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View the related practice notes about Club loan

Introductory guide to lending

Introductory guide to lending A lending transaction is simply the making of a loan of money by a lender to a borrower. This can range from a small overdraft from a bank to a customer to secured, syndicated facilities made to make an acquisition of a multi-national group. This Practice Note provides an introductory guide to lending transactions. It discusses the different types of loan transaction and provides an overview of the structure of a typical loan transaction, before discussing the documentation involved in loan transactions and security, quasi-security and intercreditor issues. It outlines some key legal issues that can arise on lending transactions before providing an overview of specialist finance transactions, including project finance, real estate finance, acquisition finance and asset finance. This Practice Note provides an introduction to loan transactions in a commercial context. It does not cover consumer lending. Loan transaction toolkit Our Loan transaction toolkit is an introductory resource for junior lawyers and provides an overview of each phase of a loan transaction and...

Bilateral, syndicated and club arrangements

Bilateral, syndicated and club arrangements One of the key features used to categorise loans is the number of lenders involved. A loan involving one lender is known as a 'bilateral loan'. A loan involving more than one lender may be a 'syndicated loan' or be referred to as a 'club loan'. Multiple lenders can also be indirectly involved in the same loan by way of sub-participation. This Practice Note explains the key features of bilateral loans, syndicated loans and club loans. Bilateral loans A bilateral loan is a loan involving a single lender. There may be a single borrower or multiple obligors involved, ie the borrower and other companies in the borrower's group as guarantors and/or security providers. Bilateral loans are normally used for loans of relatively small amounts and where less complex financing arrangements are required (eg a simple overdraft or term loan). Where the borrower requires a larger loan, a single lender may be unwilling or unable to advance the full amount required by...