European Leveraged Finance Customer Alert Series
Leveraged loan agreements form key facets of money structures, balancing loan provider security against enabling the debtor to perform its company based on its business strategy. In recent years, the length of such loan agreements has increased significantly, and White & Case investigates the causes behind this.
To offer some context, think about the after. The present LMA-form senior multicurrency term and revolving facilities contract for leveraged purchase finance deals (senior/mezzanine) (excluding footnotes) is 314 pages very very long. A sample leveraged loan agreement is 205 pages very very long whereas an example equivalent is 473 pages very long. This extremely summary that is brief exactly just exactly how in market examples (and as time passes), the size of loan agreements has increased considerably. This is often related to a true quantity of reasons, a number of that are talked about below.
Practical experience, evolution and flexibility
Before concentrating on certain areas, while there might be many and varied reasons for longer documents we might claim that the main reasons are: (i) the effect of working experience, (ii) freedom (or most frequently a mixture of (i) and (ii)) and (iii), the development of documents. Continue Reading