The provision of a term sheet to prospective participants in a syndicated loan transaction is a well-established and key component of the primary syndication phase of any deal. However, a lack of consistency with respect to content, and sufficiency of content, negatively impacts an investor's ability to appropriately analyse risk at a key stage of the investment decision process. The LMA and the ELFA joined forces with the investor community, and specialist review providers, to identify a list of provisions that are of material importance to investors' investment decisions, which are now set out in this Best Practice Guide.
The LMA publishes new and updated documentation in respect of LIBOR transition and active transition mechanisms
On 23 November 2020, we published the following documents to further assist market participants when including active transition mechanisms in their loan documentation for LIBOR transition: Revised exposure draft rate switch facility agreement (lookback without observation shift); new exposure draft rate switch facility agreement (lookback with observation shift); revised commentary relating to rate switch facility agreements; term sheet for rate switch facility agreements; and RFR terms for use with supplement to revised replacement of screen rate language.
On 18 November 2020, we published a note entitled "Documentary implications of the end of the Brexit transition period for LMA facility Documentation" ("Brexit Note") which consolidates and updates the earlier Brexit notes published in September 2016 and April 2019, as well as two EU legislative references destination tables. The Brexit Note and destination tables are intended to provide participants in the syndicated loan market with prior notice of the changes that will be made by the LMA to its English law facility documentation to take account of the end of the Brexit transition period.
On 21 October 2020, we published a note (the "pre-cessation note") highlighting considerations relating to inclusion, in the LMA's Revised Replacement of Screen Rate Clause, of a specific pre-cessation trigger relating to a benchmark rate no longer being representative.
New guidance documents released highlighting potential applications of the GLP in the real estate context
The LMA has recently become aware of unauthorised activity on an archived copy of its website, which it is in the process of investigating. We understand that names and email addresses of members have been accessed, but not passwords which were protected by encryption, or any other personal data.
As a precautionary measure, we would advise that members change their LMA password and passwords on any sites where they use the same password as for their members' LMA log-in.
Read more to learn how to change your password.
LMA publishes three Brexit-related notes
LMA publishes note on Revised Replacement of Screen Rate Clause and pre-cessation trigger
LMA publishes an exposure draft multicurrency rate
switch facility agreement
LMA publishes a revised version of the German law Facility Agreement for Real Estate Finance Multiproperty Investment Transactions and Supplemental Users Guide
LMA publishes a revised version of the German law Investment Grade Facilities Agreement and Supplemental Users Guide
LMA responds to UK HM Revenue & Customs consultation and the accompanying draft guidance on taxation impacts arising from the withdrawal of LIBOR
LMA publishes note on revised replacement of screen rate clause containing additional supplement
LMA responds to European Commission Consultation on the Renewed Sustainable Finance Strategy
Note on Coronavirus Large Business Interruption Loan Scheme (CLBILS) and Intercreditor Considerations
DAC6 and LMA recommended forms of facility documentation
During this current crises, a key area where we are changing the way we deliver our services is, naturally, our events and training programme.
Since April we have produced a substantial number of webinars and virtual events/panel discussions. All this content can be viewed on demand on "LMA Player", our new video and audio recording hub. We also delivered our LMA Syndicated Loans Conference virtually for the first time in September.
As part of the co-operation between the LMA, LSTA, APLMA and also ICMA, each of their forms of bail-in clause refer to a common EU Bail-In Legislation Schedule, which has been prepared by the LMA, in order to describe the relevant national implementation legislation and write-down and conversion powers.
Loan Market Insight