#Syndicated loan lead arranger driver#

Underwriters - In some syndicated loans it is necessary for the company to have certainty of funds at an early stage in the process. A successful bookrunner will need to have a good distribution network to ensure the loan is successfully sold to other banks.

#Syndicated loan lead arranger driver#

A key driver of the decision to appoint MLAs will be their structuring and placing power (ie ability to sell the loan to other banks).īookrunner - when the structure and terms of the loan have been agreed one (or a number) of the MLAs will be appointed to sell the loan to other banks in the syndicated loan market (the bookrunner(s). Once the key terms of the loan have been agreed these are documented in a Term Sheet. It is the responsibility of the MLAs to negotiate the terms and conditions (including the price), the tenor and the structure of the facility with the customer. Mandated lead arranger / arranger - Syndicate loans are arranged by a small number (or one) bank known most commonly as the Mandated Lead Arranger(s) (‘MLAs’). There are a number of roles within a syndicate but the key roles are as follows: In the second of a two part series on syndicated lending, Alan Doyle explains the main roles of those involved in a syndicate deal, as well as detailing the typical process and timetable of such a deal.

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