Introductory Guides to Loans

The LMA has produced two guides to assist those readers who are not familiar with the structures and terminology of syndicated loan and leveraged facilities. It should be noted that the guides are not intended to provide detailed explanations of the provisions of LMA Recommended Documents.

The two guides created by the LMA are:

• Guide to Syndicated Loans
• Guide to Syndicated Leveraged Finance

The purpose of the Guide to Syndicated Loans is to provide an explanation of various aspects of a syndicated loan transaction, focusing on the following:

the types of borrowing facilities commonly seen in a syndicated loan agreement;

1. a description of the parties to a syndicated loan agreement and an explanation of their role;
2. a brief explanation of the documentation entered into by the parties;
3. the time line for a typical syndicated loan transaction; and
4. a description of the common methods used by lenders to transfer syndicated loan participations.

The purpose of the Guide to Syndicated Leveraged Finance is to provide an explanation of various aspects of a leveraged finance transaction, focusing on the following:

1. the types of structures and borrowing facilities commonly seen in a senior syndicated leveraged finance agreement;
2. a description of the parties to the finance agreements and an explanation of their roles and legal positioning within the debt structure;
3. a brief explanation of the documentation entered into by the parties;
4. the time line for a typical syndicated leveraged finance transaction; and
5. a brief description of transfer arrangements in a senior syndicated leveraged finance transaction.