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 participationby more than one lender using common documentation, on uniform terms and conditions.  Syndicated facilitiesare 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 borrowers 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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