You snooze you lose meaning

This Practice Note offers a primer on the standard provisions you would expect in a straightforward facilities agreement used in leveraged acquisition finance. It outlines the likely funding sources for leveraged acquisitions, then highlights the principal respects in which a typical leveraged facilities agreement departs from a standard investment‑grade facilities agreement. It then walks through each section of a conventional senior leveraged finance facilities agreement. For an introductory guide to acquisition finance, see Practice Note: Introductory guide to acquisition finance, and for a glossary of commonly used terms and jargon, see the Glossary of acquisition finance terms and jargon. Sources of finance for leveraged acquisitions—impact on documentation Senior facilities represent just one of several potential funding routes for leveraged acquisitions; this section briefly surveys the available options. Acquisition finance transactions are typically structured with a blend of debt and equity. The debt element may comprise high yield or senior notes, loans, or a combination. Where loans fund all or part of the transaction, multiple loan facilities can be...

This glossary sets out numerous expressions regularly encountered in the restructuring & insolvency sphere. Words shown in bold within definitions are themselves explained in other entries in this glossary as well. A Article X The MLIJ contains a single provision named Article X, aimed at jurisdictions that have already implemented the MLCBI, like England, or are weighing its adoption. Article X states: ‘Not withstanding any prior interpretation to the contrary, the relief available under [insert a cross-reference to the legislation of this State enacting Article 21 of the UNCITRAL Model Law on Cross-Border Insolvency] includes recognition and enforcement of a judgment’ (see Practice Note: UNCITRAL model law on recognition and enforcement of insolvency-related judgments (MLIJ): Article X). Asset-backed security (ABS) A form of security anchored by asset pools, for example loans, leases, and credit card receivables. Assimilated law From 1 January 2024, ‘retained law’ has been retitled ‘assimilated law’. The body of domestic law originally arising from EU obligations, created by the European...

Banking & Finance glossary A Auditing and Accounting Organisation for Islamic Financial Institutions (AAOIFI) The foremost Islamic, international, autonomous, independent, not-for-profit corporate body that develops and issues accounting, auditing, governance, ethics and Shari’ah benchmarks and standards for Islamic Financial Institutions (IFIs) and the wider Islamic finance sector. Founded in Bahrain in 1991, it is backed by a number of institutional members across more than 45 countries, including central banks and regulatory authorities, financial institutions, accounting and auditing practices, and legal firms. Its pronouncements are currently applied by leading Islamic financial institutions across the world and have advanced a progressive and gradual harmonisation of global Islamic finance practice. It also delivers professional qualification programmes—notably Certified Islamic Professional Accountant (CIPA), Certified Shari’ah Adviser and Auditor (CSAA), and the corporate compliance programme—in efforts to strengthen the industry’s human capital and governance frameworks. For further details, see Practice Note: Key participants in the Islamic finance industry—Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI). Acceleration Acceleration is the formal action...