Facility agreement for a secured 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
Use this document:
- for a secured loan facility to be available for drawing during an availability period
- for a borrower which is a company incorporated in England and Wales
The security would need to be created and governed by a separate security document between the borrower and the lender, depending on the nature of the secured property or assets. Examples of security documents include:
- a charge over property
- a charge over shares
- a debenture, containing fixed and floating charges over all of the borrower’s assets and undertaking
Key features include:
- 23 clauses and two schedules over 15 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
Alternative loan and facility agreements
For a form of unsecured facility agreement, see Facility Agreement: unsecured. For forms of unsecured and secured loan agreements, see Loan Agreement: unsecured and Loan Agreement: secured.
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