Loan Syndications

Loan Syndications

Borrowers who are seeking alternative sources of funding can do so via syndicated loans. A syndicated loan is a process of bringing together a group of lenders and comes into play when the funding required by a borrower is too large an exposure for a single lender. To overcome this, a syndicated loan is arranged so that multiple lenders are able to share the loan and associated risks. The borrower on the other hand, is also able to spread its funding risk amongst different lenders. Syndicated loans generally operate like an ordinary loan – there is an interest rate and a repayment date or schedule.

The SILC Group acts as arranger, facility agent and security trustee of syndicated loans whereby we arrange a panel of financial institutions to jointly provide the loan and we also act as the intermediary between the borrower and lenders to facilitate the process throughout the life of the loan, ensuring our clients have a single point of contact.

Arranging Services

The SILC Group offers a loan arranging service where it provides the borrower guidance on the type of facilities that it may require and structuring the broad terms of those facilities. Once the framework of the borrower’s requirements is formed, The SILC Group organises a panel of lenders to provide the facilities and assists the client in negotiating the terms with those lenders.

Facility Agent

The SILC Group can act as facility agent to facilitate the process of administering the loan facilities on a day to day basis. As facility agent The SILC Group carries out a number of functions including:

  • The borrower’s and lenders main point of contact
  • Monitoring the borrower’s compliance with the terms of the facility
  • Receiving notices and requests on behalf of the lenders from the borrowers
  • Calculating fees, interest and principal payments due and providing notices to the parties
  • Co-ordinate the receipt and distribution of funds to the relevant parties
  • Managing requests from the borrower and decisions from the lenders

This facility agent function is carried out separately to the arranging services and security trustee role.

Loan Management Services

The SILC Group offers loan management services which includes:

  • Credit assessment
  • Loan and security documentation
  • Borrower management
  • Loan administration (fee and interest calculation, disbursement of payments received, and ongoing compliance monitoring)
  • Investor/lender management and reporting
  • Loan default management