The LSTA's Complete Credit Agreement Guide, Second Edition, 2nd Edition

The LSTA's Complete Credit Agreement Guide, Second Edition, 2nd Edition

by Richard Wight, Michael J. Bellucci, Jerome McCluskey, Warren Cooke, Richard Gray
Released November 2016
Publisher(s): McGraw-Hill
ISBN: 9781259644870

Read it now on the O’Reilly learning platform with a 10-day free trial.

O’Reilly members get unlimited access to books, live events, courses curated by job role, and more from O’Reilly and nearly 200 top publishers.

Start your free trial

Book description

The definitive guide for navigating today’s credit agreements

Today’s syndicated loan market and underlying credit agreements are far more complex than ever. Since the global financial crisis, the art of corporate loan syndications, loan trading, and investing in this asset class have changed dramatically. Lenders are more diverse, borrowers more demanding, and regulations more stringent. Consequently, the credit agreement has evolved, incorporating many new provisions and a host of revisions to existing ones.

The LSTA’s Complete Credit Agreement Guide brings you up to speed on today’s credit agreements and helps you navigate these complex instruments. This comprehensive guide has been fully updated to address seven years of major change—which has all but transformed the loan market as we knew it. It provides everything you need to address these new developments, including what to look for in large sponsor-driven deals, the rise of “covenant lite” agreements for corporate borrowers seeking fewer covenant restrictions, Yankee Loans, other products resulting from globalization, and other product developments driven by the diversification of the investor class.

You’ll benefit from the authors’ in-depth coverage of all the nuances of today's credit agreements, as well as their tips on how to protect your loan, manage defaults, and navigate cross-border deals. This reliable guide covers:

o Commitments, Loans, and Letters of Credit
o Interest and Fees
o Amortization and Maturity
o Conditions Precedent
o Representations
o Covenants
o Guarantees and Security
o Defaults and Enforcement
o Interlender, Voting, and Agency issues
o Defaulting Lenders
o Assignments, Participations, and Disqualified Lender ListsBorrower Rights
o Regulatory Developments

Structuring and managing credit agreements has always been a difficult process – but now it’s more complicated than ever. Whether you work for a company that borrows money in the syndicated loan market or for a bank, a hedge fund, pension fund, insurance company, or other financial institution, the LSTA’s Complete Credit Agreement Guide puts you ahead of the curve of today’s credit landscape.

