Original borrowers and original guarantors are the signatory borrowers and guarantors at the date of the execution (signing) of the facility agreement.  In jurisdictions where it is not prohibited, facility agreement will commonly include each subsidiary and the parent company of the principal borrower as both original borrower and original guarantor.

An additional borrower is an obligor that accedes to the agreement as borrower after execution of the facility agreement.  For investment grade facilities, for a subsidiary to become an additional borrower, it will usually have to be wholly-owned and approval of either all lenders or the majority lenders will normally need to be obtained.  For acquisition finance facilities, members of the target group will automatically accede as additional borrowers after transaction completion.

"Borrower" means an Original Borrower or an Additional Borrower unless it has ceased to be a Borrower in accordance with Clause 25 (Changes to the Obligors). .

The leveraged facilities agreements contemplate that the facilities be cross-guaranteed by the acquiring company and all members of the target group.  Until the closing date of the acquisition transaction, the acquiring company will not control the target group, leaving only the parent company and the acquiring company as the original guarantors.  Members of the target group will accede to the facility documents as additional guarantors upon completion of the acquisition.

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