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Revised LSTA Model Credit Agreement Provisions Become Effective August 8, 2014
Practical Law Legal Update 3-577-0785 (Approx. 2 pages)
Revised LSTA Model Credit Agreement Provisions Become Effective August 8, 2014
by Practical Law Finance
| Published on 07 Aug 2014 • USA (National/Federal) |
Amendments to the Model Credit Agreement Provisions produced by the Loan Syndications and Trading Association (LSTA) will become effective on August 8, 2014.
On August 8, 2014, amendments to the Model Credit Agreement Provisions (MCAPs) produced by the Loan Syndications and Trading Association (LSTA) will become effective. In addition to revising existing language, the MCAPs now address, among other things:
- Disqualified institutions and how and when related disqualified lender lists should be shared with lenders and prospective lenders (DQ Structure).
- Loan buybacks by the borrower and affiliated lenders.
- Refinancings and cashless rolls. The LSTA also produced a new Form of Cashless Roll Letter Agreement.
The MCAPs also attached a new standard Form of Assignment Agreement which, according to the LSTA, can be used for deals where the borrower creates a list of disqualified institutions and where affiliated lender buybacks are permitted without giving rise to the need to tailor the assignment agreement to reflect a particular assignee's identity. This new DQ Structure created by the MCAPs and this Form of Assignment Agreement is intended by the LSTA to protect the borrower's interests and facilitate a more streamlined approach to trade processing.