Table of contents

  1. Cover
  2. Title Page
  3. Copyright
  4. Dedication
  5. Contents
  6. Preface
  7. 1 The Credit Agreement
  8. 2 Commitments, Loans, and Letters of Credit
    1. 2.1 Credit Variants
      1. 2.1.1 Loans
        1. 2.1.1.1 Revolving Credit versus Term Loans
        2. 2.1.1.2 A and B Loan Tranches
        3. 2.1.1.3 Competitive Bid Loans
        4. 2.1.1.4 Swingline Loans
      2. 2.1.2 Letters of Credit
        1. 2.1.2.1 Application for Issuance
        2. 2.1.2.2 Form of Letter of Credit
        3. 2.1.2.3 Expiration Date
        4. 2.1.2.4 Limitations on Amount
        5. 2.1.2.5 Examination of Documents
        6. 2.1.2.6 Borrower’s Reimbursement Obligation
        7. 2.1.2.7 Participations by Lenders
        8. 2.1.2.8 Strict versus Substantial Compliance
        9. 2.1.2.9 Indemnification
        10. 2.1.2.10 Cash Collateral
      3. 2.1.3 Synthetic Letters of Credit
      4. 2.1.4 Bankers’ Acceptances
    2. 2.2 Commitments
      1. 2.2.1 Several Liability
      2. 2.2.2 Reducing Revolving Credit Commitments
      3. 2.2.3 Terminating Commitments
      4. 2.2.4 Increasing Commitments: Accordion Features and Incremental Facilities
        1. 2.2.4.1 Accordion Feature
        2. 2.2.4.2 Incremental Facilities
        3. 2.2.4.3 Recent Developments
      5. 2.2.5 “Termout” of Revolving Credit Commitments
      6. 2.2.6 Loan Commitment Letters
    3. 2.3 Multicurrency Facilities
      1. 2.3.1 Ratable Committed Dollar/FX Loans
      2. 2.3.2 Nonratable Committed Loans
      3. 2.3.3 Local Currency Tranches
      4. 2.3.4 Uncommitted FX Loans
      5. 2.3.5 Multicurrency Competitive Bid Loans
    4. 2.4 Second Lien and Unitranche Facilities
      1. 2.4.1 General Observations
      2. 2.4.2 Bankruptcy Issues
        1. 2.4.2.1 Post-Petition Interest
        2. 2.4.2.2 Debtor-in-Possession Financing and Use of Cash Collateral
        3. 2.4.2.3 Automatic Stay
        4. 2.4.2.4 Contest Rights
        5. 2.4.2.5 Plan Confirmation
        6. 2.4.2.6 Aggregate Effect
        7. 2.4.2.7 Recent Bankruptcy Decisions
      3. 2.4.3 Unitranche Facilities
    5. 2.5 Minimums, Multiples, and Frequency
    6. 2.6 Notices and Mechanics of Funding
    7. 2.7 Amend and Extend
    8. 2.8 Refinancing Facilities
    9. 2.9 Cashless Settlement
  9. 3 Interest and fees
    1. 3.1 Interest
      1. 3.1.1 Base Rate Interest
      2. 3.1.2 LIBOR Interest
        1. 3.1.2.1 General Principles
        2. 3.1.2.2 Interest Periods
        3. 3.1.2.3 Reserve Requirements
        4. 3.1.2.4 Why LIBOR?
        5. 3.1.2.5 LIBOR Scandal and Recent Developments
      3. 3.1.3 Competitive Bid Loans
      4. 3.1.4 Other Pricing Options
      5. 3.1.5 Applicable Margins
        1. 3.1.5.1 General Principles
        2. 3.1.5.2 Margins Based upon Credit Ratings
        3. 3.1.5.3 Margins Based upon Financial Tests
      6. 3.1.6 Interest Payment Dates
      7. 3.1.7 PIK Interest and “Toggle” Loans
      8. 3.1.8 Default Interest
    2. 3.2 Fees
      1. 3.2.1 Commitment Fees
      2. 3.2.2 Facility Fees
      3. 3.2.3 Utilization Fees
      4. 3.2.4 Letter of Credit Fees
      5. 3.2.5 Swingline Fronting Fees
      6. 3.2.6 Upfront Fees
      7. 3.2.7 Administrative Agency Fees
    3. 3.3 Computation of Interest and Fees
    4. 3.4 Accrual Conventions
