Syndicated loan: Difference between revisions
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imported>Doug Williamson (Expand to address three types of deal and link to those three pages. Source: LMA Guide to Syndicated Loans and Leveraged Finance Transactions Oct 2013 page 5) |
imported>John Grout (To refer to ACT commentaries on loan documentation) |
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| Line 19: | Line 19: | ||
* [[Arrangement fee]] | * [[Arrangement fee]] | ||
* [[Bilateral]] | * [[Bilateral]] | ||
* [http://www.treasurers.org/loandocumentation Commentary] by The [[Association of Corporate Treasurers]] on syndicated loan negotiation and documentation | |||
* [[Foreign bond]] | * [[Foreign bond]] | ||
* [[Loan Market Association]] | * [[Loan Market Association]] | ||
* [[Tranche]] | * [[Tranche]] | ||
[[Category:Long_term_funding]] | [[Category:Long_term_funding]] | ||
Revision as of 11:40, 15 November 2014
A loan from a number of different lenders acting collectively.
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 rather than revolving or stand-by tranches.
Three types of syndicated loan deal are:
See also
- Agent bank
- Arrangement fee
- Bilateral
- Commentary by The Association of Corporate Treasurers on syndicated loan negotiation and documentation
- Foreign bond
- Loan Market Association
- Tranche
