Facility Agreement: secured

£50.00 exc VAT

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

 

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Facility Agreement: secured facility agreement

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

Background

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.

Subject to the borrower continuing to comply with the facility agreement, the lender is committed to provide future loan advances to the borrower under the facility. This enables the borrower to borrow money (and start to pay interest on the amount advanced) on an as and when needed basis.  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 term loan facility agreement

This facility agreement is for a secured 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.

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 and assets.  Examples of security documents include:

  • a charge over specified property
  • a charge over shares
  • a debenture, containing fixed and floating charges over all of the borrower’s assets and undertaking

Document features

Features include:

  • 23 clauses and 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 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.

Facility agreement: secured

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