    5. 3.5 Business Day Conventions
    6. 3.6 Lending Offices
    7. 3.7 Yield Protection
      1. 3.7.1 Increased Costs
      2. 3.7.2 Capital Costs
      3. 3.7.3 LIBOR Market Disruption
        1. 3.7.3.1 Background
        2. 3.7.3.2 Components of the Market Disruption Clause
        3. 3.7.3.3 Historical Issues with the Market Disruption Clause
      4. 3.7.4 Illegality
      5. 3.7.5 Breakfunding
        1. 3.7.5.1 General Principles
        2. 3.7.5.2 Breakfunding upon Initial Drawdowns
        3. 3.7.5.3 Sell-Down Costs
        4. 3.7.5.4 Compared to Prepayment Premiums
      6. 3.7.6 Taxes
        1. 3.7.6.1 Evidence of Payments
        2. 3.7.6.2 Actions by Lenders to Minimize Taxes
        3. 3.7.6.3 Refunds and Credits
        4. 3.7.6.4 Exclusions
    8. 3.8 Interest Savings Clauses
  10. 4 Amortization and Maturity
    1. 4.1 Payments Generally
      1. 4.1.1 Immediately Available Funds
      2. 4.1.2 Time of Payment
      3. 4.1.3 Extensions for Nonbusiness Days
      4. 4.1.4 Obligation to Repay Absolute
    2. 4.2 Scheduled Repayment
    3. 4.3 Advancing the Maturity Date
    4. 4.4 364-Day Facilities
    5. 4.5 Stripped Loan Facilities
    6. 4.6 Voluntary Prepayments
    7. 4.7 Mandatory Prepayments
      1. 4.7.1 Revolving Clean Downs
      2. 4.7.2 Borrowing Base
      3. 4.7.3 Asset Sales
      4. 4.7.4 Casualty Events
      5. 4.7.5 Debt and Equity Issuances
      6. 4.7.6 Excess Cash Flow/Cash Sweep
      7. 4.7.7 Change of Control
      8. 4.7.8 Currency Adjustments in Multicurrency Deals
    8. 4.8 Allocation of Prepayments
    9. 4.9 Cover for Letters of Credit
    10. 4.10 Prepayment Opt Outs
    11. 4.11 Prepayment Premiums
    12. 4.12 Multiple Borrowers
  11. 5 Conditions Precedent
    1. 5.1 Effectiveness Conditions
      1. 5.1.1 Signing versus Closing
      2. 5.1.2 Execution; Lender Addenda; Fronting Letters
      3. 5.1.3 Matters Relating to Organization and Authorization
      4. 5.1.4 Opinions
      5. 5.1.5 Government Approvals
      6. 5.1.6 The MAC Condition
      7. 5.1.7 Conditions That Relate to Perfection of Collateral
      8. 5.1.8 Promissory Notes
      9. 5.1.9 Special Conditions Applicable to Non-U.S. Borrowers
      10. 5.1.10 Repayment of Other Debt
      11. 5.1.11 Other Conditions
        1. 5.1.11.1 Appraisals
        2. 5.1.11.2 Solvency
        3. 5.1.11.3 Environmental Due Diligence
        4. 5.1.11.4 Insurance
        5. 5.1.11.5 Patriot Act
        6. 5.1.11.6 The Catchall
      12. 5.1.12 Effectiveness
    2. 5.2 Ongoing Conditions
      1. 5.2.1 Representations
      2. 5.2.2 Defaults
    3. 5.3 SunGard Conditionality in Acquisition Financings
  12. 6 Representations
    1. 6.1 Legal Matters Representations
      1. 6.1.1 Organization, Existence, Power, and Qualification to Do Business
      2. 6.1.2 Due Authorization
      3. 6.1.3 Due Execution
      4. 6.1.4 Enforceability
      5. 6.1.5 No Conflict
      6. 6.1.6 Government Approvals
      7. 6.1.7 Compliance with Law; Licenses
      8. 6.1.8 Investment Company Act
      9. 6.1.9 Anti-Corruption Regulations
      10. 6.1.10 Office of Foreign Assets Control Regulations
      11. 6.1.11 USA PATRIOT Act
      12. 6.1.12 Margin Regulations
    2. 6.2 Financial Condition Representations
      1. 6.2.1 Financial Statements
