News Updates

Updated the gross tax clause and corresponding timetables to reflect the entry into force of the CMR double taxation treaty in September 2010. The LMA has made a number of changes to its LF agreement, but has not yet updated its investment level agreements. LMA`s approach to updating its facilities In accordance with the market disturbance clause, in the event of a market disruption, each lender`s actual financing costs are used to calculate the interest rate on its loans instead of LIBOR. In this clause, insert a “LIBOR floor” so that no lender suffers from this clause if its financing costs are lower than LIBOR. The agreement on LFs now contains this word. Some of these terms appear in optional drivers, which can be added to investment degree agreements, but none are in basic investment level agreements. We have published a note entitled “Documentary implications of the end of the Brexit transition period for LMA facility Documentation” (“Brexit Note”) which consolidates and updates previous Brexit notes published in September 2016 and April 2019, as well as two EU legislative references for the target tables. Amend the “reference bank” part of the LIBOR definition so that LIBOR is the average of the interest rates at which reference banks report being able to borrow funds on the interbank market on the relevant date. In the corresponding definition, investment degree agreements always refer to the interest rates of the reference banks.” for the offer of deposits” and not for their actual financial costs. The [basic] reference rate of the reference bank listed in the LF Agreement (defined in the LIBOR definition) is an average effective reference rate.

This corresponds to the calculation of the LIBOR screen rate. Add definitions of “material adverse effects” and in the change of control clause for “control” and “acting together”. Definitions are empty in investment level agreements. Definitions of these terms in the FA Agreement (which are not new) may not always be appropriate and often need to be simplified when used outside of leveraged financing. However, they are a good starting point. Certain conditions to be considered to be taken into account in the context of the LF agreement We have published a revised draft agreement on the exchange rate facility (retrospective without change of observation); new agreement on the rate change in the project (retrospective with observation lag); a revised commentary on tariff change agreements; the roadmap for tariff exchange agreements; and the RFR conditions to be used in addition to the revised replacement of the screen throughput language. Add to the warranty clause the phrase “warranty intent”. . . .

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Interview with Ezra Shihan – Part 1

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