Source: http://suewrightonline.com/loan_documentation_curriculum
Timestamp: 2019-05-27 13:08:12
Document Index: 425422834

Matched Legal Cases: ['ART 2', 'ART 1', 'art 1', 'art 2', 'art 1', 'art 2', 'ART 2', 'ART 1', 'art 1', 'art 2', 'ART 2', 'art 2', 'ART 1', 'ART 2']

Loan Documentation Curriculum | Lexitus
Loan Documentation Curriculum
Lesson 1 A Company’s Overview Debt v equity; capital markets v loan markets; loan agreement structure
Lesson 2 Structural Subordination What is it; what impact does it have on loan undertakings; use of upstream guarantees and locations for due diligence
PART 2 ADMINISTRATIVE PROVISIONS OF THE LOAN AGREEMENT
Lesson 1 General Definitions Including circularity; moving definitions; uncapitalised definitions; and avoiding the traps
Lesson 2 Specific Definitions Including Finance Documents, Material Adverse Effect and Reference Banks
Lesson 3 Financial Indebtedness The definition explained including title financing such as finance leasing and repos
Lesson 4 Drawdown and Repayment Lenders’ rights and obligations; conditions precedent; multicurrency mechanics and prepayment
PART 1 INTEREST
Lesson 1 Interest rates and funding costs - base rate, central bank rates, basel III liquidity ratios and funding costs
Lesson 2 LIBOR Screen rate, base rate, Reference Banks and the future of LIBOR
Lesson 3 Interest Periods Broken funding costs, default interest and penalties and interest periods in revolving credits
Lesson 4 Additional Costs Part 1 The cost of funds and market disruption clauses
Lesson 5 Additional Costs Part 2 The Increased Costs clause
Lesson 6 Withholding Tax Part 1 Withholding tax, grossing up, double tax treaties, gross up and loan transfer, FATCA
Lesson 7 Withholding Tax Part 2 Risk allocation, the clawback clause and loan transfers
PART 2 REPRESENTATIONS AND REPEATING REPRESENTATIONS
Lesson 1 Representations Obligors and Group members; role of representations in risk allocation; litigation, pari passu, litigation and breach of contract representations
Lesson 2 Repeating Representations Hazards, and discussion of which representations to repeat
Stage 2 Key Facts or In Depth Quiz
PART 1 UNDERTAKINGS
Lesson 1 Information Undertakings GAAP and IFRS, frozen and moving GAAP provisions, Auditors’ certificates and other information undertakings, including the obligation to notify of a Default
Lesson 2 General Undertakings including the negative pledge and the no disposals clause
Lesson 3 Financial Covenants Part 1 - relationship with the material adverse change and cross default clauses; review of interest cover, leverage and cash flow ratios
Lesson 4 Financial Covenants Part 2 gearing, liquidity, Tangible Net Worth and Capital expenditure
Lesson 5 Scope of the Agreement Group members, Obligors and Excluded Companies; change of ownership or control of the Company.
PART 2 INTRODUCTION TO EVENTS OF DEFAULT
Lesson 1 Events of Default - The Big Picture Objective versus subjective Events of Default; scope of the agreement; robustness, particularly in view of the cross default clauses, and Events of Default outside the Borrower’s control
Lesson 2 Events of Default – Purpose and Mechanics The role of the Events of Default in; allocating risk, and in giving the Lenders leverage; automatic and non automatic Events of Default; Borrower’s right to remedy an Event of Default which has occurred; and Events of Default and default interest
Lesson 3 Events of Default – Purpose and Mechanics Part 2 Defaults and Events of Default; “Rollover Loans” in a revolving credit facility; effect of disputed Event of Default on acceleration
Stage 3 In depth or Key Facts QuizCompulsory Report
PART 1 EVENTS OF DEFAULT
Lesson 1 “Breach of Contract” Events of Default non payment, failure to meet financial ratios, breach of undertaking and misrepresentation
Lesson 2 Other General Events of Default insolvency, litigation, change of control and illegality
Lesson 3 Cross Default purpose; spiralling effect; cross default v cross acceleration; ways in which the borrower may seek to reduce the impact of the clause
Lesson 4 Material Adverse Change – Arguments for and against
Lesson 5 Material Adverse Change – Wording
PART 2 BOILERPLATE
Lesson 1 The Agent’s Role and the “Boilerplate” fiduciary duties; exclusion clauses, other “boilerplate” clauses, including the pro rata sharing clause, the anti estoppel clause, the jurisdiction clause, and the clause dealing with waivers and amendments
Lesson 2 Transfer Methods assignments, novations, subparticipations (funded and risk) and credit derivatives
Lesson 3 Transferring Secured Loans The options for structuring secured syndicated loans
Lesson 4 The Transfer Clause Borrower concerns; “yank the bank”; confidentiality
Defaulting Lenders - addressing issues which arose during the financial crisis of 2008