      2. 6.2.2 Material Adverse Change
      3. 6.2.3 Litigation
      4. 6.2.4 Projections
      5. 6.2.5 Taxes
      6. 6.2.6 Pension and Welfare Plans
      7. 6.2.7 Solvency
      8. 6.2.8 Material Agreements
    3. 6.3 Representations and Disclosures Regarding the Business
      1. 6.3.1 Capitalization
      2. 6.3.2 Subsidiaries and Investments
      3. 6.3.3 Real Property
      4. 6.3.4 Existing Debt and Liens
      5. 6.3.5 Title to Property
      6. 6.3.6 Labor Matters
      7. 6.3.7 Intellectual Property
      8. 6.3.8 Environmental Matters
      9. 6.3.9 No Burdensome Restrictions
    4. 6.4 Representations by Foreign Borrowers
      1. 6.4.1 Commercial Activity
      2. 6.4.2 Pari Passu Ranking
      3. 6.4.3 Legal Form
      4. 6.4.4 Foreign Taxes
      5. 6.4.5 Sovereign Borrowers
    5. 6.5 Other Representations
      1. 6.5.1 Completeness of Disclosures
      2. 6.5.2 Status as Senior Debt
      3. 6.5.3 Perfection and Priority of Security
    6. 6.6 The Special Circumstances of Acquisition Financings
  13. 7 Covenants
    1. 7.1 Some General Principles
    2. 7.2 Scope of Covenant Coverage
      1. 7.2.1 Subsidiaries Generally
      2. 7.2.2 Restricted and Unrestricted Subsidiaries
      3. 7.2.3 Significant Subsidiaries and Immaterial Subsidiaries
    3. 7.3 Covenant Definitions
      1. 7.3.1 Definitions Generally; GAAP and IFRS
      2. 7.3.2 Key Financial Definitions
        1. 7.3.2.1 Debt
        2. 7.3.2.2 EBITDA
    4. 7.4 Financial Covenants
      1. 7.4.1 Date-Specific versus Performance versus Hybrid Covenants; Annualized and Rolling Periods
      2. 7.4.2 Phase-In and Pro Forma Treatment
      3. 7.4.3 Date-Specific Financial Covenants
        1. 7.4.3.1 Net Worth
        2. 7.4.3.2 Net Worth Ratio
        3. 7.4.3.3 Current Ratio/Working Capital
      4. 7.4.4 Performance-Based Financial Covenants
        1. 7.4.4.1 Interest Coverage Ratio
        2. 7.4.4.2 Debt Service Coverage Ratio
        3. 7.4.4.3 Fixed Charges Coverage Ratio
        4. 7.4.4.4 Lease Payments
        5. 7.4.4.5 Capital Expenditures
      5. 7.4.5 Hybrid Financial Covenants
        1. 7.4.5.1 Leverage Ratio
    5. 7.5 Affirmative Covenants
      1. 7.5.1 Disclosure Covenants
        1. 7.5.1.1 Financial Statements
        2. 7.5.1.2 Compliance Certificates
        3. 7.5.1.3 Notices of Material Events
        4. 7.5.1.4 Catchall Provisions
        5. 7.5.1.5 Delivery
      2. 7.5.2 Inspection Rights
      3. 7.5.3 Insurance
      4. 7.5.4 Miscellaneous “Who-Can-Object” Covenants
        1. 7.5.4.1 Books and Records
        2. 7.5.4.2 Properties
        3. 7.5.4.3 Existence and Franchises
        4. 7.5.4.4 Compliance with Law; Sanctions and Anticorruption Laws
        5. 7.5.4.5 Payment of Taxes and Other Obligations
        6. 7.5.4.6 Government Approvals
        7. 7.5.4.7 Substantive Consolidation
      5. 7.5.5 Use of Proceeds
      6. 7.5.6 Interest Rate Protection
      7. 7.5.7 Pari Passu Ranking
      8. 7.5.8 Further Assurances
    6. 7.6 Negative Covenants
      1. 7.6.1 Lien Covenant
        1. 7.6.1.1 Lender Liens
        2. 7.6.1.2 Grandfathered Liens
        3. 7.6.1.3 Permitted Encumbrances
        4. 7.6.1.4 Purchase Money Liens
        5. 7.6.1.5 Acquisition Liens
        6. 7.6.1.6 Secured Debt Liens
        7. 7.6.1.7 Non-guarantor Liens
