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>Doug Williamson (Layout.) |
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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'. | ||
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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. | 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 | Non-bank lenders are particularly attracted to fully drawn, often fixed rate tranches of a loan rather than revolving or stand-by tranches. | ||
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# An [[underwritten deal]] | # An [[underwritten deal]] | ||
# | # A [[best-efforts deal]] | ||
# A [[club deal]] | # A [[club deal]] | ||
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==Other links== | ===Other links=== | ||
[http://www.treasurers.org/ | * [http://www.treasurers.org/loandocumentation Commentary] by The [[Association of Corporate Treasurers]] on syndicated loan negotiation and documentation | ||
[[Category:Long_term_funding]] | [[Category:Long_term_funding]] | ||
Revision as of 09:20, 11 May 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
