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Syndicated Loan Agreement for New Zealand

Syndicated Loan Agreement Template for New Zealand

A comprehensive financing agreement governed by New Zealand law that establishes the terms and conditions for a loan provided by multiple lenders (the syndicate) to one or more borrowers. The agreement details the facility amount, interest rates, repayment terms, conditions precedent, representations and warranties, covenants, and events of default. It includes provisions for the appointment and role of a facility agent to manage the loan administration on behalf of the syndicate, and potentially a security trustee if the loan is secured. The document incorporates specific requirements under New Zealand banking and financial services regulations, including compliance with the Contract and Commercial Law Act 2017 and other relevant legislation.

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What is a Syndicated Loan Agreement?

The Syndicated Loan Agreement is a sophisticated financial instrument used when the size or complexity of financing requires multiple lenders to participate in providing the loan facility. This document type is particularly relevant for large-scale financing in New Zealand, where a single lender may not have the capacity or risk appetite to provide the entire facility amount. The agreement comprehensively addresses all aspects of the lending arrangement, including facility terms, drawdown mechanics, representations and warranties, covenants, and events of default. It establishes the framework for ongoing loan administration through a facility agent and incorporates specific requirements under New Zealand law, including compliance with the Contract and Commercial Law Act 2017, Property Law Act 2007, and relevant banking regulations. The document is structured to facilitate secondary market trading of the loan and includes provisions for changes in the lending syndicate.

What sections should be included in a Syndicated Loan Agreement?

1. Parties: Identifies all parties including borrower(s), original lenders, facility agent, and security trustee

2. Background: Sets out the context and purpose of the facility

3. Definitions and Interpretation: Comprehensive definitions section and rules of interpretation

4. The Facilities: Details of the loan facilities, commitments, and purpose

5. Conditions of Utilisation: Conditions precedent and ongoing conditions for drawdown

6. Utilisation: Procedure for requesting and making utilisations

7. Repayment: Terms and schedule for repayment of the facilities

8. Prepayment and Cancellation: Voluntary and mandatory prepayment events and procedures

9. Interest: Interest calculation, periods, and payment provisions

10. Fees: All fee provisions including arrangement, commitment, and agency fees

11. Tax Gross Up and Indemnities: Tax provisions and related indemnities

12. Increased Costs: Provisions for dealing with changes affecting lenders' costs

13. Representations: Borrower representations and warranties

14. Information Undertakings: Financial and other information obligations

15. Financial Covenants: Financial maintenance covenants and calculations

16. General Undertakings: Positive and negative undertakings

17. Events of Default: Default triggers and consequences

18. Changes to the Parties: Transfer and assignment provisions

19. The Facility Agent and the Security Trustee: Roles, duties, and rights of the administrative parties

20. Conduct of Business by the Finance Parties: Provisions governing lender conduct

21. Payment Mechanics: Payment provisions, timing, and currency

22. Set-off: Rights of set-off and related provisions

23. Notices: Communication methods and deemed delivery

24. Calculations and Certificates: Basis of calculations and evidence

25. Amendments and Waivers: Procedures for modifications and consents

26. Governing Law and Enforcement: Governing law and jurisdiction provisions

What sections are optional to include in a Syndicated Loan Agreement?

1. Security: Required if the facility is secured - details security structure and enforcement

2. Guarantee: Required if there are guarantors - contains guarantee provisions

3. Multiple Currencies: Required for multi-currency facilities - contains currency conversion and availability provisions

4. Letter of Credit Facility: Required if the facility includes letters of credit - contains L/C specific provisions

5. Bank Guarantees: Required if bank guarantees are part of the facility

6. Market Disruption: Optional provisions for dealing with market disruption events

7. Defaulting Lender: Provisions dealing with defaulting lenders in the syndicate

8. Debt Purchase Transactions: Required if borrower debt buy-backs are permitted

9. Incremental Facilities: Required if the agreement allows for additional facilities to be added

10. Sustainability-Linked Provisions: Required for green or sustainability-linked loans

What schedules should be included in a Syndicated Loan Agreement?

1. Original Parties: Details of original lenders and commitments

2. Conditions Precedent: List of required conditions precedent documents

3. Utilisation Request: Form of utilisation request

4. Form of Transfer Certificate: Standard form for transfers between lenders

5. Form of Assignment Agreement: Standard form for assignments

6. Form of Compliance Certificate: Template for periodic compliance certifications

7. Form of Accession Deed: Template for new parties joining the agreement

8. Timetables: Operational timelines for payments, notices, and other actions

9. Financial Covenant Calculations: Detailed financial covenant calculation methodologies

10. Security Documents: List and forms of security documents

11. Existing Security and Financial Indebtedness: Details of permitted existing arrangements

12. Form of Resignation Letter: Template for obligor resignation

13. Form of Increase Confirmation: Template for facility increases

14. Screen Rate Contingency Provisions: Provisions for benchmark rate discontinuation

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

New Zealand

Publisher

Ƶ

Document Type

Agreement Contract

Cost

Free to use
Relevant legal definitions










































































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Relevant Industries

Banking and Financial Services

Infrastructure

Real Estate

Energy

Mining

Telecommunications

Manufacturing

Healthcare

Transportation

Retail

Technology

Agriculture

Construction

Education

Relevant Teams

Legal

Finance

Treasury

Risk Management

Compliance

Credit

Corporate Finance

Company Secretariat

Banking

Syndications

Transaction Management

Relevant Roles

Chief Financial Officer

Finance Director

Treasury Manager

Corporate Lawyer

Legal Counsel

Banking Lawyer

Relationship Manager

Credit Manager

Risk Manager

Facility Agent

Syndications Manager

Compliance Officer

Financial Controller

Company Secretary

Corporate Finance Manager

Transaction Manager

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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