Syndicated Loan Agreement for the Netherlands

Syndicated Loan Agreement Template for Netherlands

A comprehensive financing agreement governed by Dutch law that establishes the terms and conditions for a loan provided by a syndicate of lenders to a borrower. The agreement details the facility amount, interest rates, repayment terms, security structure, representations and warranties, covenants, and events of default. It includes specific provisions required under Dutch law and European regulations, particularly regarding security interests, registration requirements, and enforcement mechanisms. The document also establishes the roles and responsibilities of the facility agent and security agent, and includes provisions for syndicate decision-making and participation transfers.

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What is a Syndicated Loan Agreement?

The Syndicated Loan Agreement is a fundamental document used in large-scale financing transactions where multiple lenders collectively provide funding to a borrower. Under Dutch law, this agreement must comply with specific requirements of the Dutch Civil Code and financial regulations while incorporating European Union directives. The document is typically used for significant financing needs such as acquisitions, project finance, or general corporate purposes where the loan amount requires participation from multiple lenders. It contains detailed provisions regarding facility terms, security interests, guarantees, representations and warranties, covenants, and events of default. The agreement also establishes the administrative framework for the syndicate, including the appointment and duties of the facility agent and security agent, voting mechanisms for lender decisions, and procedures for trading loan participations. The Dutch law context particularly influences provisions related to security rights, registration requirements, enforcement mechanisms, and insolvency scenarios.

What sections should be included in a Syndicated Loan Agreement?

1. Parties: Identification of the Borrower, Original Lenders, Agent, and Security Agent (if applicable)

2. Background: Context of the transaction and purpose of the facility

3. Definitions and Interpretation: Defined terms, construction provisions, and Dutch law-specific interpretations

4. The Facility: Nature, purpose, and amount of the loan facility

5. Conditions Precedent: Documents and conditions required before utilization

6. Utilization: Process and requirements for drawing down the loan

7. Repayment: Terms and schedule for repayment of the loan

8. Prepayment and Cancellation: Voluntary and mandatory prepayment provisions

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

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

11. Tax Gross Up and Indemnities: Tax provisions and related indemnities

12. Increased Costs: Provisions for dealing with changes in law or regulations affecting lenders' costs

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

14. Information Undertakings: Obligations to provide financial and other information

15. Financial Covenants: Financial ratios and tests to be maintained

16. General Undertakings: Positive and negative covenants

17. Events of Default: Circumstances constituting default and consequences

18. Changes to Parties: Transfer and assignment provisions

19. Role of the Agent and Security Agent: Rights, duties, and obligations of the administrative parties

20. Payment Mechanics: Payment provisions, calculations, and set-off rights

21. Set-Off: Rights of set-off and related provisions

22. Notices: Communication methods and contact details

23. Calculations and Certificates: Basis for calculations and form of certificates

24. Partial Invalidity: Severability provisions

25. Remedies and Waivers: Rights and remedies of the parties

26. Amendments and Waivers: Process for modifying the agreement

27. Governing Law and Enforcement: Dutch law as governing law and jurisdiction provisions

What sections are optional to include in a Syndicated Loan Agreement?

1. Security: Required if the loan is secured - details of security structure and enforcement

2. Guarantees: Required if there are guarantors - terms of guarantees and guarantor provisions

3. Subordination: Required if there is subordinated debt - ranking and subordination provisions

4. Bank Accounts: Required if there are specific account requirements or cash control mechanisms

5. Accordion Facility: Optional provision for increasing the facility amount

6. Multi-currency Provisions: Required if the facility can be drawn in multiple currencies

7. Majority Lender Decisions: Required for complex voting arrangements between syndicate members

8. Green Loan Provisions: Required for green loans or sustainability-linked facilities

What schedules should be included in a Syndicated Loan Agreement?

