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In sickness and in health: a review of transfer provisions in European leveraged loan agreements

4 April 2025 / Author(s): Nick Cusack , Susan Whitehead , Alistair Handy
Issue: April 2025 / Categories: Feature

Private equity sponsors, with good reason, are very aware of the importance of their portfolio businesses being able to control the types of lenders who hold their debt. They are keen to manage lender relationships throughout their investment period. Equally, it is important for lenders not to be unduly restricted in their ability to trade out of their loans should they need to. This obvious tension in the relationship between the borrower and its lenders has resulted in ever more detailed and restrictive transfer provisions in European leveraged loan agreements. This article considers the details of those provisions.

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