What is a syndication agreement?
Syndication Agreement means the agreement in agreed form between the Parties and other banks and financial institutions syndicating the Commitments of the Lenders.
What is a syndicated loan agreement?
What Is a Syndicated Loan? A syndicated loan, also known as a syndicated bank facility, is financing offered by a group of lenders—referred to as a syndicate—who work together to provide funds for a single borrower. The borrower can be a corporation, a large project, or a sovereign government.
How does a loan syndication work?
Loan syndication occurs when two or more lenders come together to fund one loan for a single borrower. Syndicates are created when a loan is too large for one bank or falls outside the risk tolerance of a bank. The banks in a loan syndicate share the risk and are only exposed to their portion of the loan.
What is the difference between club deal and syndication?
A club loan is a type of syndicated loan in which a small group of banks agree to provide funding to a borrower. It is similar to a syndicated loan except that there will not be any further general syndication of the loan.
Why is Syndication so important?
Overview. Syndication is often a profitable enterprise because a series can be rerun for years after it ends production. Shows of limited profitability during their first run will still prove to be viable to the production company if they can last 100 episodes.
How does syndication work in real estate?
A real estate syndication is when a group of investors pools together their capital to jointly purchase a large real estate property. Apartments, mobile home parks, land, self-storage units and other real estate assets are some of the investment opportunities available through real estate syndications.
How long is a syndication cycle?
A show usually enters off-network syndication when it has built up about four seasons’ worth or between 80 and 100 episodes, though for some genres the number could be as low as 65. Successful shows in syndication can cover production costs and make a profit, even if the first run of the show was not profitable.
What are the disadvantages of loan syndication?
Disadvantages. Time-consuming process since negotiating with the bank can take various days. Thus, loan syndication is a time-consuming process. Borrowers may also be adversely affected by syndicated loan agreements.
What is loan syndication?
Updated Jan 15, 2019. Loan syndication is the process of involving a group of lenders in funding various portions of a loan for a single borrower. Loan syndication most often occurs when a borrower requires an amount too large for a single lender to provide or when the loan is outside the scope of a lender’s risk-exposure levels.
Why do I need a syndication agreement?
The syndication agreement also addresses priorities in the event of lessee default, insolvency, bankruptcy, casualty, and the validity and enforceability of the underlying lease documents during syndication.
Who is the borrower of this syndicated loan agreement?
THIS SYNDICATED LOAN AGREEMENT (the “ Agreement ”) is made and entered into as of March 3, 2008 by and among: ADVANCED SEMICONDUCTOR ENGINEERING INC., a company organized and incorporated under the laws of the Republic of China (the “ ROC ” or “ R.O.C. ”) (the “ Borrower ”);
Why do multiple lenders form a syndicate?
Thus, multiple lenders form a syndicate to provide the borrower with the requested capital. Loan syndication is when a group of lenders come together to fund various portions of a single loan for a single borrower. Loan syndicates are created when a loan is too large for one bank or falls outside the risk tolerance of a bank.