A Guide To The Loan Market Association Documentation For Investment-Grade Borrowers April 2013, supplemented June 2014

This Guide explains the LMA investment grade loan facility documentation with particular emphasis on the advantages and disadvantages for borrowers and points for negotiation.

This Guide explains the LMA investment grade loan facility documentation with particular emphasis on the advantages and disadvantages for borrowers and points for negotiation. The 2013 Guide is subject to a June 2014 Supplement to reflect changes subsequently made by the LMA to their investment grade documentation.

The guide is published by the ACT and Slaughter and May and was sponsored and produced by Slaughter and May (www.slaughterandmay.com) for the ACT. It is in three parts:

• Part I is an overview of the main commercial issues for corporate treasurers in relation to the Investment Grade Agreement. This includes the LMA’s Finance Party Default and Market Disruption Provisions (the “Market Conditions Provisions”), in section 7, which cross-refers to more detailed comments in Part II.
• Part II is a commentary on the provisions of the Agreement.
• Part III covers some of the LMA ancillary documentation, including the Confidentiality Letters.