Douglas R. Plante, Nicholas A. Whitney, Publications
Memorandum Regarding Incremental Loan Facilities: Key Provisions
November 9, 2007
Many syndicated loans provide for incremental loan facilities, also known as "accordion features," which permit a borrower to borrow additional loans under its credit agreement. Below is a short memo describing certain key provisions, including pricing, dilution and covenant compliance, that lenders should carefully consider when negotiating, or before participating in, credit agreements that contain incremental loan facilities.
