European Leveraged Finance Customer Alert Series
Leveraged loan agreements form key areas of money structures, balancing loan provider security against permitting the debtor to operate its company relating to its business strategy. In recent years, the size of such loan agreements has increased significantly, and White & Case investigates the causes behind this.
To give you some context, think about the after. The present LMA-form senior multicurrency term and revolving facilities contract for leveraged purchase finance deals (senior/mezzanine) (excluding footnotes) is 314 pages very very very long. A sample leveraged loan contract is 205 pages very very long whereas an example equivalent is 473 pages very very very very long. This really summary that is brief exactly just just how in market examples (and with time), the size of loan agreements has grown dramatically. This is often caused by wide range of reasons, several of that are talked about below.