Syndicated Lending

by Fight

• ISBN13: 9780750659079
• ISBN10: 0750659076
• Format: Paperback
• Copyright: 2004-11-22
• Publisher: Elsevier Science

Summary

Syndicated Lending aims to increase the readers awareness of the benefits and risks involved in taking part in the Syndicated Loan market. This book covers: *Who the major players in the syndication loan market are *Why syndication loans are used *Syndication loan structures and documentation *Secondary syndication loan market *Inspired from the basic entry level training courses that have been developed by major international banks worldwide. *Will enable MSc Finance students, MBA students and those already in the finance profession to gain an understanding of the basic information and principles underlying the topic under discussion *Questions with answers, study topics, practical "real world" examples and text with an extensive bibliography and references ensure learning outcomes can be immediately applied

Table of Contents

Foreword	ix
1 Introduction to syndicated loans	1	(6)
What is a syndicated loan?	1	(1)
The growth of the syndicated loan market	2	(4)
The secondary market in syndicated loans	6	(1)
2 Attractions of the syndicated loan market	7	(22)
The borrower	7	(5)
The participants	12	(7)
The arranger and the agent	19	(3)
Tombstones	22	(3)
Syndications timetable - from mandate to drawdown	25	(1)
Exercise 1	26	(1)
Answers to Exercise 1	27	(2)
3 Responsibilities and obligations of syndicated loan participants	29	(14)
The borrower	29	(2)
How the borrower chooses an arranger for the syndicated loan	31	(2)
The participants and their responsibilities	33	(3)
Other considerations affecting participants in a syndicated loan	36	(1)
Roles of the arranger and the agent	37	(3)
Exercise 2	40	(1)
Answers to Exercise 2	41	(2)
4 The major players in the syndicated loans market	43	(23)
League tables	43	(20)
Barclays Capital	63	(3)
5 Structures used in syndicated loans	66	(23)
Overview of syndications	66	(1)
Term of loan	67	(1)
Revolving facilities	68	(1)
Committed and uncommitted facilities	68	(1)
Single currency or multi-currency	69	(1)
Repayment profiles	69	(1)
Repayments via bond issues/acquisition finance	70	(2)
Evergreen facilities	72	(1)
Senior debt, mezzanine finance, and subordinated loans	73	(1)
A subordinated loan	73	(1)
Securitization	74	(1)
Trade finance/pre-export finance	75	(1)
Stock loans	76	(1)
Project finance	77	(5)
Aircraft finance	82	(1)
Ship construction finance	83	(1)
Non-recourse loans	83	(1)
Standby credits	83	(1)
Property finance	84	(1)
Vodafone Air Touch	85	(4)
6 The Loan agreement	89	(36)
The preamble	90	(1)
Definitions	91	(5)
The facility	96	(1)
Purpose	96	(1)
Conditions precedent	97	(1)
Utilization	98	(2)
Repayment	100	(1)
Prepayment	101	(2)
Interest rate	103	(2)
Fees	105	(1)
Taxes and other deductions	105	(1)
Other indemnities	106	(1)
Guarantee	106	(2)
Representations and warranties	108	(2)
Undertakings	110	(4)
Indemnities	114	(1)
Currency	115	(1)
The agent and lenders	115	(1)
Sharing payments	116	(1)
Transfers of participations	116	(3)
Changes to the obligors	119	(1)
Waivers, amendments, and consents	120	(1)
Partial invalidity	120	(1)
Governing law and jurisdiction	121	(1)
Legal opinions	121	(4)
7 Loan covenants	125	(21)
The function of loan covenants	125	(4)
Types of covenants	129	(3)
Negotiating the covenants in the loan agreement	132	(5)
Functioning of covenants during the loan	137	(3)
Breach of covenant	140	(3)
Other issues	143	(3)
8 Secondary loan markets	146	(22)
History and development of the secondary loan market	146	(3)
LSTA	149	(4)
LMA	153	(3)
Syndicated loans and credit rating agencies	156	(12)
Glosssary	168	(15)
Index	183