Trends in Loan Terms – 2015-2016

Practical Law, the online resource for legal information, hosted a webinar reviewing the latest trends in loan terms for large cap and middle market loans.

This webinar and related materials are a valuable view into how the reported credit tightening is reflected in credit terms.

My takeaways of trends in middle market loans are:

  1. Non-bank lenders (such as BDCs) presence continues to grow responding to receding bank presence.
  2. Unitranche lending got a boost from the Radioshack decision which upheld provisions of the Agreement Among Lenders (AAL) of which the borrower is not a party.
  3. Know Your Customer (KYC) procedures at lenders have not yet been standardized resulting in a timing wildcard. Advice is to address the process early on in the loan negotiations to reduce a last minute surprise.

Click here for the webinar.