Syndicated loan: Difference between revisions
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imported>Doug Williamson (Update.) |
imported>Doug Williamson (Differentiate from bilateral loans.) |
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# A [[best-efforts deal]] | # A [[best-efforts deal]] | ||
# A [[club deal]] | # A [[club deal]] | ||
Loans which are not syndicated are known as bilateral loans. | |||
Revision as of 22:40, 4 June 2018
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
- Arrangement fee
- Bilateral
- Foreign bond
- Lead bank
- Loan Market Association
- Tranche
- An introduction to loan finance
Other links
- Commentary by The Association of Corporate Treasurers on syndicated loan negotiation and documentation