        8. 7.6.1.8 General Lien Basket
      2. 7.6.2 Equal and Ratable Sharing Clause
        1. 7.6.2.1 Documentation Issues
        2. 7.6.2.2 Sharing Rights
        3. 7.6.2.3 Voting Rights
        4. 7.6.2.4 Collateral Agent
      3. 7.6.3 Negative Negative Pledge or Burdensome Agreements
        1. 7.6.3.1 Grandfathered Restrictions
        2. 7.6.3.2 Boilerplate Restrictions
        3. 7.6.3.3 Secured Debt Restrictions
        4. 7.6.3.4 Sale Restrictions
      4. 7.6.4 Debt
        1. 7.6.4.1 Lender Debt
        2. 7.6.4.2 Grandfathered Debt
        3. 7.6.4.3 Intercompany Debt
        4. 7.6.4.4 Purchase Money Debt
        5. 7.6.4.5 Acquisition Debt
        6. 7.6.4.6 Subsidiary Debt
        7. 7.6.4.7 Debt Basket and Ratio Debt Basket
      5. 7.6.5 Disqualified Stock
      6. 7.6.6 Fundamental Changes, Asset Sales, and Acquisitions
        1. 7.6.6.1 Fundamental Changes
        2. 7.6.6.2 Asset Sales
        3. 7.6.6.3 Acquisitions
      7. 7.6.7 Sale-Leasebacks
      8. 7.6.8 Investments
        1. 7.6.8.1 Grandfathered Investments
        2. 7.6.8.2 Cash and Cash Equivalents
        3. 7.6.8.3 Subsidiaries
        4. 7.6.8.4 Guarantees
        5. 7.6.8.5 Acquisition Investments
        6. 7.6.8.6 Investment Basket
      9. 7.6.9 Lines of Business
      10. 7.6.10 Derivatives
      11. 7.6.11 Guarantees or Contingent Liabilities
      12. 7.6.12 Dividends and Equity Repurchases
        1. 7.6.12.1 Stock Dividends
        2. 7.6.12.2 Subsidiary Dividends
        3. 7.6.12.3 Employee Stock Plans
        4. 7.6.12.4 Preferred Dividends
        5. 7.6.12.5 Dividend Baskets
      13. 7.6.13 Tax-Sharing Payments and Permitted Tax Distributions
      14. 7.6.14 Restrictions on Subsidiary Distributions
        1. 7.6.14.1 Grandfathered Restrictions
        2. 7.6.14.2 Permitted Debt Restrictions
        3. 7.6.14.3 Legal Restrictions
        4. 7.6.14.4 Sale Restrictions
        5. 7.6.14.5 Limited Customary Restrictions
      15. 7.6.15 Modification and Prepayment of Other Debt
      16. 7.6.16 Affiliate Transactions
      17. 7.6.17 Amendments to Organic Documents and Other Agreements
      18. 7.6.18 Fiscal Periods and Accounting Changes
      19. 7.6.19 Passive Holding Company
    7. 7.7 Incorporation by Reference
    8. 7.8 Covenant Lite
  14. 8 Guarantees and Security
    1. 8.1 Guarantees and Security Generally
    2. 8.2 Guarantees
      1. 8.2.1 Guarantees Generally
      2. 8.2.2 Guarantee of Payment versus Guarantee of Collection
      3. 8.2.3 Waivers
      4. 8.2.4 Subrogation
      5. 8.2.5 Reinstatement
      6. 8.2.6 Insolvency of Borrower
      7. 8.2.7 Continuing Guarantee
      8. 8.2.8 Summary Procedure
      9. 8.2.9 Guarantee Limitations and Rights of Contribution
      10. 8.2.10 Subordination
      11. 8.2.11 Limitations on Guarantee of Hedging Obligations
    3. 8.3 Collateral Packages
      1. 8.3.1 Conditions
      2. 8.3.2 Representations
      3. 8.3.3 Further Assurances Covenant
      4. 8.3.4 Lien Covenant
      5. 8.3.5 Defaults
      6. 8.3.6 Voting
      7. 8.3.7 Expenses
      8. 8.3.8 Agent Authorizations
    4. 8.4 Springing Liens
    5. 8.5 Collateral Allocation Mechanism
    6. 8.6 Deemed Dividends
  15. 9 Defaults and Enforcement
    1. 9.1 Events of Default
      1. 9.1.1 Default in Payment
