Syndicated Loans

Contracting a Syndicated Loan is easier than negotiating multiple bilateral loans with different entities as it centralises the negotiation with the agent bank. The origin of the operation may be more complex than a bilateral one, but with this the company ensures the “framework” of long-term financing.

The client ensures long-term financing at a specified margin. This saves recurring commissions from the renegotiation of bilateral operations.

It doesn't have to be. A long-term price is set, avoiding the fluctuations in market margins and indexed to the company's leverage, so that companies with low leverage ratios are financed at low margins and vice versa. The profile of the company (whether it is highly leveraged or not) is paramount. The price obtained is appropriate for the level of debt.

The costs of syndicated loans are offset by the absence of periodic opening costs for bilateral loans. It allows a single representative (agent) and savings in administrative costs.

No, the company can design the financing together with the bank syndicate and maintain its relations, establishing the risk level of each entity.

While complying with the business plan, the company does not lose flexibility. The syndicate only reflects in a contract the internal action policies of a company (no leverage above a certain level, not to provide guarantees above a set threshold ...) and its business plan, including certain deviation.