Bank financing and security
We prepare and negotiate credit documentation, from bilateral loans to syndicated facilities on LMA standards, together with the financial covenants and events of default. We structure project and trade finance, including letters of credit, guarantees and work with the EBRD and IFC. We put in place pledges, mortgages and suretyships, with registration of the encumbrances and support in enforcing the security.
Loan agreements and syndicated lending
Drafting, reviewing and negotiating credit documentation - from bilateral loans to complex syndicated facilities on LMA standards. Our lawyers act for borrowers and for lenders alike, and negotiate the financial covenants, the events of default and the intercreditor arrangements.
Raising bank finance is not merely a matter of signing a loan agreement. Mistakes in the structure of the financing can materially restrict the freedom to manage the business, create the risk of losing assets or lead to accelerated recovery of the debt.
The PROCTOR team supports financing as a whole, analysing not only the terms of the loan agreement but also the financial covenants, the security mechanisms, the corporate restrictions, the guarantees, the structure of the assets, the tax consequences and the potential risks for the business owners.
We build the legal model of the financing so that it balances the interests of the bank against the ability of the company to develop steadily, without placing an excessive legal burden on the business.
Project and trade finance
Structuring the financing of infrastructure, energy and industrial projects where the source of repayment is the cash flow of the project itself. This covers letters of credit, guarantees, pre-export finance and work with international financial institutions (the EBRD, IFC, export credit agencies).
Security for obligations
Putting in place pledges, mortgages, suretyships and other forms of security, including registration of the encumbrances. Our lawyers build the security structure so that it actually works when enforcement is required, and support the realisation of the secured asset.
How we run a lending transaction
The path from the term sheet to registered security and the first drawdown under the facility.
01
Term sheet and structure
We go through the terms the bank proposes before the main documents are signed: amount, tenor, covenants, the list of security. We prepare the client's position for the negotiation.
02
Review of the security assets
We check title to the property, the corporate approvals required and the existing encumbrances, so that the pledge or the mortgage does not fall apart at enforcement.
03
Credit documentation
We draft or review the loan agreement: financial covenants, events of default, acceleration, and the intercreditor terms of syndicated facilities on LMA standards.
04
Negotiation with the lender
We agree the wording with the bank or the syndicate, remove excessive restrictions on running the business and fix the final package of documents for signing.
05
Putting the security in place
We sign the pledge, mortgage and suretyship agreements, register the encumbrances in the state registers and close the conditions precedent required for drawdown.
06
The loan after drawdown
We handle covenant reporting, changes to the repayment schedule, substitution of secured assets and, where needed, restructuring or enforcement of the security.
Formats of financing support
The scope follows the need: a review of one agreement, or a whole lending transaction from start to finish.
Review of a loan agreement
An analysis of the bank's draft with a list of amendments: which covenants are dangerous for day-to-day operations and which events of default are drawn too widely.
Transaction from start to finish
We run one financing from term sheet to drawdown: documentation, negotiation, security, registration of the encumbrances and the conditions precedent.
Support of the loan portfolio
Work across all the borrowings of the company: new tranches, refinancing, syndicated and project facilities, work with the EBRD and IFC, continuous covenant control.