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Bridge Financing Agreement for Austria

Bridge Financing Agreement Template for Austria

A Bridge Financing Agreement under Austrian law is a temporary financing arrangement that provides immediate funding while a company arranges permanent financing or awaits an expected cash inflow. The agreement, governed by Austrian civil and banking laws, details the terms of the short-term loan, including interest rates, repayment provisions, security arrangements, and conditions precedent. It incorporates specific Austrian regulatory requirements, particularly those from the Austrian Banking Act (BWG) and Civil Code (ABGB), while providing flexibility for refinancing or repayment through permanent financing solutions.

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What is a Bridge Financing Agreement?

The Bridge Financing Agreement is essential in situations where companies require immediate funding but are awaiting more permanent financing arrangements. This document type is commonly used in acquisitions, real estate transactions, or when anticipating significant capital events. Under Austrian law, the Bridge Financing Agreement must comply with specific regulatory requirements, including the Austrian Banking Act (BWG) and Financial Market regulations. The agreement typically includes detailed provisions on facility amount, interest calculations, security arrangements, conditions for drawdown, and refinancing obligations. It serves as a crucial tool for maintaining business operations or securing time-sensitive opportunities while permanent financing solutions are being arranged. The temporary nature of the financing is reflected in its terms, usually ranging from a few months to a year, with clear exit mechanisms and refinancing provisions.

What sections should be included in a Bridge Financing Agreement?

1. Parties: Identification of the lender(s) and borrower(s) with full legal names and addresses

2. Background: Context of the bridge financing, including purpose and intended permanent financing

3. Definitions and Interpretation: Key terms used throughout the agreement and rules of interpretation

4. The Facility: Details of the bridge loan facility, including amount, purpose, and availability period

5. Interest and Fees: Interest rate, calculation methods, payment dates, and any associated fees

6. Repayment and Prepayment: Terms for repayment, prepayment rights and obligations, and refinancing provisions

7. Conditions Precedent: Conditions that must be satisfied before drawdown

8. Representations and Warranties: Standard and transaction-specific representations and warranties

9. Covenants: Positive and negative obligations of the borrower during the facility period

10. Events of Default: Circumstances constituting default and consequences

11. Changes to Parties: Assignment and transfer provisions

12. Administration: Notice requirements, calculations, and other administrative provisions

13. Governing Law and Jurisdiction: Choice of Austrian law and jurisdiction provisions

What sections are optional to include in a Bridge Financing Agreement?

1. Security: Required if the bridge financing is secured; details security arrangements and enforcement rights

2. Guarantee: Include if there are third-party guarantors for the facility

3. Accordion Feature: Optional provision allowing for increase in facility amount under specified conditions

4. Tax Gross-Up and Indemnities: Include if tax implications need specific addressing, particularly with international parties

5. Increased Costs and Market Disruption: Include for longer bridge facilities or where market volatility is a concern

6. Multi-currency Provisions: Required if the facility can be drawn in multiple currencies

7. Subordination: Include if the bridge financing needs to be subordinated to other debt

8. Exit Strategy: Detailed provisions regarding refinancing or exit mechanisms if beyond standard repayment terms

What schedules should be included in a Bridge Financing Agreement?

1. Schedule 1 - Conditions Precedent: Detailed list of required documents and conditions for drawdown

2. Schedule 2 - Form of Drawdown Request: Template for borrower to request disbursement of funds

3. Schedule 3 - Repayment Schedule: If applicable, detailed schedule of repayment dates and amounts

4. Schedule 4 - Security Documents: If secured, list and copies of security documentation

5. Schedule 5 - Financial Covenants: Detailed calculations and definitions for financial covenants

6. Schedule 6 - Addresses for Notices: Contact details for all parties for formal notices

7. Appendix A - Form of Compliance Certificate: Template for periodic compliance certification

8. Appendix B - Form of Transfer Certificate: Template for transferring rights and obligations under the facility

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Austria

Publisher

Ƶ

Document Type

Financing Agreement

Cost

Free to use
Relevant legal definitions

























































Clauses






































Relevant Industries

Banking and Financial Services

Real Estate

Manufacturing

Technology

Healthcare

Energy

Infrastructure

Retail

Telecommunications

Private Equity

Construction

Transportation

Mining and Resources

Relevant Teams

Legal

Finance

Treasury

Corporate Development

Risk Management

Compliance

Credit

Banking

Investment

Operations

Relevant Roles

Chief Financial Officer

Finance Director

Treasury Manager

Corporate Lawyer

Legal Counsel

Banking Relationship Manager

Credit Risk Manager

Financial Controller

Investment Manager

Corporate Finance Manager

Debt Finance Manager

Transaction Manager

Senior Banker

Compliance Officer

Managing Director

Industries









Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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