Loan Market Association (LMA) leveraged documentation


Published by a ½Û×ÓÊÓƵ Banking & Finance expert
Practice notes

Loan Market Association (LMA) leveraged documentation


Published by a ½Û×ÓÊÓƵ Banking & Finance expert

Practice notes
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Development of the Loan Market Association (LMA) documentation

The project to develop the LMA investment grade documents began in 1998 as a response to demand in the market for a standard form of syndicated facility agreement. The development of the LMA leveraged documents began in much the same way with the form of facility agreement for leveraged acquisition finance transactions first issued in 2004 followed by the recommended form of Intercreditor Agreement for leveraged acquisition finance transactions (senior and mezzanine) in 2009.

The LMA has continued to publish additional precedents to reflect demand from, and developments in the market. There are now standard forms for use in transactions involving senior secured notes and for transactions involving senior secured notes and high yield notes, reflecting the large number of transactions funded partially or fully by way of high yield debt.

The intention behind both the LMA standard form documents is to save time and cost by providing a position that reflects current market practice for that type of transaction. The documents are intended to only be a starting

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Jurisdiction(s):
United Kingdom
Key definition:
Syndicated facility definition
What does Syndicated facility mean?

A facility under which lenders participate severally ie without liability should another lender fail to honour its obligations. The facility may start out as a bilateral loan but contain provisions enabling the original lender to transfer elements of the loan made to other participants. The facility is usually administered by the agent.

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