Facility Agreement: secured

When do I 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

What are the key features?

• 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

What else do I need to know?

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

What other documents are available?

For a form of unsecured facility agreement, see

• Facility Agreement: unsecured

For forms of unsecured and secured loan agreements, see

• Loan Agreement: unsecured
• Loan Agreement: secured