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View the related practice notes about Debt pushdown

Security and guarantees on acquisition finance transactions

Security and guarantees on acquisition finance transactions This Practice Note covers: • aims when taking security and guarantees on an acquisition finance transaction • the common structure of the security and guarantee package for senior, second lien and mezzanine lenders in acquisition finance transactions • issues relating to guarantees such as the guarantor coverage test • security package on transactions with different structures, and • issues that arise when negotiating the security and guarantee package For an introductory guide to acquisition and leveraged finance, see Practice Note: Introductory guide to acquisition finance. For a glossary of commonly used terms and jargon, see: Glossary of acquisition finance terms and jargon. See also Practice Note: Best Practice Guide for Term Sheet Completeness—Explainer—this provides a brief explanation of terms and jargon used in the Best Practice Guide for Term Sheet Completeness, published by the Loan Market Association and European Leveraged Finance Association in November 2020. Aims when taking security and guarantees on an acquisition finance transaction The exact structure of...

Glossary of acquisition finance terms and jargon

Glossary of acquisition finance terms and jargon This glossary explains many of the terms commonly used in the leveraged finance market. Terms contained in the definitions themselves that are in bold are defined elsewhere in the glossary. Please refer to the main Banking & Finance Glossary for additional banking terms. Acquisition finance glossary—A Acceleration Acceleration refers to the taking of a formal step by the agent on the instructions of the majority lenders following an event of default such as demand for early repayment of the loan. See Practice Note: Accelerating a loan for more information. Accordion feature/accordion facility An accordion, or incremental debt feature, refers to a mechanism in the facilities agreement under which, provided certain conditions are met such as pro forma compliance with a leverage test, lenders under the facilities agreement who wish to do so can lend additional debt. The terms of the additional debt will typically be documented in an increase notice. An accordion or incremental debt flexibility...