• 21 May 2024
    LMA publishes recommended form of extension option and users guide

    On 21 May 2024, the LMA is pleased to have published a form of drafting of an extension option for users of the LMA's recommended forms of facility agreements for investment grade transactions. 

    The intention of the extension option is to provide a position that broadly reflects general market practice for an extension option in a syndicated facility to a corporate borrower with an investment grade credit rating.  As with all LMA recommended form documents, it is recognised that the negotiated terms of individual extension options can vary widely and the extension option seeks to provide a sensible starting point only.  The users guide sets out the basis on which the extension option is drafted, as well as highlighting in a non-exhaustive manner some of the negotiation points which may arise.

  • 09 May 2024
    LMA publishes South African law JIBAR rate switch agreement to assist with market transition to ZARONIA

    On 9 May 2024, we published further South African law documentation to assist the loan market in transitioning away from JIBAR to compounded ZARONIA. The Unsecured Single Currency Single Borrower Term and Revolving Facilities Agreement Incorporating Rate Switch Provisions (the “Exposure Draft SA Rate Switch Agreement”) provides for an in-built switch from JIBAR to a backward-looking compounded ZARONIA on the occurrence of specified trigger events.  It includes mechanics and provisions for transition which are intended to mitigate the risk of a further amendment being required.

  • 02 May 2024
    LMA publishes updated DAC6 guidance note

    On 2 May 2024, we published our updated guidance note in relation to the Directive on Administrative Cooperation (commonly known as "DAC6"). This follows a consultation on 28 March 2023 whereby the rules implementing DAC6 in the UK were repealed and replaced with The International Tax Enforcement (Disclosable Arrangements) Regulations 2023 (the "Regulations").

    The guidance note covers the applicability of both regimes.

  • 24 April 2024
    LMA publishes sustainability coordinator letter

    We are delighted to announce the publication of the LMA’s Sustainability Coordinator Letter (the SC Letter).

    The SC Letter is intended to provide a starting point for negotiation where a sustainability coordinator is to be appointed on a sustainable lending transaction. 

    The SC Letter is aligned with the Draft Provisions for Sustainability-Linked Loans published on 4 May 2023.

    Given that the sustainability coordinator role is continuing to develop, the SC Letter will be kept under review and updated periodically as required. 

    We would like to thank our dedicated working group and all members of our ESG Committee for their hard work on this project.

  • 18 April 2024
    LMA publishes guidance note on the Building Safety Act 2022

    Today, we published our guidance note on the Building Safety Act.

    The Building Safety Act 2022 (BSA), which came into force 1 April 2023, is primarily intended to improve the design, construction and management of higher-risk buildings in England and Wales in the wake of the Grenfell Tower fire in 2017. The BSA is the most wide-ranging and comprehensive legislative reform affecting the built environment in decades.

    Our new guidance note includes a number of key points for consideration for bank and non-bank lenders, and their advisors, when using the LMA’s template real estate finance facility documentation in circumstances where the BSA may apply.

    The guidance note was produced following a roundtable discussion involving a number of our members earlier this year.  We would like to thank everyone who attended the roundtable meeting and all our members who have supported this project.

  • 17 April 2024
    LMA issues Primary Delayed Settlement Compensation Guidelines to facilitate efficiency in the primary leveraged loan market

    Improving efficiency, particularly around settlement times, in the primary and secondary loan markets continues to be one of the key goals of the LMA and its members.

    Working with members of the Board from both the buy and sell side, the Board have approved a recommended timeline for settlement of primary leveraged loan syndication, incorporating fault based delayed settlement compensation. 

    The timeline seeks to address the delays occurring by providing a set of recommended timings for key steps in the syndication process and where the recommended settlement time is not met, the introduction of a fault based delayed settlement compensation mechanism. 

    The guidance looks to balance the competing interests of all stakeholders in the syndication process. The following key points should be noted:
     

    • the timeline is a statement of recommended best practice with a target of 10 business days, meaning that it requires settlement - namely the potential lender/buyer becoming lender of record - within 10 business days from the later of the allocation date and the funding date;
    • the compensation mechanism only applies to syndications where the facility agent, security agent, and underwriter are all part of the same group.


    The LMA will keep these guidelines under review to ensure operational effectiveness, market impact, consistency with best practices, and fulfilment of the objectives of promoting greater efficiency and reduced settlement times. 

    If appropriate and applicable, the LMA will look to extend to other areas of the loan market at a later stage. 

    The LMA will look to track certain key metrics and maintain the existence of the Board Working Group to look at the utilization and impact of the guidance. 

  • 08 April 2024
    LMA publishes updated RFR destination table

    The LMA is pleased to have published an updated version of its RFR destination table. The document has been revised in accordance with member feedback. As a result, it has been split into two destination tables: (i) A new table has been added which is divided by currency / RFR – this allows members to more easily locate the documents which are relevant for a particular currency / RFR; (ii) The existing table which is divided by sector to show the RFR equivalent (or most close equivalent) to a previously LIBOR-referencing LMA document. The updated destination tables are intended to make the LMA’s RFR documentation more easily accessible to members.  

  • 21 February 2024
    CDOR transition – Upcoming events being held by Bank of Canada / CARR

    With only 4 months to go until the cessation of CDOR, the LMA would like to invite members to two events being hosted by the Bank of Canada on the CDOR transition. 

    29 February, PwC/CARR live webinar on the CDOR transition (4:00pm GMT)
    This session will be focused on lending and hedging, as well as the transition away from the Bankers’ Acceptance market. For more information and to access the live event, please register with PwC at https://event.webcasts.com/starthere.jsp?ei=1653571&tp_key=3ea818391d. 

    12 March, CDOR will end in less than 4 months: How financial markets are adapting to CORRA (in-person event)
    The High Commission of Canada in the UK, in partnership with TMX and in collaboration with the CARR, will be hosting a panel discussion with industry experts including the CARR co-chairs, on the current transition from CDOR to CORRA. 
    Event details:  12 March 2024, 16:00 - 18:00 GMT, Canada House, Trafalgar Square, London SW1Y 5BJ
    To register, please send your RSVP to christiane.lavallee@tmx.com.  

  • 16 February 2024
    LMA publishes revised Schuldschein Loan Agreements (both German and English language)

    The LMA is pleased to announce publication of revised Schuldschein Loan Agreements in German and English language.

    As with the original versions, the revised LMA Schuldschein Loan Agreements are available in German and English language for both single borrower and single borrower with guarantor transaction structures. 

    The revisions have been considered and agreed by members of the original working party and reflect changes in law, feedback received from market participants since 2018, developments in relation to reference rate fall-back provisions and aligning the security over lenders’ rights clause to the relevant clause provided for in the German law precedent for syndicated facilities. 

  • 01 February 2024
    Strengthening EURIBOR fallbacks - LMA publishes updated Term €STR exposure draft and German law investment grade document

    We have been part of the Euro RFR Working Group and have worked with the Group on strengthening fallbacks to EURIBOR. 

    On 1 February 2024, we published an updated version of our term €STR fallback exposure draft and related commentary following market feedback. As feedback received was generally supportive of the exposure draft, there have been no major changes. However, given the lack of market practice in the use of term €STR fallbacks, the LMA has not yet moved this document to recommended form.  As a result, we need members to provide us with ongoing feedback from the provisions being used on transactions. 

    We have also updated the existing form of German law investment grade documentation to include a switch to compounded €STR upon a permanent cessation or non-representativeness of EURIBOR.