Institutional credit operations also include revolving and non-revolving credit options. However, they are much more complicated than retail contracts. They may also include the issuance of bonds or a credit consortium in which several lenders invest in a structured credit product. There are two things I would add:1. Many of these agreements provide for a revolver, a maturity loan and credits. There is usually a formula for determining how much the borrower can use the revolver at any given time (often based on inventory percentages and receivables). In many cases (although it is usually not in the Cov lite period), there is also a commitment fee for the non-fired part of the revolver.2. There may also be a schedule for amortizing the principal of loans (instead of a lump sum at the end of the term). These principal depreciations may also result in a default or other credit event. Hunter, do you agree? Institutional credit agreements usually include a lead underwriter. The songwriter negotiates all the terms of the credit transaction. The conditions of sale include the interest rate, the terms of payment, the duration of the credit and any penalty in case of late payment.
Sub-writers also facilitate the integration of several parts into the loan as well as all structured tranches that may have their own individual maturities. LSTA`s Complete Guide to credit agreement is the most comprehensive manual that covers all aspects of the credit agreement, from negotiation and execution to managing the process throughout the term of the loan. The definitive guide to managing the entire Lawrence credit agreement process – I think it`s worth mentioning that the revolvers (RC), which you`re talking about, which are governed by a credit base, are THBs. You have very specific guarantees (ar or inventory. see HCA for an example). This effectively gives each term loan holder (TL) a second right of pledge or the residual value of the RA or inventory. These are not incredibly frequent. However, this is changing (see The Solo Cup), as it is an inexpensive method of financing for heritage businesses. Also check your credit agreements and indentures so that you don`t run the Greenshoe language. If the credit agreement or indenture allows a greenshoe or carve-out language, you should also look for the most-favoured-nation (MFN) language. Also called Yield Protection / Maintenance. See Jarden (JAH) for a very good example.
Inter-creditor agreements: If the loan has a second pledge debt (drag bonds. I guess one could say that there will also be an agreement between the creditors on most of the first pledge rights. .