Module 1 · Chapter 2
Who's Who in a Syndicated Loan
A syndicated loan has many lenders but one agreement. This chapter shows who sits on each side, what each one does, and what the arranger and the agent refuse to answer for.
In this chapter
- Who sits on the borrowing side and who sits on the lending side
- What the arranger and the agent do, and what they refuse to answer for
- What the lawyers and the junior do to get the loan signed
2.1The two sides of a syndicated loan
A syndicated loan has two sides. On one side are the companies that owe the money: the borrower and the group companies that guarantee it. On the other side are the banks that lend, the bank that put the deal together and the bank that runs the loan after signing.
In the Sunrise loan, Atlas Payments Group plc can borrow up to €40m from three banks. One of them, Pellhaven Bank plc, built the deal and runs it as well as lending. The parties clause names them all.
Key point
Three banks lend, but Atlas deals with one of them, the agent. Every payment and every notice goes through the agent, and each bank still lends only its own share.
Also in this chapter
- The borrowing side: the borrower and its guarantors
- Why the lenders want guarantees from the subsidiaries
- The arranger builds the deal, then steps back
- The agent runs the loan and promises nothing more
- Each lender lends its own share
- The lawyers: who drafts, and what the legal opinion covers
- Your job
Preview
The rest of this chapter opens with a free account. Every edition is free to read until 31 January. Open a free account by the end of that day and keep every edition published by then, for good. Open it from the edition home →
The rest of this chapter is in the Library, at €12 a month or €79 for a Year Pass. See what the edition holds →