Loan Facility Agreements - A Practical Approach

This course will explore the essential structure of a loan facility agreement and consider in detail both borrower and lender concerns in negotiating key provisions.

The aim of the course is to help you to understand the purpose of the standard lender protections included in facility agreements and also offer practical advice in relation to financial close and drawdown. The conditions to drawdown under a facility agreement will also be explored.

CONTENT

Structure of a Facility Agreement

• Types of facility
  • Term Loan
  • Revolving
  • Overdraft
  • Bridging
• Single loan vs multiple loans
• Bilateral vs syndicated
• Borrowers and other obligors
• Secured vs unsecured
• Purpose of the loan
• Mechanics to drawdown
• Interest
• Repayment and Prepayment

Negotiating the Key Clauses

The reasons behind the provisions and both borrower and lender positions in negotiations in respect of:

• Representations and warranties
• Information covenants
• General covenants
• Financial covenants
• Events of default

Standard Lender Protections

• Tax indemnities
• Other indemnities
• Increased Costs
• Hedging requirements
• Provisions as between lenders

Conditions Precedent

• Constitutional documents, board minutes and certificates
• Legal opinions
• Finance documents
• Financial statements and reports
• Funds flow
• Transaction documents and the different conditions you might require depending on the nature of the transaction
• Insurance
• Existing security

Practical Advice for Drawdown and Closing

• Documents list and managing your CPs
• Signatories
• Drawdown notice
• Undertakings

TRAINING METHODOLOGY

The training methodology combines lectures, discussions, group exercises and illustrations. Participants will gain both theoretical and practical knowledge of the topics. The emphasis is on the practical application of the topics and as a result participant will go back to the workplace with both the ability and the confidence to apply the techniques learned to their duties.

1ST BATCH:            13th - 16th Feb, 2024

2ND BATCH:           19th – 21st June, 2024          

3RD BATCH:           8th - 11th Oct, 2024