With regard to practical experience, certain provisions have been added over time in order to avoid accidental and/or technical omissions in the relevant documentation, including through a number of additions to the design clause of a document. On the other hand, some additional provisions have been added to allow borrowers to have more flexibility in achieving their operational objectives and/or avoid inhibitions for their activities. These include an increased number of derogations from existing Covenants to allow for additional measures that would otherwise have been prohibited, for example.B. additional types of debts that can be incurred and guarantees granted to other creditors. In recent years, LMA has updated its LF agreement more often than its investment level agreements. Some of these changes are simply specific to funding. But the LMA also seems interested in the fact that investment level agreements are simple as far as possible and are more willing to make changes to the LF agreement. Loan agreements are key aspects of capital structures and balance the lender`s protection against the borrower being able to manage its business in accordance with its business plan. Recently, the duration of these credit agreements has increased considerably and White & Case is investigating the reasons. While the finger is often singled out at lawyers who add increasingly complex designs and provisions to applicable documents, they often solve either an already identified existing problem or document a commercially agreed position, which is more involved and complex than the previous transaction.

Comparing a credit agreement with the LMA form is perhaps a bit unfair, because while the LMA form is an extremely useful industry standard form document, the business transaction is often based on a “market” precedent that, as described above, has expanded over time to take into account both the practical realities of the creditor-debtor relationship and develop documents in new forms with functions. Additional. Ironically, a shorter lead time for transactions can lead to even longer than shorter documents, as parties tend to add additional wording (especially the excessive nature) to make a point rather than finely agree on some equivalent terms…