Yankee loans meaning

A Yankee loan is a cross‑border loan raised by a non‑US borrower (commonly a UK, Irish or wider European group) but marketed and syndicated to US institutional loan investors. It is typically documented in a US‑style credit agreement governed by New York law and arranged by US bookrunners. In practice this often takes the form of a US dollar “term loan B” with covenant‑lite, incurrence‑based covenants and LSTA‑style provisions, though revolving or ancillary facilities may sit alongside on local (LMA‑style) terms. The term is market shorthand rather than a concept defined by legislation or case law, and its usage is consistent across England & Wales, Scotland, Northern Ireland and Ireland. Key features and considerations include: - New York law governing law and New York/US courts for disputes, with local recognition and enforcement issues to assess. - Security and guarantees typically taken under local law (English, Scots, Northern Irish or Irish) and dovetailed with a New York law intercreditor or security package. - US marketing and syndication practices, including flex, MFN protections and basket architecture. - Practical issues such as currency (USD) funding and hedging, tax withholding/FATCA, sanctions compliance and alignment between LSTA and LMA conventions. Yankee loans are common in leveraged buyouts...