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Euromoney Learning Solutions

Loan Documentation

Jul 15—17
3 days
New York, NY, USA
USD 4495
USD 1498 per day
Oct 21—23
3 days
London, United Kingdom
GBP 3395 ≈USD 4308
GBP 1131 per day
Dec 4—6
3 days
Paris, France
EUR 3995 ≈USD 4541
EUR 1331 per day

How it works

Disclaimer

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Full disclaimer.

Description

Learn all aspects of loan transactions and the legal complications of incorrect documentation

This three-day intensive course will cover all aspects of a loan transaction, concentrating particularly on the agreement itself and on the legal implications of a properly drafted and incorrectly drafted document. The course will provide a clause-by-clause analysis of loan documents, including standing 'boilerplate' provisions and a workshop on common banking expressions.

You will be taken step-by-step through the process of documenting a loan, from the early stages of pre-contractual issues, letters of commitment and written offers, through to administrative provisions, representations, covenants, defaults, transfer provisions, guarantees and the eventuality of insolvency.

By attending this course, you will fully understand the legal implications of a properly drafted and incorrectly drafted document.

You will:

  • Be guided through the essential elements of various loan transactions
  • Learn how to negotiate representations, covenants and events of default from both a lender’s and borrower’s perspective
  • Gain a thorough understanding of the real value of security
  • Recognise pre-contractual issues and the legal nature of a letter of commitment
  • Improve your knowledge of interbank markets and basic administrative provisions
  • Become familiar with the standard ‘boilerplate’ provisions
  • Understand the concept of due diligence
  • Be able to deal with the transfer of loan obligations
  • Master common banking expressions

Agenda

Day 1

Introduction

  • The most common structures of loan transactions
  • Single banks and syndicated loans
  • Term loans and revolving credit facilities
  • Single currency and multi-currency facilities
  • Loan and guarantee facilities
  • Secured and unsecured facilities

Pre-Contractual Issues

  • What issues should it address?
  • How much detail should it contain?
  • Is it intended to create a binding legal commitment?

Workshop: Libor Funding and Broken Funding Costs

This session will involve consideration of how the Eurocurrency interbank markets work and the consequences in the documentation in terms of:

  • Interest rates and interest periods
  • Broken funding costs (and profits)
  • Default interest

Withholding Tax

Here we will look at withholding tax, double taxation treaties, and the consequences for the loan documentation.

Overview and Administrative Provisions

This session will involve an overview of the loan agreement and how it is structured to protect the lender, and an examination of the "mechanical" provisions of a typical loan agreement, such as the payments clause and the procedures to be followed on drawdown.

  • Drawdown procedures
  • Repayment and prepayment

Representations

  • Delegates will consider the purpose of the representations. Typical representations will be considered, including common comments from either side.

Homework Exercise

As homework, participants will consider whether certain activities are prohibited by the loan documentation; and if so; which provisions are relevant.

Day 2

Repeated Representations

We will review the homework, the impact of repeating representations, and the interrelations between different parts of the document, both in a term loan and in a revolving credit.

Covenants and Events of Default

Typical covenants and events of default will be discussed, including:

  • Purpose
  • Financial covenants
  • Cross default
  • Material adverse change
  • “Default”
  • Glossary of Terms

'Boilerplate' Provisions and Loan Transfers

  • Set-off clause
  • Indemnities
  • Agency clause
  • Pro-rata sharing clause
  • Loan transfers
  • Novations
  • Assignments
  • Sub participations
  • Derivatives

Homework Exercise

  • Calculate the likely recoveries of different classes of creditors in a winding up.

Day 3

Review of Homework Exercise

Security and Quasi Security

Different types of security will be considered, including:

  • Liens
  • Pledges
  • Charges (fixed and floating)
  • Mortgages
  • Title as an alternative

We will also consider the different insolvency regimes in the UK and the circumstances in which security may be set aside (or enforcement restricted) under English law.

Guarantees

  • The important provisions of a typical guarantee will be examined as will:
  • Commercial benefit and transactions at an undervalue
  • Common provisions of a guarantee

Due Diligence

  • What issues are relevent?
  • Where to conduct due diligence
  • Legal opinions

Who should attend

  • In-house lawyers in banks and financial institutions
  • Bankers concerned with the negotiation of loans
  • Bank executive involved in the documentation of loans
  • Lawyers in private practice who advise clients on loan agreements
  • Corporate counsel
  • Credit control officers
  • Credit administration officers

Experts

Sue Wright is a solicitor with over 18 years experience in international banking transactions, including syndicated loans, subordinated debt, structured finance and tax driven transactions. She was a partner in the banking department at Norton Rose for 8 years and was responsible for training ass...

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Next dates

Jul 15—17
3 days
New York, NY, USA
USD 4495
USD 1498 per day
Oct 21—23
3 days
London, United Kingdom
GBP 3395 ≈USD 4308
GBP 1131 per day
Dec 4—6
3 days
Paris, France
EUR 3995 ≈USD 4541
EUR 1331 per day

How it works

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