Inter-institutional lending continues to be spent and negotiated, and business credit remains a growing practice. At the centre of these activities is the credit contract – a complex document that often serves as an obstacle even to professionals and support staff who work there on a daily basis. You benefit from detailed information from authors on all the nuances of today`s credit contracts, as well as advice on how to protect your credit, manage defaults and navigate cross-border transactions. This reliable guide covers: Richard Wight, retired, was a partner in the Milbank, Tweed, Hadley and McCloy LLP global finance group from 1985 to 2007. Mr. White has extensive experience representing banks and other institutional investors in complex financing transactions, corporate restructurings and training sessions, debt-financed acquisitions, letters of credit and tax financing. On July 13, 2020, the Loan Syndications – Trading Association (“LSTA”) distributed to its primary market committee a final draft concept credit contract (the LSTA credit agreement) that describes a credit term, which refers to the daily financing rate of overnight Secured Overnight (SOFR) or the daily compound SOFR.  The LSTA credit contract was designed to provide a concrete example of new original SOFR benchmark loans and provide an additional instrument for market participants when LIBOR switches. The LSTA had previously published a conceptual credit agreement covering a composite average of late daily SOFRs and a conceptual credit contract that uses only the simple average of daily SOFFs.  The LSTA`s credit contract supports the Alternative Reference Reference Committee (“ARRC”) which recommended the libOR escape language for union credits, published on June 30, 2020, and merely updates the solidly wired case approach and contains daily simple SOFR as a second cascading replacement rate.  The strengths of the LSTA`s credit contract are: From defining the terms of the agreement to managing defaults, orders and competitive offers, this global reference tool opens the heart and soul of the credit market to institutional investors and credit professionals.
The operating staff responsible for the execution and management of credit contracts will find it invaluable.