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Bridge Financing Agreement for the United Kingdom

Bridge Financing Agreement Template for England and Wales

A Bridge Financing Agreement under English and Welsh law is a legal document that establishes the terms and conditions for short-term financing provided to bridge a gap between two transactions or funding events. It details the loan amount, interest rates, repayment terms, security arrangements, and conditions precedent. The agreement is governed by English law and incorporates relevant financial services regulations, ensuring compliance with UK regulatory requirements and financial markets legislation.

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What is a Bridge Financing Agreement?

Bridge Financing Agreements are essential instruments in corporate finance, typically used when companies require interim funding before securing longer-term financing or completing a significant transaction. These agreements, governed by English and Welsh law, provide detailed terms for short-term loans, including specific provisions for drawdown, repayment, security, and events of default. The Bridge Financing Agreement is particularly crucial in time-sensitive situations, such as acquisitions, refinancing, or development projects, where temporary funding is needed to maintain operations or complete transactions.

What sections should be included in a Bridge Financing Agreement?

1. Parties: Identification of lender(s) and borrower(s), including registered addresses and company numbers

2. Background: Context of the bridge financing, purpose, and relationship between parties

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

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

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

6. Drawdown: Process and requirements for accessing the facility

7. Interest and Fees: Interest rate, calculation methods, and associated fees

8. Repayment: Terms of repayment including maturity date and prepayment provisions

9. Representations and Warranties: Statements of fact and assurances given by the borrower

10. Events of Default: Circumstances constituting default and consequences

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

1. Security: Details of any security arrangements when the facility is secured

2. Guarantees: Terms of any guarantees provided when third-party guarantees are required

3. Conversion Rights: Terms for converting debt to equity when conversion features are included

4. Subordination: Ranking of the bridge facility when other debt exists

What schedules should be included in a Bridge Financing Agreement?

1. Form of Drawdown Notice: Template for requesting drawdown of funds

2. Conditions Precedent Documents: List of required documents and conditions

3. Security Documents: Forms of security documents if applicable

4. Existing Indebtedness: Schedule of borrower's existing debt

5. Fee Schedule: Detailed breakdown of all fees

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

England and Wales

Publisher

Ƶ

Document Type

Financing Agreement

Cost

Free to use
Relevant legal definitions
















































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Industries

Companies Act 2006: Primary legislation governing company operations, corporate borrowing powers, and directors' duties in England and Wales

Financial Services and Markets Act 2000: Regulatory framework for financial services and markets, including lending activities and financial promotions

Consumer Credit Act 1974: Legislation governing consumer credit agreements and related consumer protection measures

Law of Property Act 1925: Key legislation regarding property law and security interests in England and Wales

Money Laundering Regulations 2017: Regulations concerning anti-money laundering requirements and due diligence procedures

Insolvency Act 1986: Primary legislation governing corporate insolvency and related procedures

Enterprise Act 2002: Legislation affecting corporate insolvency procedures and enforcement of security

Companies (Registration of Charges) Regulations 2009: Regulations governing the registration of security interests and charges against companies

Unfair Contract Terms Act 1977: Legislation controlling the use and enforcement of unfair terms in contracts

Misrepresentation Act 1967: Law governing false or misleading statements made during contract formation

Financial Collateral Arrangements (No 2) Regulations 2003: Regulations governing financial collateral arrangements and security interests in financial instruments

Banking Act 2009: Legislation governing banking operations and regulatory framework for financial institutions

Rome I Regulation (Retained EU Law): Rules determining the applicable law in contractual obligations with international elements

FCA Regulations: Financial Conduct Authority regulatory requirements for financial services and lending activities

PRA Requirements: Prudential Regulation Authority requirements for financial institutions and lending practices

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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