Credit Agreement Mfn

Credit Agreement Mfn

Once there are still broad-cap agreements and best-tier sponsors, incremental institutions (which can also be called accordion or additional facilities) have become a permanent feature of leverage markets and are becoming more and more frequent in the field of corporate credit. As far as leveraged loans are concerned, the incremental facilities are integrated in such a way that, of all the European transactions pursued by DebtXplained in 2015, only 1% did not contain an incremental facility. The frequency with which incremental facilities are included in facility agreements has led some interest groups to request the Loan Market Association (“LMA”) to include a number of optional incremental facilities (the “LMA Provisions”) in its recommended form of leverage agreement.

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