A secondary market supports syndicated loans after syndication closing.  Only few loans do not permit secondary trading or transferability, such as club loans.

In the US loan market, an assignment and assumption agreement is a form used to document the sale and assignment of rights and obligations under a credit agreement by a lender to an assignee.  It is typically attached to each credit agreement.

Novation and assignment of LMA facilities is brought about by means of a transfer certificate (Schedule 5 (Form of Transfer Certificate) and an assignment agreement (Schedule 6 (Form of Assignment Agreement)), respectively.  The agent, the transferor and the transferee are the only parties usually required for execution.  All other parties are deemed to consent to the transaction, provided the other conditions to any transfer set out in the facility are complied with.  The borrower’s consent is not required for a transfer or assignment to another lender or an affiliate of a lender.

[Performing loans] are traded by executing an LSTA Par Confirmation and then settling the trade by completing the form of Assignment Agreement provided in the [...] credit agreement.

An assignment of transferred rights under LSTA distressed documentation involves a Purchase and Sale Agreement (PSA), an Assignment and Acceptance Agreement (A&A) and a Purchase Price Letter.  An assignment of purchased assets under LMA distressed documentation involves an LMA Trade Confirmation, which incorporates the LMA standard terms and conditions, an Assignment Agreement and a Pricing Letter.

Participants’ share taken at loan initiation [...] may raise a concern with whether loan share will change as a result of loan sales in the secondary market.

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