The Loan Market Association (LMA), the European loan market trade association, is looking to complete a standardized leveraged facility agreement for the primary market by the end of this year. The LMA already has an investment-grade facility document, which was introduced in October 1999 and was most recently revised in January 2003. In comparison, the leveraged document is expected to reflect the leveraged buyout and acquisition-type loans that are the hallmark of the European leveraged-loan market, compared to the working capital and back-stop facilities more common to investment-grade deals. "The document will help market players to avoid unnecessary negotiations," said one European loan source.
LMA Finalizes Leveraged Facility Doc