Why use a facility agreement?

A facility agreement is an arrangement under which a lender agrees to provide one or more loans to a borrower for a period of time and up to specified maximum amount. A facility agreement may be unsecured or secured. The facility (if “committed, which means that the lender is committed to provide future loan advances to the borrower under the facility) will enable the borrower to borrow money (and start to pay interest on the amount advanced) when needed. In exchange for the commitment to lend money when requested, the lender is often paid a commitment fee equal to a percentage of the undrawn facility.

When do I use this document? for the grant of both a put option and call option over shares in a private limited company so that both the buyer has an option to purchase the shares and the seller has an option to sell the shares What are the key features? 24 clauses over 16 pages grant of the put and call options, with related definitions of option shares, exercise conditions and exercise periods put option exercise and form of exercise notice call option exercise and form of exercise notice mechanics for sale and purchase of option shares warranties and undertakings from the seller What else do I need to know? The principal matters which the parties to a put and call option agreement will need to negotiate include: option shares: the number of option shares exercise conditions: whether either option exercise is subject to satisfaction of any pre-conditions exercise periods: the time periods during which the seller may exercise the put option and the buyer may exercise the call option exercise price: the price payable for the shares What other docs are available? For alternative option agreements over shares, see: Call Option Agreement – shares Put Option Agreement – shares

Facility Agreement: unsecured

Name: Loan facility agreement - Paper Rock Docs
SKU: FIN003.001
Price: 50.00 GBP
Availability: InStock

Facility agreement for an unsecured loan facility to a corporate borrower which is incorporated in England and Wales, to be available to be drawn during an availability period and repayable on a fixed repayment date.

for an unsecured loan facility to be available for drawing during an availability period
for a borrower which is a company incorporated in England and Wales

What are the key features?

23 clauses and two schedules over 14 pages
mechanism for the borrower to request advances, subject to satisfaction of conditions precedent
regular interest payments at either fixed or floating interest rate by reference to specified bank’s base rate of interest
repayment of all loans on a fixed repayment date, with borrower able to prepay in whole or in part
provision for an arrangement fee and facility commitment fee
undertakings from the borrower, including to provide information to the lender and prohibition on granting security and additional borrowings
events of default, leading to the lender having the right to stop further advances and demand immediate repayment

What other documents are available?

For a form of secured facility agreement, see

Facility Agreement: secured

For forms of unsecured and secured loan agreements, see

Description

When do I use this document?

for the grant of both a put option and call option over shares in a private limited company
so that both the buyer has an option to purchase the shares and the seller has an option to sell the shares

What are the key features?

24 clauses over 16 pages
grant of the put and call options, with related definitions of option shares, exercise conditions and exercise periods
put option exercise and form of exercise notice
call option exercise and form of exercise notice
mechanics for sale and purchase of option shares
warranties and undertakings from the seller

What else do I need to know?

The principal matters which the parties to a put and call option agreement will need to negotiate include:

option shares: the number of option shares
exercise conditions: whether either option exercise is subject to satisfaction of any pre-conditions
exercise periods: the time periods during which the seller may exercise the put option and the buyer may exercise the call option
exercise price: the price payable for the shares

What other docs are available?

For alternative option agreements over shares, see:

Explanatory Guides

As with all of our document templates, your purchase will include access to clear explanatory guidance on the document and its use.

£50.00 exc VAT

Updated by a lawyer on 04/09/2024

Updated By a lawyer on 01/05/2023

Create your document in 3 Easy Steps

“I have worked in legal and business affairs for over 25 years and need access to a wide range of corporate and commercial legal precedents. Paperrock is a refreshing source of high-quality legal templates. Superb value for money.”

Amanda | Bannister Creative

“It’s hard to find legal documents on the internet you can really trust. Knowing an expert lawyer has drafted what I need, gives my business the edge and gives me peace of mind.”

Facility Agreement: unsecured

When do I use this document?

What are the key features?

What other documents are available?

When do I use this document?

What are the key features?

What else do I need to know?

What other docs are available?

Explanatory Guides

As with all of our document templates, your purchase will include access to clear explanatory guidance on the document and its use.

Create your document in 3 Easy Steps

PaperRock offers affordable, legal document templates, written by experienced and expert lawyers, trusted by businesses across the UK and beyond. No hidden charges or trial sign-ups are required to complete your document.

“I have worked in legal and business affairs for over 25 years and need access to a wide range of corporate and commercial legal precedents. Paperrock is a refreshing source of high-quality legal templates. Superb value for money.”

Amanda | Bannister Creative

“It’s hard to find legal documents on the internet you can really trust. Knowing an expert lawyer has drafted what I need, gives my business the edge and gives me peace of mind.”

Elle, Founder | Winslow skincare & aesthetics.

“As an SME Paperrock saves us the legal fees we’ve previously had to spend. In these challenging times that's a big help. Great products and support.”

Giles, MD | Boniti Ltd.

Facility Agreement: unsecured

When do I use this document?

What are the key features?

What other documents are available?

When do I use this document?

What are the key features?

What else do I need to know?

What other docs are available?

Explanatory Guides

As with all of our document templates, your purchase will include access to clear explanatory guidance on the document and its use.

Related Articles

Create your document in 3 Easy Steps

PaperRock offers affordable, legal document templates, written by experienced and expert lawyers, trusted by businesses across the UK and beyond. No hidden charges or trial sign-ups are required to complete your document.

“I have worked in legal and business affairs for over 25 years and need access to a wide range of corporate and commercial legal precedents. Paperrock is a refreshing source of high-quality legal templates. Superb value for money.”

Amanda | Bannister Creative

“It’s hard to find legal documents on the internet you can really trust. Knowing an expert lawyer has drafted what I need, gives my business the edge and gives me peace of mind.”

Elle, Founder | Winslow skincare & aesthetics.

“As an SME Paperrock saves us the legal fees we’ve previously had to spend. In these challenging times that's a big help. Great products and support.”

Giles, MD | Boniti Ltd.

Start typing and press enter to search