To join a syndicated transaction during general syndication, lenders/investors submit a subscription (“ticket”).  If they receive allocation of any of the amount subscribed for, that part of the underwritten comment must be transferred to the lender.

Credit committees considering a ticket in a syndication, will always, without fail, ask to know which banks have already committed to the deal.

Arrangers (underwriters) transfer a portion of their commitment to participant lenders by means of a global transfer certificate or an individual transfer certificate.  Whether using a global transfer certificate or an individual transfer certificate, the process is similar to that for secondary market sales except that no transfer fees are charged and payable to the facility agent by the new lenders.

A global transfer certificate is a preapproved transfer certificate that is entered into between the arrangers (underwriters) and the participant lenders and delivered to the facility agent on behalf of all other parties to the facility agreement.  This occurs when the allocations of participations are made.

The agent, the transferor and the transferee are the only parties usually required for execution of the loan transfer.  All other parties are deemed to consent to the transaction, provided that the other conditions to any transfer set out in the facility are complied with.  The borrower’s consent is not required for a loan transfer to another lender or an affiliate of a lender.

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