An introduction to commitment letters issued by lenders to borrowers, including the terms contained in commitment letters on which the lenders are prepared to undertake to arrange the financing and make loans.
A Practice Note providing an overview of financing an acquisition by debt using a loan from a bank or other financial institution. This Note also gives a description of the methods of acquiring a business through an asset acquisition, stock acquisition, or merger.
We bring big news on the ESG front, report on mixed results in the secondary, and give you an important update on two steps taken toward LIBOR transition by Fannie and Freddie.
Coming off a strong finish to 2019 where the S&P/LSTA Leveraged Loan Index (LLI) produced an eight-month best 1.1% return, the loan market began 2020 right where it left off – on fire. Through the first three weeks of the new year, prices in the secondary rallied more than 60 basis points as the lower-end […]
Appetite for risk in the U.S. leveraged loan market increased in January until concerns over the coronavirus put investors on their heels according to the S&P/LSTA Leveraged Loan Index Monthly Review for January.
The Loan Syndications and Trading Association (the “LSTA”), the advocacy and education association for the $1.2 trillion institutional leveraged loan market in the United States, today released its inaugural Environmental, Social and Governance (“ESG”) Questionnaire to facilitate enhanced information-sharing on the part of corporate borrowers seeking capital in the marketplace. This represents the first time […]
Companies and their investors are increasingly focused on how environmental, social and governance (ESG) factors impact their businesses. For many investors, being aware of the ESG risks a company faces and the way in which these risks are being addressed—is critical to understanding a company’s broader risk profile. Moreover, end investors are regularly requiring asset […]
This week, we start out with good news and get better from there! First, our initial analysis suggests that the proposed Volcker Rule acknowledges that CLO debt securities are not ownership interests – and this should reduce CLO risk from the Kirschner case. (But there still are big Kirschner fish to fry.) Second, CLO managers and equity have been […]
Recently, the LSTA took the next step in its efforts to educate market participants on replacement benchmarks by distributing a draft “concept credit agreement” referencing a compounded average of daily SOFRs calculated in arrears (“Compounded SOFR in Arrears”). The key points to highlight in the draft are discussed, but readers should bear in mind that […]
ESG and sustainability are two buzzwords that crop up more and more in the financial markets – the loan market included. According to Refinitiv LPC, $167 billion in green loans and sustainability linked loans came to the global loan market in 2019. Of that activity, more than $135 billion in volume represents sustainability linked loans.
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Membership in the LSTA offers numerous benefits and opportunities. Chief among them is the opportunity to participate in the decision making process that ultimately establishes loan market standards, develops market practices, and influences the market’s direction.