The LSTA has published the new Form of Incremental Facility Amendment. Incremental facilities may take the form of tranches of an existing facility (typically referred to under the credit agreement as an “accordion” or “increase”) or tranches of an entirely new facility (typically referred to under the credit agreement as a “new incremental tranche” or similar term).
This form contemplates the creation of a new tranche of loans or an increase in an existing tranche. It sets out the conditions precedent to the funding of the new loans and is executed by the borrower, administrative agent, guarantors, and lenders that will provide the new 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.