Loan Agreement Nuggets

This part of the Library contains the nuggets relating to the core loan agreement. The agreement which is used for the purpose of this section of the library is the unsecured, investment grade, Loan Market Association recommended form for a term loan. Each of these nuggets is a maximum of 10 minutes long, to enable you to fit them in easily. Each nugget ends with a short quiz (5 questions at most) to test your understanding.

The nuggets start with some general topics, and go on to work through each clause in the loan agreement, with concise explanations of the clauses and the issues. The nuggets are divided into groups as set out below. If you are registered to use the library, you will be able to access the nuggets by going to the group of nuggets you are interested in, then locating and clicking on the description of the particular nugget you are looking for. That will open a window, which will quickly show the first slide of the presentation. Have your headphones or speakers turned on and ready. If the presentation does not start automatically, you will find the play and pause buttons at the bottom of the window.

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The groups of nuggets are

  • General Issues (including an introduction - dealing with the borrower's financing options and their key concerns about the loan agreement, structural subordination, the scope of the agreement and defaulting lenders)
  • Administrative Provisions (covering the definitions, the concept of "Financial Indebtedness", the drawdown and repayment provisions, interest, withholding tax and additional costs)
  • Representations (including repeated representations)
  • Undertakings (including information undertakings, general undertakings and financial covenants)
  • Events of Default (including the big picture - highlighting key issues - the purpose and mechanics of the clause, the general events of default, the cross default clause and the material adverse change clause)
  • Boilerplate (including the role of the Agent, the methods of transferring loans under English law, transferring secured loans and the transfer clause)

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