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In addition, some of the group`s subsidiaries have concluded a £30.0 million Super Senior Revolving Credit Facility and on 26 March 2020 the group concluded a £30.0 million drawdown of this facility. Issued debt securities and other borrowed funds include securities backed by listed assets and variable funding bonds provided by a number of different investors. The LMA is pleased to announce the introduction of a new recommended form of Super Senior Multicurrency Revolving Facility Agreement and associated intercredit agreement for use in transactions that sing a Super Senior Revolving Facility, Senior Secured Note and High Yield Note (the “Super Senior HY Documents”). In reality, it`s still too early to say how “great” LMA`s Super Senior documents are. The structure is still relatively new, so it seems certain that practices and documents will evolve. But anything that can be a documentary starting point saves all parties involved time and money. At a least, care should be taken to ensure that creditors (and their lawyers) spend time negotiating issues of actual commercial importance rather than standard clauses. It should be noted, however, that the European form of Unitranche is different from that adopted in the United States, where there would often be a separate “agreement between lenders”, in which participants in the maturity loan would find priorities among themselves, which are set out in a document in which the borrower is not involved. It played into the hands of the capital markets. High-yield bonds offered an attractive alternative. Companies began looking for a combination of bank debt and high-yield bonds to finance (and refinance) their businesses. Some have used high-yield bonds to refinance some of their bank debt, while others have started using bonds with high guaranteed interest to repay their debt in full.

Bank lenders would only provide a working capital mechanism (Super Senior Revolving Credit Facility) that would sit next to high-yield bonds. A set of common security measures would benefit both bank lenders and holders of high-yield bonds, as well as any eligible collateral. We see many examples of first out/last out deals in the market, i.e. where the ICA provides that part of the maturity loan (often from the bank that provides the working capital facility) is considered “Super Senior” in addition to the working capital facility. I assume that we will see that the new document will also be used as a starting point for this type of structures, with the necessary adjustments being made by the law firms that advise in these transactions. Mullen: Since the financial crisis, the number of private equity funds directly allocated to private equity sponsors and others has been steadily increasing. The fund structure of choice is a “Unitranche” loan combining the traditional senior and mezzanine tranches into a single instrument and a mixed margin. However, the AML also recognizes that it is impossible to create an inter-credit agreement that is “standard” for all of these types of transactions. The transaction may deviate from the transaction accepted by LMA Super Documents Senior and, as a general rule, the parties will want to trade alternative positions. If the parties decide to appoint an independent third-party security officer, that security officer will carefully review the implementation process to ensure that it is clear when (and how) to act. In November 2013, the Loan Market Association (LMA) published two new documents (plus associated user manuals) for use in leveraged finance transactions. The LMA recommends them for use when the financing includes a renewable super senior facility, secured coverage, and priority covered bonds, which are provided under typical New York law.