Loan Agreement Study Course
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Course Information
Time Requirements
Objectives
Materials
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Syllabus
Course Information
This course is designed for bankers and lawyers and anyone else who is involved in international finance and needs to understand the documentation. It is useful for beginners, to give them a comprehensive review of the loan agreement and the issues it raises. It is also useful for those with practical experience but who have not previously had any in depth formal training on the agreement, to help them fill in the inevitable gaps in their knowledge and to give them a framework in which to consolidate their practical knowledge. The course uses the investment grade Loan Market Association (LMA) loan agreement as the basis for discussions.
This course runs over 4 weeks (with a wrap up week in week 5 to allow for any outstanding tasks to be completed) and the in depth route through the course involves 30 to 40 hours work
For users who are unable to commit this amount of time, or who are not looking for such in depth training, the "key facts" route to the study course may be of interest. This route requires a commitment of around 15 to 20 hours over the period of the course. The key facts route follows the same curriculum as the in depth study course but there is no compulsory reading - the core of the course will simply involve working through the nuggets and their handouts. Of course, delegates opting for the key facts route will be unable to get the necessary score in the quizzes to pass the same quiz as those who have followed the more in depth program, so there are separate quizzes for those doing the key facts route!
By the end of the course participants should
- Understand the structure of the loan agreement (investment grade, unsecured) and the relationship between its various provisions
- Be able to review a loan agreement for an investment grade borrower and identify key issues such as the scope of the agreement
- Be aware of the importance of the detailed provisions of the loan agreement and be able to negotiate some of the points commonly raised on those provisions
The course materials available online are self contained and no other materials are required in order to complete the Key Facts route through the study course.
Delegates who wish to undertake the in depth route through the course will need to have a copy of the book “International Loan Documentation” by Sue Wright, to be able to participate, as this will be a necessary part of the course materials. The other course materials can be accessed by those registered on the study course, from the link headed "Course Materials" on the side panel next to this window.
The next course will start in November 2009. You can register or enquire by using the registration tab
An overview of the syllabus is set out below. Delegates registered on the course can access the detailed curriculum and the materials from the link to "Course Materials" in the side panel.
Week 1 General Introduction and Administrative Provisions
PART 1 INTRODUCTION
Lesson 1 A Company’s Overview
Lesson 2 Structural Subordination
PART 2 ADMINISTRATIVE PROVISIONS OF THE LOAN AGREEMENT
Lesson 1 General Definitions
Lesson 2 Specific Definitions
Lesson 3 Financial Indebtedness
Lesson 4 Drawdown and Repayment
QUIZ
Week 2 Interest, Representations and Repeated Representations
PART 1 INTEREST
Lesson 1 LIBOR
Lesson 2 Interest Periods
Lesson 3 Additional Costs
Lesson 4 Increased Costs Clause
Lesson 5 Withholding Tax
Lesson 6 Withholding Tax Part 2
PART 2 REPRESENTATIONS AND REPEATED REPRESENTATIONS
Lesson 1 Representations
Lesson 2 Repeating Representations
QUIZ
Week 3 Undertakings and Introduction to Events of Default
PART 1 UNDERTAKINGS
Lesson 1 Information Undertakings
Lesson 2 General Undertakings
Lesson 3 Financial Covenants
Lesson 4 Financial Covenants Part 2
PART 2 INTRODUCTION TO EVENTS OF DEFAULT
Lesson 1 Events of Default - The Big Picture
Lesson 2 Events of Default – Purpose and Mechanics
Lesson 3 Events of Default – Purpose and Mechanics Part 2
Lesson 4 Scope of the Agreement
QUIZ
COMPULSORY REPORT
Week 4 Events of Default and Boilerplate
Part 1 EVENTS OF DEFAULT
Lesson 1 “Breach of Contract” Events of Default
Lesson 2 Other General Events of Default
Lesson 3 Cross Default
Lesson 4 Material Adverse Change – Arguments for and against
Lesson 5 Material Adverse Change – Wording
Part 2 BOILERPLATE
Lesson 1 The Agent’s Role and the “Boilerplate”
Lesson 2 Transfer Methods
Lesson 3 Transferring Secured Loans
Lesson 4 The Transfer Clause
Part 3 GENERAL
Defaulting Lenders
QUIZ
Week 5 Wrap up Week
For completion of any outstanding quizzes, compulsory written report and the online evaluation