Parallel Loan Agreement Template for Austria

The Parallel Loan Agreement is utilized in complex financing transactions where multiple lenders wish to provide separate but coordinated loans to a single borrower while maintaining individual creditor relationships. This structure is particularly common in Austrian cross-border financing transactions where direct syndication may be impractical due to regulatory or tax considerations. The agreement establishes parallel debt obligations that are automatically synchronized in terms of repayment, interest, and other key terms. It includes comprehensive provisions for loan administration, security sharing, and inter-creditor relationships, all structured in compliance with Austrian law. This document is essential for projects requiring substantial funding from multiple sources while ensuring efficient coordination and equal treatment of lenders.

1. Parties: Identification of all parties to the agreement including all parallel lenders and the borrower

2. Background: Context of the parallel loan arrangement and relationship to other financing documents

3. Definitions: Definitions of terms used throughout the agreement, including financial terms and references to related agreements

4. The Facilities: Details of the parallel loan facilities, including amounts, currencies, and purpose

5. Conditions Precedent: Conditions that must be satisfied before the loans can be drawn

6. Drawdown: Procedures and requirements for requesting and making loan disbursements

7. Interest: Interest rates, calculation methods, and payment provisions

8. Repayment: Terms and schedule for repayment of the parallel loans

9. Prepayment: Provisions for voluntary and mandatory prepayment of the loans

10. Tax Provisions: Allocation of tax liabilities and gross-up provisions

11. Representations and Warranties: Standard and transaction-specific representations and warranties

12. Covenants: Positive and negative covenants applicable to the borrower

13. Events of Default: Circumstances constituting default and consequences

14. Changes to Parties: Transfer and assignment provisions

15. Administration: Loan administration procedures and responsibilities

16. Payments: Payment mechanics and procedures

17. Notices: Communication requirements and contact details

18. Governing Law and Jurisdiction: Choice of Austrian law and jurisdiction provisions