      2. 9.1.2 Inaccuracy of Representations
      3. 9.1.3 Breach of Covenants
      4. 9.1.4 Cross-Default; Cross-Acceleration
        1. 9.1.4.1 Why a Cross-Default?
        2. 9.1.4.2 What Debt Is Crossed?
        3. 9.1.4.3 Meanings of “Cross-Default” and “Cross-Acceleration”
        4. 9.1.4.4 Mandatory Prepayments
      5. 9.1.5 Insolvency
        1. 9.1.5.1 Voluntary
        2. 9.1.5.2 Involuntary
        3. 9.1.5.3 Admission
      6. 9.1.6 Judgment Default
      7. 9.1.7 ERISA Events
      8. 9.1.8 Environmental Events
      9. 9.1.9 Change of Control or Management
      10. 9.1.10 Invalidity of Guarantees or Liens
      11. 9.1.11 Foreign Borrowers
      12. 9.1.12 Material Adverse Change
      13. 9.1.13 Specialized Events of Default
      14. 9.1.14 Significant Subsidiaries
    2. 9.2 Remedies
      1. 9.2.1 Stop Lending
      2. 9.2.2 Terminate Commitments
      3. 9.2.3 Accelerate
      4. 9.2.4 Demand Cover for Letters of Credit
      5. 9.2.5 Institute Suit
      6. 9.2.6 Demand Payment from Guarantors
      7. 9.2.7 Foreclose on Collateral
    3. 9.3 Rescission
    4. 9.4 Waterfalls
    5. 9.5 Setoff
    6. 9.6 Individual versus Collective Action
    7. 9.7 Lender Liability Risks
      1. 9.7.1 Breach of Contract
      2. 9.7.2 Creditor Control
      3. 9.7.3 Tortious Interference
      4. 9.7.4 Environmental Liability
      5. 9.7.5 RICO
      6. 9.7.6 Securities Laws
      7. 9.7.7 Wrongful Coercion
  16. 10 Interlender, Voting, and Agency Issues; Defaulting Lenders
    1. 10.1 Agency Issues
      1. 10.1.1 Appointment
      2. 10.1.2 Rights of Administrative Agent Individually
      3. 10.1.3 No Fiduciary Duty
      4. 10.1.4 Exculpation
      5. 10.1.5 Reliance
      6. 10.1.6 Delegation
      7. 10.1.7 Filing Proofs of Claim
      8. 10.1.8 Credit Bidding
      9. 10.1.9 Successor Agents
      10. 10.1.10 Collateral and Guaranty Matters
      11. 10.1.11 Syndication and Other Agents
    2. 10.2 Lender Indemnification
    3. 10.3 Voting
      1. 10.3.1 Basic Rule
      2. 10.3.2 Multitranche Agreements
      3. 10.3.3 Consents Requiring More Than a Majority
        1. 10.3.3.1 Money Terms
        2. 10.3.3.2 Pro Rata Provisions
        3. 10.3.3.3 Voting
        4. 10.3.3.4 Conditions
      4. 10.3.4 Unanimous versus Affected Lender Consent
      5. 10.3.5 Special Lender Consents
      6. 10.3.6 Collateral Security
      7. 10.3.7 Vote Splitting
      8. 10.3.8 Lenders That Default
    4. 10.4 Pro Rata Treatment
    5. 10.5 Sharing of Setoffs and Other Claims
    6. 10.6 The Clawback Clauses
    7. 10.7 Access to the Loan Register
    8. 10.8 Defaulting Lenders
      1. 10.8.1 Defining a Defaulting Lender
      2. 10.8.2 Disenfranchising Defaulting Lenders
      3. 10.8.3 Mitigating Fronting Bank Exposure
      4. 10.8.4 Forfeiture of Fees
      5. 10.8.5 Application of Payments
      6. 10.8.6 Removing Defaulting Lenders from the Syndicate
      7. 10.8.7 Removing a Defaulting Administrative Agent
  17. 11 Assignments and Participations
    1. 11.1 Distinguishing Assignments and Participations
    2. 11.2 Assignments
      1. 11.2.1 The General Rule for Successors and Assigns
      2. 11.2.2 Consent Rights over Lender Assignments
        1. 11.2.2.1 Defaults
        2. 11.2.2.2 Assignments to Lenders and Lender Affiliates
