Loan buybacks refer to a borrower or its affiliate (including a sponsor) buying back part of the borrower's loan from fewer than all of the lenders in a loan syndicate at less than par value. Loan buybacks became prevalent in the early stages of the financial crisis, when syndicated loans were trading at a substantial discount on the secondary market.

For more on loan buybacks, see:

For links to loan buyback provisions in loan agreements, see Practice Note, What's Market: Loan Buybacks.