How does a syndication agreement deal with the conflicting needs of the lenders?
Article from: OGEL Archive issue , in For the Practitioner
Introduction
Syndication refers to a group of banks joining together to lend directly to a borrower under a single loan agreement known as a syndication agreement (hereafter "Agreement"). It allows borrowers to quickly[1] access large sums of money while lenders share the risk involved[2]. The Agreement is built on the fundamental principles of a single lender international term loan Agreement[3] with one main exception. The Agreement deals with the relationship of the lead bank (hereafter "Agent") to the other syndicate members (hereafter "Banks") and the relationship among the Banks. ...