Standard form facility agreements need not be static documents and, from a borrower’s perspective, should not be. Ceinwen Rees examines how a borrower can improve its tax position under an LMA facility agreement.
Few would argue with the mantra that there is little benefit in reinventing the wheel. Following this advice since 1996 the Loan Market Association (LMA) has been publishing and maintaining debt documentation which is now predominantly the starting point in most new syndicated loan negotiations. These standard forms provide an incredibly useful base for both borrowers and lenders expediting the process of agreeing lending terms and significantly reducing costs. Which does rather beg the question – ‘why negotiate?’ The question is asked particularly in respect of the tax provisions; there are so many commercial terms to agree...
