White Paper

19 Pages
  • 19 Pages

Syndicated Debt Transactions - London, European Union

 

It is necessary in all syndicate transactions to contemplate the possibility of a lender defaulting on its obligations.

Increasingly complex protocols are being included for lender default, largely as a consequence of lender failures during the credit crisis. Consideration will need to be given to the nature of the syndicate, the participation by individual members, the consequences of a syndicate member failure or default, and the willingness of other syndicate members to take up responsibilities in these circumstances. These will depend upon the nature of the syndicate participants, in many cases, and on the requirements of the issuer as to assurance of full syndicate participation. This white paper reviews definitions of lending terms, majority lenders' instructions, and required consents.