Facility Agreement: unsecured loan facility agreement
Unsecured facility agreement for a corporate borrower – Loan facility agreement
BackgroundÂ
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.
About this Facility Agreement
This facility agreement is for an unsecured loan facility of to a maximum fixed amount to a corporate borrower. It is suitable for a borrower which is incorporated in England and Wales.
Document features
Features include:
- 23 clauses and 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
- on a single repayment date or in instalments
- Undertakings to the borrower, including the provision of information to the lender and prohibition on granting security and additional borrowings
- Events of default
Explanatory guidance
As with all of our document templates, your purchase will include access to clear explanatory guidance on the document and its use.
All Paper Rock legal templates are written by highly qualified English lawyers that are currently practising in the field of commercial and corporate law. The templates you download here reflect the same quality as if you’d instructed our lawyers to draft them for you. They also write all our document descriptions so you can rest assured every bit of information is legally accurate up to date.
Whatever your method of purchase, there is no limit to the number of times you can download your templates. However, many customers prefer to invest in an annual subscription. This offers exceptional value with unlimited downloads from our entire document library.
The Paper Rock team is available to answer questions via Live Chat during UK business hours. When live chat is unavailable, email support@paperrock.com. We aim to respond to your emails within a 24-hour period. We also encourage you to ask questions via our social channels.Â