Credit Facility Agreement Define

There are many definitions in each facility agreement, but most are either standard – and generally uncontested – or specifically for individual transactions. They should be carefully considered and, if necessary, carefully considered using the lender`s offer letter/offer sheet. The amended and amended credit facility agreement between Laurus and the banks on November 2, 2006 becomes repayable in the event of a change of control, unless the interested party is Casino; The subordinated loan agreement concluded on November 2, 2006 between Laurus and Casino and the banks becomes repayable in the event of a change of control, unless the party concerned is Casino. Representations and guarantees are similar in all facility agreements. They focus on the borrower`s legal capacity to enter into financing agreements and the nature of the borrower`s activity. They will often be broad and the borrower may try to limit them to issues that, if not correct, would have a significant negative effect. This qualification may apply to a large number of insurance and guarantees relating to the borrower`s activities (for example. B litigation, environmental and accounting matters), but will probably not be acceptable to the lender in order to limit the borrower`s ability to enter into financing agreements or with respect to important financial information. The types of loan contracts vary considerably from sector to sector, from country to country, but characteristically a professional commercial loan contract includes the following conditions: a loan contract is the document in which a lender – usually a bank or other financial institution – defines the conditions under which it is willing to grant a loan to a borrower. Loan contracts are often referred to by their more technical name, “easy agreements” – a loan is a bank “facility” that the lender offers to its client. This guide focuses on the most common conditions of an easy agreement. LIBOR: The London Interbank Offered Rate (LIBOR) is a daily benchmark rate based on rates at which banks can borrow unsecured funds from other banks. It is generally defined for the purposes of a facility agreement by reference to a screen interest rate (usually the British Bankers Association interest rate for the currency and the period in question) or at the base rate of the reference bank, which represents the average interest rate at which the Bank can borrow funds on the London interbank market.

The Revolving Credit Facility Agreement also requires other subsidiaries of the company to guarantee the Revolving Credit Facility (RCF) granted under the Revolving Credit Facility Agreement, when they grant to another creditor a guarantee on the financial indebtedness of the WPP Group in excess of USD 50,000,000. The various types of credit facilities include revolving credit facilities, promised facilities, letters of credit and most retail accounts.