Legal Documentation of International Syndicated Loans
This paper describes the legal documentation of international syndicated loans. Firstly, the key features of international syndicated loans are outlined, including syndication of the loan among a wide investor base, structuring flexibility, optimal transaction schedule, governance of the legal documents by english law, execution of payments and communications via the facility agent. Secondly, the key legal documents of an international syndicated loan are considered: the mandate letter, legal documents of the syndication process, the facility agreement, the security documents. The roles and functions of the deal participants are described regarding their role in the documentation process with the timeline discussed in detail. Cases are considered when it is necessary to prepare additional documents after the signing of the deal, as well as the legal aspects of decision making by the syndicate. One of the main factors in a successful transaction is for the borrower to agree on all the key terms of the loan with the lenders and then work on the right reflection of these terms in the legal documents. Significant preparation for the deal is required to achieve this goal, including planning the process in advance and hiring legal advisers.