A syndicated facility is financing in which revolving credit or a term loan facility is arranged and provided in direct syndication and/or funded in a [donotmark]participation[/donotmark]by more than one lender using common documentation, on uniform terms and conditions.  [donotmark]Syndicated facilities[/donotmark]are originated and arranged by one or more commercial banks or investment banks, administered by a common party – usually the loan originator and lead arranger – and marketed to other banks and investment entities.

"Commitment" means a Facility A Commitment, Facility B Commitment, Facility C Commitment or Revolving Facility Commitment.

The legal, beneficial or economic interest acquired or to be acquired expressly and specifically in or in relation to a syndicated finance facility is a facility interest.  Be it revolving credit or a term loan, whether by way of assignment, novation, participation or any other means of loan transfer, it is most commonly called a “syndicated loan”.

The main advantages for the borrower of multilateral syndicated financing over bilateral lending are that large amounts of funding can be obtained faster and at a lower total cost than multiple bilaterals from different lenders.  Syndicated lending may also be attractive to [donotmark]borrowers[/donotmark] looking to achieve diversification of their funding sources while creating new or strengthen existing relationships with their core banks.  A successful syndicated transaction also brings to the borrower positive publicity in the financial community and facilitates future borrowing.

Firm-commitment underwriting, best-efforts arrangements and club deals are the basic forms of loan syndication.

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