Legal & Documentation

What you need to know about originating and trading loans may be found here.  The basics of credit agreements, trading loans on standard LSTA agreements, and analysis of legal and regulatory trends are discussed.

Level 1

LSTA University Level 1
  • Practical Law - Acquisition Finance Overview

    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.

  • Practical Law - Commitment Letters Overview: Lending

    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.

  • 8 Things You Need to Know About Sustainable Finance

    While the majority of sustainable finance activity has been on the equities side, the fixed income markets have also seen the development of green and sustainability linked products. On the loans side, the US loan market saw its first green loans and sustainability linked loans in 2018. Here are eight things you need to know about loans in the ever-changing world of sustainable finance.

Level 2

LSTA University Level 2
  • LSTA's 2020 KYC Initiative

    For our members who are familiar with the LSTA’s KYC Guidelines, “Know Your Customer Considerations for Syndicated Lending and Loan Trading” (“KYC Guidelines”) we have news to share with you. Although several years have passed since the KYC Guidelines were first published in 2016, many LSTA bank members still seem to struggle to adhere to them and continue to perform KYC diligence on loan market participants which far exceeds U.S.regulatory requirements.

  • Sustainability Linked Loan Principles (SLLP)

    Sustainability linked loans aim to facilitate and support environmentally and socially sustainable economic activity and growth. The Sustainability Linked Loan Principles (SLLP) have been developed by an experienced working party, consisting of representatives from leading financial institutions active in the global syndicated loan markets.

  • Green Loan Principles

    The green loan market aims to facilitate and support environmentally sustainable economic activity.  The Green Loan Principles (GLP) have been developed by an experienced working party, consisting of representatives from leading financial institutions active in the syndicated loan market, with a view to promoting the development and integrity of the green loan product.

  • The Rise of Sustainability Linked Loans Article

    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.

Level 3

LSTA University Level 3
  • Demystifying the LSTA's Draft SOFR "Concept Credit Agreement"

    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 the draft is subject to evolution.

  • Sustainability-Linked Loans: Financing the Green Transition

    This practice note provides an overview of sustainability-linked loans (SLL). Sustainability-themed debt instruments represent one response of the financial community to the need to channel capital towards facilitating a carbon transition.  A Lexis Practice Advisor Practice Note by Amara Gossin, Barclays and Robert Lewis, Sidley Austin.

  • An Overview of the Syndicated Loan Market: Lending & Secured Finance 2019

    This 7th edition provides a global analysis of common issues in lending and offers practical cross-border insight into lending and secured finance in 51 countries and is divided into two main sections. The first section includes 28 chapters which discuss different areas of secured lending and finance and related topics, including a chapter submitted by the LSTA (which is found above the image) which provides an overview of the syndicated loan market.  The second section includes the Country Q&A Chapters, each of which addresses issues arising under the laws and regulations of lending and secured finance in one of 51 different jurisdictions around the globe.  The online version of the 7th edition can be found by clicking on the book. 

    2019 GLG

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LSTA Newsletter – February 14, 2020

This week, we start off talking about how “loans as securities” might morph into “loans as direct loans”. On a related(ish) note, we also discuss direct lending trends. We dig into LBO trends, looking at now (2019) and then (2007). And, finally, we ponder the evolution to SOFR (and, specifically, cash spread adjustments).

LBOs: Less Leverage? More Flex!

An eternal question is “How do the current crop of leveraged loans compare to the 2007 vintage?” Today we have an answer. Covenant Review recently compared recent jumbo LBOs to their pre-crisis counterparts

Quarterly Bankruptcy Roundup

This week Rich Levin of Jenner & Block once again presented his quarterly review of recent court decisions of interest and importance to the lending and bankruptcy world.

LIBOR & SOFR: Spread Adjustments

Folks that know LIBOR is likely to end soon after December 2021 probably also know that SOFR, the likely replacement for USD loans, is a different kind of rate. While LIBOR theoretically includes an element of bank credit risk, SOFR is an overnight risk free rate.

Direct Loans: A Look Into The Future?

We’ve been closely following a case, Kirschner v. JP Morgan, which raises the issue of whether broadly syndicated term loans (“BSLs”) are subject to the securities laws.