Syndicated Loan Agreement for the United States

Syndicated Loan Agreement Template for United States

A Syndicated Loan Agreement is a complex financial instrument under U.S. law where multiple lenders, led by an administrative agent, collectively provide financing to a borrower. The agreement establishes the terms and conditions of the loan, including interest rates, repayment schedules, security arrangements, and covenant packages. It incorporates federal and state banking regulations, securities laws, and specific industry requirements, while ensuring compliance with U.S. regulatory frameworks.

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What is a Syndicated Loan Agreement?

The Syndicated Loan Agreement is utilized when a borrower requires substantial financing that exceeds the capacity or risk appetite of a single lender. This document, governed by U.S. law, outlines the complex relationship between multiple lenders, the administrative agent, and the borrower(s). It includes detailed provisions for loan facilities, interest calculations, security arrangements, covenant packages, and regulatory compliance requirements. The agreement is particularly relevant for large-scale financing needs such as corporate acquisitions, infrastructure projects, or major business expansions.

What sections should be included in a Syndicated Loan Agreement?

1. Parties: Identifies the administrative agent, lenders, borrower(s), and any guarantors

2. Background/Recitals: Sets out the context and purpose of the loan facility

3. Definitions: Comprehensive definitions of terms used throughout the agreement

4. The Facilities: Details of loan amounts, types, and availability

5. Conditions Precedent: Conditions that must be satisfied before drawdown

6. Repayment Terms: Schedule and mechanics of repayment

7. Interest and Fees: Interest calculation, payment dates, and applicable fees

8. Representations and Warranties: Borrower's statements about its legal and financial condition

9. Covenants: Positive and negative undertakings by the borrower

10. Events of Default: Circumstances constituting default and consequences

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

1. Security: Details of any collateral or security arrangements when the loan is secured

2. Guarantees: Terms of any guarantees provided when guarantors are involved

3. Increased Costs and Tax Gross-Up: Provisions for changes in regulatory costs or tax treatment, typically used in cross-border transactions

4. Market Disruption: Provisions for handling market disruption events in floating rate facilities

What schedules should be included in a Syndicated Loan Agreement?

1. Schedule 1 - Lenders and Commitments: List of lenders and their respective commitments

2. Schedule 2 - Conditions Precedent Documents: Detailed list of required documentation

3. Schedule 3 - Form of Drawdown Request: Template for borrower to request loan disbursement

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

5. Schedule 5 - Repayment Schedule: Detailed amortization schedule if applicable

6. Schedule 6 - Form of Compliance Certificate: Template for periodic compliance reporting

7. Schedule 7 - Security Documents: Forms of security documentation if applicable

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

United States

Publisher

Genie AI

Document Type

Agreement Contract

Cost

Free to use
Relevant legal definitions
Clauses
Industries

Truth in Lending Act (TILA): Federal law requiring clear disclosure of lending terms and standardized information about credit and loan terms

Equal Credit Opportunity Act (ECOA): Federal law prohibiting discrimination in lending practices based on race, color, religion, national origin, sex, marital status, age, or source of income

Bank Secrecy Act (BSA): Federal law requiring financial institutions to assist government agencies in detecting and preventing money laundering

Dodd-Frank Act: Comprehensive financial reform legislation that includes provisions affecting lending practices, risk retention, and consumer protection

Securities Acts: The Securities Act of 1933 and Securities Exchange Act of 1934, which become relevant if the syndicated loan is securitized

State Usury Laws: State-specific regulations governing maximum interest rates and loan charges that can be assessed on loans

UCC Laws: State-specific Uniform Commercial Code provisions governing secured transactions and commercial relationships

OCC Regulations: Office of the Comptroller of the Currency regulations governing national banks and their lending practices

FDIC Requirements: Federal Deposit Insurance Corporation requirements for insured banks participating in syndicated lending

CFPB Regulations: Consumer Financial Protection Bureau regulations protecting consumers in financial transactions

FCPA: Foreign Corrupt Practices Act requirements for international lending transactions to prevent bribery and corruption

Basel III: International banking regulations setting standards for bank capital adequacy, stress testing, and market liquidity risk

FATCA: Foreign Account Tax Compliance Act requirements for foreign financial institutions and certain non-financial foreign entities

Environmental Regulations: Environmental laws and regulations that may affect lending decisions, particularly for projects with environmental impact

Anti-Money Laundering Regulations: Regulations requiring banks to implement programs to detect and prevent money laundering and terrorist financing

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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