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 Wh|


2
 A loan provided by two or more banks under
single loan agreement and common terms and
conditions
 One or more arranging banks (ࣚMandated Lead
Arrangersࣛ or ࣚMLAsࣛ)
 Various roles are divided between the MLAࣛs :
Book Runner Banks
Road-Show Organizing Bank/s
Information Memorandum Bank
Signing Ceremony Bank
Agent Bank
Publicity Bank
 Wh |




 Risk Diversification

 Relationship Management

 Yield Enhancement

 Large Amount can be raised quickly

 - |

|



 -erm Loan
 Revolving Credit Facility
 Standby Loan or Credit
 Multi-Currency
 Secured / Unsecured
 Multi--ranche
 Amortizing / Bullet Repayment
 Indicative / Underwritten / Best Efforts
 ‰




|



 Discuss funding requirements with potential
arrangers i.e. Relationship Banks

 Ask for Bids ࣗ Indicative / Fully Underwritten Offers

ࣞ(RFP)ࣟ

 Select the most suitable bid and appoint

ࣞArranger/sࣟ

 Assist arranger with syndication process

 Closure of Syndication / Signing

 -|h

ü Borrower : ࣞABC Ltd.ࣟ

ü Mandated Lead Arrangers: ࣞXࣟ Bank, ࣞYࣟ Bank, ࣞZࣟ Bank
ü Facility : -erm Loan Facility
ü Facility Amount : USD 250 mio
ü Facility Agent : ࣞZࣟ Bank
ü Purpose : -o finance capex under RBI guidelines
ü Availability Period : -hree (3) months from signing date
ü Repayment/Final Maturity: 61 months from drawdown date or the
weighted average draw-down date
ü Interest Period : 1, 3, or 6 months
ü Interest Rate : USD LIBOR + Margin
ü USD LIBOR : Rate on Reuter screen page ࣞLIBOࣟ at
11:00 am London time
 -|h J

 Interest Margin : 200 bps per annum
 Arrangement Fee : 125 bps flat on total facility amount
 Commitment Fee : Waived
 Default Interest Rate : 2% above the interest rates on
amounts due and unpaid
 Facility Agency Fee : USD 10,000 per annum
 Legal Fees & Other Expenses : Capped at USD 50,000 or Actuals
 Voluntary Prepayment : On interest reset date with 5 business
daysࣛ prior written notice by borrower
 Conditions Precedent : M&A, Executed Financing Documents,
Board Resolution, Legal Opinion etc.
 Representations & Warranties : Status, Power & Authority, No
Litigation, No Default, No Violation of
Law, No material adverse change, etc
 -|hJ

 Undertakings : Positive and Negative
 Financial Covenants - Net Worth;
- -otal Debt / Net Worth;
- -otal Debt / EBID-A;
- EBID-A / Interest Expense;
- Adjusted EBID-A / Debt Service;
 Event of Default : Failure to Pay, Breach of Financial
Covenants, Reps & Warranties,
Undertakings, Insolvency, Cross-
Default, Material Adverse Change, etc.
 Market Fle : Change in terms i.e. structure, amount,
pricing prior to closure of syndication
 Clear Market : No parallel deal in the market
 Governing Law : English Law
 | |-
-- 
º

º 

X
   X     

Negotiate term Agree bank list Commitments  Agree Signing

sheet & received documentation
Prepare
mandate letter with
information Negotiate
participants
Mandate package Documentation
awarded
 Launch of
Credit Process syndication
Arrange Road
Shows
 |


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