Syndicated loan: Difference between revisions
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A loan from a number of different lenders acting | A loan from a number of different lenders acting together. | ||
The lenders form a syndicate and the borrower borrows from the syndicate | |||
Historically the lenders were normally banks, acting through an 'agent bank'. | Historically the lenders were normally banks, acting through an 'agent bank'. | ||
Revision as of 08:49, 19 April 2015
A loan from a number of different lenders acting together.
The lenders form a syndicate and the borrower borrows from the syndicate
Historically the lenders were normally banks, acting through an 'agent bank'.
More recently some 'non-banks', notably hedge funds or pension funds, will also be parties to syndicated loans – in the primary market for sub-investment grade and, in the secondary market more widely too.
Non-bank lenders are particularly attracted to fully drawn, often fixed rate tranches of a loan rather than revolving or stand-by tranches.
Three types of syndicated loan deal are:
See also
Other links
- Commentary by The Association of Corporate Treasurers on syndicated loan negotiation and documentation
