Super Senior Multicurrency Revolving Facility Agreement

Consider the following to provide context. The LMA`s current agreement for loan-financed transactions (excluding footnotes) is 314 pages. A 2010 contract for leveraged loans is 205 pages long, while an example of the equivalent for 2020 is 473 pages. This very brief summary shows how the duration of loan contracts has increased considerably in the context of market examples (and over time). This is due to a number of reasons, some of which are discussed below. Cross-border transactions include a complex analysis of legal issues related to the provision of credit support and/or guarantees by subsidiaries in a wide range of jurisdictions. These may sometimes require a particular language to preserve the legality of a guarantee which, if not, may, among other things, be (i) under local law, or (ii) expose the administration of the surety to criminal or civil proceedings in the relevant jurisdiction. This guarantee language can range from one or two paragraphs (usually more general) to several pages in. B jurisdictions where, in order to calculate liability under the current guarantee, a solvency check and/or a sufficient wealth formula can be applied. In the case of cross-border transactions in which several jurisdictions are involved, the loan contract can be extended significantly as soon as the corresponding language is inserted for each jurisdiction. In fact, it`s too early to say how “great” LMA Super Senior documents are. The structure is still relatively new, so it seems certain that practices and documents will evolve. However, anything that can be a documentary starting point saves time and money for all parties involved.

At least it should ensure that creditors (and their lawyers) spend time negotiating issues of real economic importance rather than containing clauses. The company is the borrower under the hys super senior facility agreement as well as issuing the senior secured notes. On November 12, 2014, the LMA published four documents under the “Leveraged/High Yield” category and completed the Super Senior Rehabilitation Agreement and the Super Senior Intercreditor Agreement (and associated user manuals) for loan-financed transactions with priority guaranteed bonds and a super senior refinancing device. The construction clause facilitates the interpretation of certain conditions and provisions of the loan agreement. For example, it may specify that all references to London Time to avoid clarification in a document or that a reference to a given “person” contains its successors in the title. However, as loan contracts have become more complex, the construction clause has expanded considerably to include a large number of additional clarifications and/or interpretive provisions that cover issues such as. B consider as “debts” the amounts pending under different instruments (i.e..