1. Lenders and Commitments: List of lenders and their committed amounts

2. Conditions Precedent Documents: Detailed list of required conditions precedent

3. Utilization Request Form: Form for requesting loan drawdowns

4. Form of Transfer Certificate: Template for transferring loan participations

5. Form of Compliance Certificate: Template for periodic compliance reporting

6. Form of Accession Deed: Template for new parties joining the agreement

7. Timetables: Operational timelines for notices and payments

8. Security Documents: List and copies of security documentation

9. Repayment Schedule: Detailed amortization schedule if applicable

10. Form of Quarterly Financial Statements: Template for required financial reporting

11. Contact Details: List of administrative details for all parties

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Netherlands

Publisher

Genie AI

Document Type

Agreement Contract

Cost

Free to use
Relevant legal definitions
Accession Deed
Account Bank
Additional Lender
Additional Obligor
Affiliate
Agent
Applicable Margin
Arrangers
Assignment Agreement
Authorisation
Available Commitment
Available Facility
Break Costs
Business Day
Commitment
Compliance Certificate
Confidential Information
Default
Default Interest
Defaulting Lender
Disruption Event
Dutch Civil Code
Dutch Security
Effective Date
Event of Default
Existing Lender
Facility
Facility Office
Fee Letter
Finance Document
Finance Party
Financial Indebtedness
Financial Statements
Group
Guarantee
Guarantor
Holding Company
Increased Costs
Interest Period
Interest Rate
Legal Reservation
Lender
Loan
Majority Lenders
Mandatory Cost
Material Adverse Effect
New Lender
Obligor
Original Lenders
Original Obligor
Participating Member State
Party
Permitted Security
Quotation Day
Reference Banks
Relevant Market
Repeating Representations
Replacement Lender
Representative
Screen Rate
Security
Security Agent
Security Document
Security Interest
Selection Notice
Subsidiary
Tax
Tax Deduction
Term
Transfer Certificate
Transfer Date
Unpaid Sum
Utilisation
Utilisation Date
Utilisation Request
VAT
Financial Covenant
Hedging Agreement
Secured Obligations
Security Period
Syndication Date
Parallel Debt
Dutch Financial Supervision Act
Dutch Insolvency Law
Base Rate
Compounded Rate
Lookback Period
Cash Management Agreement
Incremental Facility
Sanctions
Dutch Bank
Central Bank Rate
Backstop Rate
Information Package
Beneficiary
Related Fund
Screen Rate Replacement Event
Resolution Authority
Write-down and Conversion Powers
Bail-in Action
Bail-in Legislation
Clauses
Relevant Industries

Banking & Finance

Infrastructure

Real Estate

Energy

Manufacturing

Technology

Healthcare

Transportation

Telecommunications

Retail

Mining & Resources

Agriculture

Construction

Hospitality

Aviation

Relevant Teams

Legal

Finance

Treasury

Credit Risk

Compliance

Corporate Banking

Syndications

Transaction Management

Portfolio Management

Agency Services

Capital Markets

Documentation

Risk Management

Corporate Development

Investment

Relevant Roles

Chief Financial Officer

Finance Director

Treasury Manager

Legal Counsel

Corporate Lawyer

Loan Officer

Relationship Manager

Credit Risk Manager

Syndications Manager

Transaction Manager

Compliance Officer

Financial Controller

Banking Partner

Finance Associate

Documentation Manager

Portfolio Manager

Restructuring Officer

Agency Manager

Security Trustee

Investment Director

Industries
Dutch Civil Code (Burgerlijk Wetboek): Primary source of Dutch contract law, including Book 3 (Property Law), Book 6 (General Part of the Law of Obligations), and Book 7 (Specific Contracts). Contains provisions on formation of contracts, validity, interpretation, and general principles of Dutch contract law.
Financial Supervision Act (Wet op het financieel toezicht - Wft): Regulates financial institutions and their activities in the Netherlands, including lending activities and requirements for financial institutions participating in syndicated loans.
Dutch Bankruptcy Act (Faillissementswet): Contains provisions regarding insolvency, which are relevant for default scenarios, enforcement of security rights, and ranking of creditors.
Legal Requirements for Registration of Security Rights: Includes requirements for registration of security interests in the Dutch Public Registers (Kadaster) and the Dutch Tax Authorities' Registry (Belastingdienst) for certain types of assets.
EU Capital Requirements Regulation (CRR): European regulation directly applicable in the Netherlands, setting out requirements for financial institutions regarding capital adequacy and risk exposure.
Dutch Implementation of Anti-Money Laundering Directive (Wwft): Implements EU anti-money laundering requirements, including know-your-customer obligations for financial institutions.
Dutch Private International Law Rules: Rules determining the application of Dutch law in international transactions and the recognition of foreign security interests.
Dutch Financial Collateral Arrangements Act: Implementation of EU Financial Collateral Directive, governing financial collateral arrangements in financial transactions.
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