(Syndication, loan secondary market and private equity financing)

Nº 1 / 2022 - (enero-marzo)

(Syndication, loan secondary market and private equity financing)

Pablo Rodríguez Abelenda
Squire Patton Boggs

Abstract:

This article deals with syndicated facilities agreement and the secondary loan market, with a particular focus on the syndication of facilities used towards financing leverage buy out transactions by venture capital funds. The article generally describes the practice of syndicated facilities in Spain, and the main provisions governing the relationship between the lenders. Then, the article analysis the syndication process,
both primary syndication and secondary syndication, and the risks identified by the FSB and other regulatory agencies relating to the secondary market. Finally, the article focus on the work of the LMA and other association on the standardization of the legal documentation for syndicated facilities.

Keywords: Syndicated facilities, venture capital financing, loan secondary market, LMA.