Finance Deals & Syndicated Lending · glossary
A mandated lead arranger, or MLA, is a bank the borrower appoints by a mandate letter to put a syndicated loan together. It agrees the main terms, prepares the information for lenders and finds the other banks. It usually lends as well. Once the loan is signed, its arranging work ends and the agent runs the loan.
The bank the borrower hires, by a mandate letter, to agree the terms and gather the lenders. Its work comes before signing. Afterwards it keeps its fee and is liable only for gross negligence or wilful misconduct. Clause 22.4 · Chapter 2
Explained in Chapter 2, Who's Who in a Syndicated Loan, of Finance Deals & Syndicated Lending.
Two roles hold the group together. The arranger agrees the terms with the borrower and gathers the lenders. The agent runs the loan after signing, passing money and notices between the borrower and the banks, so Atlas deals with one bank instead of three. On Sunrise, Pellhaven is both arranger and agent.Read Chapter 1, What Debt Finance Is →
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It plans the loan, agrees the term sheet with the borrower and invites other banks to join. It is paid an arrangement fee, set in a private fee letter. Several banks can share the role, often called joint lead arrangers.
The arranger named first, on the left, in the deal's announcements. It usually runs the syndication and earns the largest share of the fees. The other arrangers are listed to its right.
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