        3. 11.2.2.3 Assignments to Borrower Affiliates
        4. 11.2.2.4 Agent Consent Rights
        5. 11.2.2.5 Issuing and Swingline Lender Consent Rights
        6. 11.2.2.6 Unreasonably Withholding or Delaying Consent
        7. 11.2.2.7 Absolute Consent Rights
        8. 11.2.2.8 Consent During Primary Syndication
        9. 11.2.2.9 Other Considerations
      3. 11.2.3 Eligible Assignees and Disqualified Lenders
      4. 11.2.4 Minimums
      5. 11.2.5 Transfer Fees
      6. 11.2.6 Loan Register
    3. 11.3 Participations
    4. 11.4 Loan Pledges
    5. 11.5 Third Party Beneficiaries
    6. 11.6 Are Loans Covered by the Securities Laws?
  18. 12 The Boilerplate
    1. 12.1 Notice Provisions
      1. 12.1.1 Notices Generally
      2. 12.1.2 Electronic Notices
    2. 12.2 No Deemed Waivers
    3. 12.3 Cumulative Remedies
    4. 12.4 Colorado River Clause
    5. 12.5 Expenses
    6. 12.6 Borrower Indemnification; Consequential Damages
    7. 12.7 Governing Law
    8. 12.8 Enforcement Provisions
      1. 12.8.1 Jurisdiction; Process Agents
      2. 12.8.2 Venue and Forum Non Conveniens
      3. 12.8.3 Waiver of Sovereign Immunity
      4. 12.8.4 Waiver of Jury Trial
      5. 12.8.5 Judgment Currency
    9. 12.9 Severability; Counterparts; Integration; Captions
      1. 12.9.1 Severability
      2. 12.9.2 Counterparts; Effectiveness
      3. 12.9.3 Integration
      4. 12.9.4 Captions
    10. 12.10 Electronic Execution
    11. 12.11 Survival
    12. 12.12 USA PATRIOT Act
  19. 13 Borrower Rights
    1. 13.1 The Right That Lenders Make Loans
    2. 13.2 The Right That Lenders Mitigate Costs
    3. 13.3 The “Yank-a-Bank” Provision
    4. 13.4 Documentation from Lenders
    5. 13.5 Implied Covenant of Good Faith and Fair Dealing; No Implied Fiduciary Duties
    6. 13.6 The Right to Designate Additional Borrowers
    7. 13.7 Equity Cure Rights
    8. 13.8 Confidentiality
      1. 13.8.1 The Confidentiality Clause
        1. 13.8.1.1 Disclosure to Regulators
        2. 13.8.1.2 Disclosure Required by Law or Subpoena
        3. 13.8.1.3 Disclosure to Other Agreement Parties
        4. 13.8.1.4 Exercise of Remedies
        5. 13.8.1.5 Under Confidentiality Agreement
        6. 13.8.1.6 With Consent of Borrower
        7. 13.8.1.7 Information Already Public
        8. 13.8.1.8 Confidential Tax Treatment
      2. 13.8.2 Remedies
      3. 13.8.3 Use Restrictions
      4. 13.8.4 Destruction of Records
    9. 13.9 Loan Buybacks
      1. 13.9.1 Documentary Impediments
      2. 13.9.2 Overcoming Documentary Issues
      3. 13.9.3 Buyback Methodologies
      4. 13.9.4 Effect upon Amortization
    10. 13.10 Amend-and-Extend and Refinancing Facilities
  20. 14 Regulatory Developments
    1. 14.1 2013 Leveraged Lending Guidance
    2. 14.2 Agency FAQs
    3. 14.3 Impact of the Guidance
  21. Appendix I – Table of Authorities
  22. Appendix II – LSTA Model Credit Agreement Provisions
  23. Appendix III – LSTA Form of Contractual Recognition Provision
  24. Index

Product information

  • Title: The LSTA's Complete Credit Agreement Guide, Second Edition, 2nd Edition
  • Author(s): Richard Wight, Michael J. Bellucci, Jerome McCluskey, Warren Cooke, Richard Gray
  • Release date: November 2016
  • Publisher(s): McGraw-Hill
  • ISBN: 9781259644870