Jurisdiction(s):
United Kingdom

ISDA documentation for loan hedging: checklist covering term sheet, negotiation, signing/completion, security/intercreditor terms, clearing, regulatory compliance (EMIR/UK EMIR/Dodd-Frank), tax, capacity, authorisations and cross-border issues

Published by a LexisNexis Banking & Finance expert

Checklists

This checklist outlines the principal ISDA documentary points that should be considered during a financing transaction.

Term sheet stage

If acting for a borrower and specialist hedging advisers are engaged, obtain their input on the term sheet.
If acting for a borrower, confirm the total pricing of the deal is clear (covering both the loan and the hedge). A borrower may pick a lender for a low loan margin, only to find that the swap credit spread from the same lender renders the overall economics less appealing than those from another lender.
Are the loan and hedging set on an IBOR basis (eg EURIBOR) or on a risk free rate (eg SONIA or SOFR)?
Does the lender require a zero floor in its loan? If acting for a borrower, ensure the borrower understands the consequences of any mismatch between this and the hedging documentation.

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Ruth Marken

CMS

Ruth is a Partner in the Finance Group at CMS. She previously worked at Slaughter & May in London and Paris.Ruth advises on the full range of financing transactions, with expertise in acting for corporate and fund clients in the real estate and TMT sectors. She has a particular focus on complex structured transactions including derivatives.Ruth has been described in The Legal 500 directory as "outstanding".Some of Ruth's key transactions include advising a music publishing business on the securitisation of its receivables generated by music catalogues, a transaction which required a deep understanding of the music publishing business and its cashflows; advising an international television production group on its acquisition and production facilities; and advising a leading global manufacturer of IT products on taking security over international intellectual property....

Chris Clark

CMS

Chris is a partner within, and head of, the Capital Markets and Derivatives team at CMS UK and has a broad range of experience in advising leading investment banks, corporates and other financial institutions on a wide range of OTC derivatives, debt capital markets transactions, structured products linked to a range of asset classes and structured finance transactions. Chris specialises in derivative securities and advises on, amongst other things, the drafting and structuring of proprietary indices including advising on regulatory considerations in respect thereof (including, without limitation, the EU Benchmarks Regulation) and the drafting of structured products or transactions referencing such indices/strategies. Chris also regularly assists clients in the negotiation of a wide range of master agreements (ISDA, GMRA, GMSLA) and bespoke structured transactions entered into in connection with such agreements. In addition, Chris advises both issuers and dealers on the issue and...

Yasmin Hook

CMS

Yasmin is an associate in the Corporate and Leveraged Finance team within the CMS Finance Practice Group. Yasmin specialises in corporate finance including, TMT finance, acquisition and real estate finance, corporate and platform lending. Yasmin regularly assists a broad range of clients from major UK and international banks, international specialist lenders, leading corporates, SME’s, founders and private clients with their ongoing finance activities (both Borrower and Lender side). Yasmin also has a corporate background including experience acting for UHNWI’s, board members, shareholders and alternative finance providers....

Web page updated on 20/05/2026

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