September 30, 2021 - by Bridget Marsh. Today the LSTA published the Exposure Draft of the LSTA Form of Revolving Credit Facility (the “Revolver”). The Revolver was first published in 2017 around the same time as the publication of the second edition of The LSTA’s Complete Credit Agreement. The Revolver is the first complete credit agreement published by the LSTA.
As you will see, the changes relate, for the most part, to the letter of credit related provisions, the LIBOR transition, and language included in LSTA Market Advisories that have been published in the recent past. We initially worked with our member, Michael Avidon of Moses & Singer LLP, who brought it to our attention that we needed to bring the letter of credit related language in the Revolver up-to-date. We then included changes to reflect hardwired fallback language and also took the opportunity to include a few more edits to bring the entire document up-to-date (for example, the draft now includes the bail-in language with post-Brexit changes, the acknowledgment regarding any supported QFC, and ERSIA updates).
We have also been working to update the LSTA’s Model Credit Agreement Provisions and plan to circulate a revised draft of that document next month. The MCAPs will include additional changes, such as the Erroneous Payment Provision, which have not been included in the Revolver.
We would also like to thank Chris McDermott and Jeff Nagle of Cadwalader for serving as external counsel on this project and providing excellent advice. Please find here a revised draft of the Revolver land here a blacklined version which shows the changes made to that 2017 Form. We plan to publish this document in final form in approximately four weeks.