Bridge Loan Agreement Template for Denmark

The Bridge Loan Agreement serves as a critical financing tool in situations where immediate funding is required but permanent financing is not yet available. This document type is commonly used in corporate acquisitions, real estate transactions, or other business opportunities requiring quick access to capital. Under Danish law, the agreement must comply with specific regulatory requirements including the Danish Contracts Act (Aftaleloven), the Financial Business Act, and relevant EU regulations. The Bridge Loan Agreement typically includes detailed provisions on loan disbursement, interest calculation (following Danish Interest Act requirements), repayment terms, security arrangements if applicable, and most importantly, the mechanism for transitioning to permanent financing. It's particularly relevant in time-sensitive transactions where traditional financing processes would take too long to complete.

1. Parties: Identification of the lender and borrower, including registration numbers and addresses

2. Background: Context of the bridge loan, including the purpose and the anticipated permanent financing or liquidity event

3. Definitions: Key terms used throughout the agreement, including financial definitions and specific Danish law concepts

4. The Facility: Details of the loan amount, purpose, and availability period

5. Conditions Precedent: Documents and conditions required before drawdown

6. Drawdown: Process and requirements for accessing the loan funds

7. Interest: Interest rate, calculation periods, and payment dates in compliance with Danish Interest Act

8. Repayment: Repayment terms, including mandatory prepayment upon permanent financing

9. Exit Mechanism: Specific provisions regarding refinancing or repayment from permanent financing

10. Representations and Warranties: Standard and transaction-specific confirmations from the borrower

11. Covenants: Borrower's obligations during the loan period

12. Events of Default: Circumstances allowing acceleration of the loan

13. Costs and Expenses: Allocation of transaction costs and ongoing expenses

14. Notices: Communication requirements and contact details

15. Assignment and Transfer: Rules for transferring rights under the agreement

16. Governing Law and Jurisdiction: Confirmation of Danish law and jurisdiction