Committed facility Definition

GLOSSARY

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What does Committed facility mean?

A financing arrangement under which a bank is committed to lend an agreed amount of money for a specified period of time provided the relevant terms of the facilities agreement are complied with. It can be contrasted with an on-demand facility in which the lender may require repayment at any time.

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Coronavirus (COVID-19)—implications for lending transactions [ARCHIVED]

Coronavirus (COVID-19)—implications for lending transactions [ARCHIVED] ARCHIVED: This Practice Note is archived and is no longer maintained. Coronavirus (COVID-19) Lawyers across the world have been grappling with many common areas of concern in connection with the coronavirus (COVID-19) pandemic. There are a number of areas that are particularly relevant to banking and finance lawyers. For more detail and analysis on these, see Practice Note: Coronavirus (COVID-19) implications for Banking & Finance lawyers, which is updated regularly with news, practical guidance and analysis covering the impact of COVID-19 developments. This Practice Note focuses on government and regulatory responses to the pandemic from a lending perspective, implications for facility agreements, both from a borrower and lender perspective, and various practical implications in relation to deal execution. We have put together a set of COVID-19 FAQs, which comprise a number of questions that might arise on a lending transaction during the crisis. We add to the list on a regular basis. To access the list, see Practice Note: Coronavirus (COVID-19)—Banking & Finance...

Structure of a facility agreement

Structure of a facility agreement This Practice Note is intended as an introductory guide to facility agreements (loan agreements) for those new to lending transactions. It discusses the usual components of a bilateral, committed facility agreement to a corporate borrower and links out to further information. For a more comprehensive introductory guide to lending transactions, see Practice Note: Introductory guide to lending and for introductory information on drafting and negotiating a facility agreement, see Practice Notes: How to draft and negotiate a facility agreement and Drafting techniques and contract language. Where appropriate, this Practice Note highlights relevant provisions in Precedent: Facility agreement (term loan): single company borrower—bilateral—with or without security or a guarantee and the Loan Market Association (LMA) investment grade multicurrency term facility agreement with/without observation shift (the LMA facility agreement) (available to LMA members on the LMA website). Note the LMA facilities agreements are for use on syndicated rather than bilateral transactions—see Practice Note: Bilateral, syndicated and club arrangements. For clause by clause commentary, see...

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Financing in times of crisis

Banking and finance analysis: The banking and finance experts of Schoenherr Attorneys at Law have compiled a comprehensive Central and Eastern European overview of the practical legal implications to be considered in finance transactions in the context of the ongoing coronavirus (COVID-19) pandemic.

It’s all LOBO–local authorities and LOBO loans

Local Government analysis: Patricia Grinyer, partner in the finance department at Weightmans, outlines the history of lender option borrower option (LOBO) loans in connection with local authorities in the UK, explaining that these loans are a major element in the borrowing habits of councils and can potentially have harmful financial and reputational consequences.

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