Articles by author
Transfer restrictions in leveraged lending transactions: time for a re-assessment?
European leveraged lending practitioners will need no telling that documentary terms have been something of a one-way moveable feast in favour of borrowers and sponsors for a number of years. In particular, the extent of a lender’s right to transfer its participation in a loan facility to another institution has been gradually eroded, with the “new normal” including significant fetters on transfer rights. Meanwhile, capital reforms continue to increase the cost to bank lenders of holding loans on their balance sheets and have resulted in banks seeking to optimise their balance sheets through sales in the secondary loan market and through the use of synthetic risk transfers. Is it therefore, time for bank lenders to re-assess the acceptability of transfer restrictions and to push for fewer restrictions?1
1 APR 2022Loan documentation and risk-free reference rates: current overview
In this article, we give a brief overview of RFR referencing loan documentation in the English law syndicated loan markets together with the current and future issues of use of a term SOFR on USD syndicated loan transactions and risk-free reference rates in the context of euro and EURIBOR.
1 FEB 2023LMA €STR fallbacks to EURIBOR: use in corporate lending transactions
In December 2023, the Working Group on Euro Risk-Free Rates (Euro WG)11 issued their final, closing statement122 having agreed that their current mandate had been completed. 2Does this mean that work in relation to the use of risk-free reference rates based on 2€2STR 2in the context of euro has ended? The short answer is “not necessarily”: whilst the tools2 to implement use of such rates exist, some elements of the financial markets, such as the corporate lending market, have been slow to change practice. In this article we take stock 2of the potential use of such 2€2STR-related tools in the corporate lending markets.2
1 FEB 2024
