Loan Syndication Agreement Template for Austria

The Loan Syndication Agreement is a sophisticated financing document used when the size, complexity, or risk profile of a loan necessitates participation from multiple lenders. This agreement, governed by Austrian law, establishes the legal framework for a syndicated credit facility, detailing how multiple financial institutions collectively provide financing while sharing the associated risks. It is particularly relevant for large-scale corporate financing, project finance, or acquisition financing where a single lender may not have the capacity or appetite to provide the entire loan amount. The document comprehensively addresses facility terms, lender rights and obligations, security arrangements, administrative provisions, and regulatory requirements specific to the Austrian jurisdiction. It includes mechanisms for loan participation, risk sharing, facility administration, and the transfer of loan participations in the secondary market.

1. Parties: Identifies all parties to the agreement including Borrower(s), Original Lenders, Facility Agent, and Security Agent

2. Background: Provides context of the transaction and summarizes the purpose of the facility

3. Definitions and Interpretation: Comprehensive definitions of terms used throughout the agreement and interpretation rules

4. The Facilities: Details of the loan facilities, including type, purpose, and commitment amounts

5. Purpose: Specified use of the loan proceeds and any restrictions

6. Conditions of Utilisation: Conditions precedent and subsequent for loan drawdown

7. Utilisation: Mechanics and process for requesting and making loan disbursements

8. Repayment: Terms and schedule for loan repayment

9. Prepayment and Cancellation: Voluntary and mandatory prepayment provisions and facility cancellation terms

10. Interest: Interest calculation, periods, and payment provisions

11. Fees: All applicable fees including arrangement, commitment, and agency fees

12. Tax Gross Up and Indemnities: Tax provisions and related indemnification obligations

13. Increased Costs: Provisions for dealing with changes in costs due to regulatory or legal changes

14. Representations and Warranties: Borrower's representations and warranties

15. Information Undertakings: Borrower's obligations to provide financial and other information

16. Financial Covenants: Financial maintenance covenants and related calculations

17. General Undertakings: Borrower's positive and negative covenants

18. Events of Default: Circumstances constituting default and consequences

19. Changes to the Parties: Transfer and assignment provisions

20. Role of the Facility Agent and Security Agent: Rights, obligations, and duties of the agents

21. Sharing Among the Finance Parties: Payment sharing and redistribution provisions

22. Payment Mechanics: Administrative provisions regarding payments

23. Set-off: Rights of set-off and related provisions

24. Notices: Communication methods and contact details

25. Calculations and Certificates: Provisions regarding calculations and evidence

26. Miscellaneous: Various standard provisions including partial invalidity and remedies

27. Governing Law and Enforcement: Choice of Austrian law and jurisdiction provisions