Syndicated loan: Difference between revisions
From ACT Wiki
Jump to navigationJump to search
imported>Doug Williamson (Added link to Treasurer's Handbook) |
imported>Doug Williamson (Add links.) |
||
| (3 intermediate revisions by the same user not shown) | |||
| Line 6: | Line 6: | ||
Historically the lenders were normally banks, acting through an 'agent bank'. | Historically the lenders were normally banks, acting through an 'agent bank'. | ||
The syndicated loan market also now includes some 'non-bank' lenders, notably hedge funds or pension funds, which will also be lending parties in 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. | Non-bank lenders are particularly attracted to fully drawn, often fixed rate tranches of a loan rather than revolving or stand-by tranches. | ||
| Line 16: | Line 16: | ||
# A [[best-efforts deal]] | # A [[best-efforts deal]] | ||
# A [[club deal]] | # A [[club deal]] | ||
Loans which are not syndicated are known as bilateral loans. | |||
== See also == | == See also == | ||
* [[Agent bank]] | * [[Agent bank]] | ||
* [[An introduction to loan finance]] | |||
* [[Arrangement fee]] | * [[Arrangement fee]] | ||
* [[Best-efforts deal]] | |||
* [[Bilateral]] | * [[Bilateral]] | ||
* [[Club deal]] | |||
* [[Foreign bond]] | * [[Foreign bond]] | ||
* [[Lead bank]] | * [[Lead bank]] | ||
* [[Loan Market Association]] | * [[Loan Market Association]] | ||
* [[Tranche]] | * [[Tranche]] | ||
* [[ | * [[Underwritten deal]] | ||
Latest revision as of 21:06, 23 September 2021
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'.
The syndicated loan market also now includes some 'non-bank' lenders, notably hedge funds or pension funds, which will also be lending parties in 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:
Loans which are not syndicated are known as bilateral loans.
See also
- Agent bank
- An introduction to loan finance
- Arrangement fee
- Best-efforts deal
- Bilateral
- Club deal
- Foreign bond
- Lead bank
- Loan Market Association
- Tranche
- Underwritten deal
Other links
- Commentary by The Association of Corporate Treasurers on syndicated loan negotiation and documentation
