available for public scrutiny Opportunities for public feedback were not provided If adopted by Convention member states in November 2025, these findings would be binding in international law and require the UK to introduce legislative changes to guarantee effective public participation in future environmental law-making. The government may choose to act on the recommendations ahead of the November 2025 meeting. See: LNB News 25/07/2025 10...

In this issue: Brexit headlines Brexit SIs Post-Brexit transition guidance Constitutional and administrative law Equality and human rights Judicial review Public Procurement Information law State accountability and liability State security and intelligence Other public law news Daily and weekly news alerts New and updated content Free webinars Dates for your diary Trackers Useful information Brexit headlines Supreme Court confirms child element of Universal Credit is not a family benefit under EU co-ordination rules (Simkova v Secretary of State for Work and Pensions) The Supreme Court unanimously rejected an appeal brought by a Slovak national living in England, concerning entitlement to the child element of Universal Credit in circumstances where the claimant’s child lived outside the UK. It decided that the child element of universal credit (UC) does not constitute a ‘family benefit’ for the purposes of Article 3(1)(j) of Regulation (EC) No 883/2004 on the co-ordination...

Borrowers can choose from a broad range of debt and capital structuring routes. Traditionally, senior debt (typically provided by banks) sat at the top, then mezzanine finance, followed by junior debt, each ranking ahead of unsecured creditors and shareholders/equity holders. After the 2007/8 credit crunch, businesses increasingly tapped capital markets and non-bank sources (eg private credit) to widen their funding, adding further layers of indebtedness. This Practice Note offers a straightforward overview of the different tiers of debt and security a restructuring lawyer may encounter. It outlines the financing layers and the forms of security commonly seen in practice by a restructuring lawyer. It also sketches how those tiers now sit together in practice. Capital structures and interplay between creditors Typically, external borrowings sit at the operating company (Opco) level. The Opcos own the core business assets (eg premises, key manufacturing equipment and valuable intellectual property), produce most of the profits, and lenders seek security over those assets. In some arrangements, high-value items such as intellectual property or...

What are incremental facilities? An incremental facility is a provision in a credit agreement that, once certain pre-agreed conditions are met, gives a borrower the latitude to take on further, or enlarged, debt commitments. Those additional commitments will usually and ordinarily enjoy guarantees and security on the same footing as the existing facilities. Such arrangements are commonly nicknamed “accordion” facilities because the overall commitments under the credit agreement expand when incremental debt is raised. Typical deal structure—where/when are they used Flexibility for incremental debt is a familiar element of sponsor-backed transactions in both the large-cap and mid-cap space. The Loan Market Association’s leveraged finance form of loan agreement (the LMA Credit Document) now provides optional drafting to include this feature within the form. In mid-cap deals, the expectation is generally confined to pari passu ranking senior term incremental facilities, which also sit alongside the incumbent senior term lines. An exception is seen in certain unitranche super-senior mid-cap structures, which also permit additional super-senior term debt. In large-cap...

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...