Loan Operations
The operational and settlement aspects in the syndication process are far-reaching and have a significant impact on the efficiency of the transaction process. We seek to bring about increased efficiencies and standardisation.
One way in which this challenge is faced is through our dedicated Committees, focused on Agency, Operations and Settlement. We also have a dedicated Junior Committee, tasked with bringing new ideas to the fore to help fast-forward change.
We encourage you to engage with the discussion.
Current Projects
Updates to the LMA Secondary Heatmap and Guidance
On 21 March 2024, the LMA released its updated Secondary Heatmap to reflect amendments made by a dedicated project group constituted of members of the European Loans Operations Committee.
The new Heatmap and Guidance Document include updates to:-
- the initiation of secondary trade settlement; and
- the guidance around parties reviewing transfer provisions prior to submission.
A copy of the updated Heatmap can be found here and a copy of the accompanying guidance document can be found here.
Publication of Updated LMA / LSTA Standard Administrative Details Form
On 2 March 2023, the LMA is delighted to announce the publication of the updated LMA / LSTA Standard Administrative Details Form, which now includes optionality for inputting Standard Settlement Instructions / Wiring Instructions for those transactions that align with the ISO20022 updates.
Updates to the LMA Loan Servicing Heatmap
On 26 January 2023, the LMA released its updated Loan Servicing Heatmap to account for changes requested by the LMA's European Loan Operations and Agency Committees.
The new Heatmap and Guidance Document include:-
- The inclusion of a timetabled period for the creation of deal sites in the Heatmap and principal guidance document;
- Updates to the timetable period for executing Billing/Invoicing and Late-payment under the Heatmap and Fee Guidelines; and
- Removal of trading standards in relation to loan trading (to be covered in separate update to the Secondary Heatmap).
A copy of the updated Heatmap can be found here and a copy of the accompanying guidance document can be found here.
LMA, in collaboration with Finastra, releases a series of articles looking at utililising digitisation in the loan market.
This article identifies the building blocks necessary to permit the change to digitisation - a change that has the potential to transform and grow the loan market.
This article examines how automation is not only critical to achieving workplace efficiency, but is also a necessary tool in attracting the digitally inclined Gen Z talent to the industry.
This article explores how a market standardard data set would enable an interoperable future where vendor platforms are able to speak to one another and drive efficency gains throughout the market.
LMA Secondary Settlement Statistics
In close co-operation with the LMA Loans Operations Committee, the LMA has begun collating settlement statistics from major European trading banks.
Video Content
Operational considerations around RFR lending
With Kam Mahil – LMA and Brian Fraser – Lloyds Bank
E-signings and virtual signings for syndicated loan transactions – Common questions arising from Covid-19
You need to log-in and register to view this webinar.
Resources
Secondary Heatmap
Click here for a copy of the secondary heat map template and click here for the accompanying guiding principles.
Inhibitors to Liquidity in the Loan Market
This guide seeks to highlight issues that have the potential to impact liquidity in the loan market, focusing primarily on those issues prevalent in the leveraged loan market.
Desktop Series
The desktop series act as operational guides for teams to refer to when carrying out their day-to-day activities.
Dealing with Requests for Amendments
Recommendations for best practice for dealing with amendments to a loan agreement, from both a pragmatic and legal standpoint.
Loan Servicing Heatmap
Click here for a copy of the loan servicing heat map template and click here for the accompanying guiding principles.
Trade Recap Template
The trade recap template's purpose is to prompt lenders with the required details necessary to complete a trade confirmation.
Guide to Agency Protections
An overview of the principal protections provided in an LMA facility agreement, identifying the standard protections that an agent under a loan agreement would expect to benefit from.
Closing a Primary Syndication - Factors to Consider
Key challenges facing agents during the completion of a primary syndicated lending transaction and the primary syndication process.
Understanding the Loan Market
E-learning course comprised of 10 modules providing an overview of the syndicated loan market.
An Agent's Guide to Handling Ancillary Facilities
An introduction to ancillary facilities and their treatment in LMA facility documentation together with guidance on common operational scenarios.
Click here to access the LMA Secondary Settlement Statistics.
Escalation Matrix
The "Escalation Matrix" seeks to provide institutions with a direct line to a senior member at their counterparty, who may be able to progress, or explain, any delay to a transaction where communication between the two parties has broken down or become frustrated.
We invite all LMA members to participate in this initiative by completing the attached template and sending to Sophie Turner at the LMA.
Please contact us if you have any questions.
Global Administrative and Agency Details Form
The LMA and LSTA have together launched a standard Administrative Details Form ("ADF") to be used in transactions globally. Whilst not all fields will be relevant to every transaction, it is hoped this template will constitute a market standard for communicating key administrative details. It is hoped that broad based adoption of the ADF will lead to efficiencies in both time and effort in compiling this detail.
Furthermore, the LMA has produced an Agency Details Form, which is to be used alongside the ADF. This form complies key agent and settlement details which should be used as a template