syndicated loan

syndicated loan
A credit facility granted by more than one bank to a borrower or associated borrowers under the terms of one agreement.
Syndication is the process by which one bank "sells" a portion of its debt to a syndicate of lenders, so reducing its own exposure but at the same time reducing its reward. An agent bank is appointed to liaise with the borrower on behalf of the members of the syndicate to receive repayments and distribute them in the correct portions to the additional lenders.
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USA
A credit facility granted by more than one bank to a borrower or associated borrowers under the terms of one loan agreement.
syndicationis the process by which one bank "sells" a portion of its debt to a syndicate of lenders and reduces its own exposure. An agent bank is appointed to interact with the borrower on behalf of the members of the syndicate, to facilitate borrowings, receive repayments and distribute them in the correct portions to the additional lenders and to administer the loans.

Practical Law Dictionary. Glossary of UK, US and international legal terms. . 2010.

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Look at other dictionaries:

  • Syndicated loan — A syndicated loan (or syndicated bank facility ) is a large loan in which a group of banks provide funds for a borrower, usually several but without joint liability. There is usually a lead bank or group of banks (the Arranger/s or Agent/s ) that …   Wikipedia

  • syndicated loan — A large Eurocurrency loan from a group of international banks. Bloomberg Financial Dictionary * * * syndicated loan syndicated loan ➔ loan1 * * *    A large loan arranged by a group of banks that form a syndicate, headed by the lead manager …   Financial and business terms

  • syndicated loan — syndicated bank facility …   Accounting dictionary

  • Syndicated Loan — A loan offered by a group of lenders (called a syndicate) who work together to provide funds for a single borrower. The borrower could be a corporation, a large project, or a sovereignty (such as a government). The loan may involve fixed amounts …   Investment dictionary

  • syndicated facility — United Kingdom A loan or other credit facility provided by more than one lender to a borrower (or associated borrowers) under the terms and conditions of one facility agreement. A syndicated loan is a loan provided under a syndicated facility but …   Law dictionary

  • syndicated — syndication/syndicated United Kingdom The term has more than one meaning depending on the context in which it is used: • In the context of a syndicated loan, the process by which one lender sells a portion of its debt to a syndicate of lenders,… …   Law dictionary

  • syndicated bank facility — syndicated loan A very large loan made to one borrower by a group of banks headed by one lead bank, which usually takes only a small percentage of the loan itself, syndicating the rest to other banks and financial institutions. The loans are… …   Accounting dictionary

  • syndicated bank facility — syndicated loan A very large loan made to one borrower by a group of banks headed by one lead manager, which usually takes only a small percentage of the loan itself, syndicating the rest to other banks and financial institutions. The loans are… …   Big dictionary of business and management

  • Loan Syndications and Trading Association — (LSTA) USA A US trade association of syndicated loan professionals (including financial institutions and law firms) formed in 1995 to improve the liquidity of the US secondary market for the trading of debt. Among other things, LSTA publishes… …   Law dictionary

  • Loan Market Association — (LMA) A market led body established in December 1996 to foster an environment in the Euromarkets that would facilitate the development of a secondary market for loans. Its overall mission is acting as the voice of the syndicated loan market (both …   Law dictionary

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