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| A loan from a number of different lenders acting together. | | A potential cost saving or revenue improvement, expected to result from the combination of one or more previously separate business activities. |
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| The lenders form a syndicate and the borrower borrows from the syndicate.
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| 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.
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| 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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| Three types of syndicated loan deal are:
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| # An [[underwritten deal]]
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| # A [[best-efforts deal]]
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| # A [[club deal]]
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| == See also ==
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| * [[Agent bank]]
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| * [[Arrangement fee]]
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| * [[Bilateral]]
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| * [[Foreign bond]]
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| * [[Lead bank]]
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| * [[Loan Market Association]]
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| * [[Tranche]]
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| ===Other links===
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| * [http://www.treasurers.org/loandocumentation Commentary] by The [[Association of Corporate Treasurers]] on syndicated loan negotiation and documentation
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| [[Category:Long_term_funding]]
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Revision as of 15:01, 6 April 2013
A potential cost saving or revenue improvement, expected to result from the combination of one or more previously separate business activities.
