Loan Syndication

Loan Syndication - LoanSyndication LoanSyndication

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    Loan Syndication
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    Loan Syndication Two or more bank lenders united by a single set of  legal documents Obligations are not joint but several in nature  Different Commitment amounts  Banks share funding, repayment, certain fees on pro- rata basis
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    Banks’ Motivations Arranging Banks Generating Fee Income Sole vs. joint mandate Participating Banks Generating loan assets Diversification of credit exposure across borrowers,  industries and countries Make loan in markets where they lack origination capabilites
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    Funding Certainty Fully underwritten deal Specific terms and pricing Best efforts underwritten deal To pay higher fees or spread 
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    Lead Arranger Structuring  Prepares Information Memorandum Designing and negotiating the deal with the borrower Distribution - Structures the syndicate in tiers
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Loan Syndication - LoanSyndication LoanSyndication

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