CJ Jouhal
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An Entrepreneur that leverages technology to grow and enhance a business. A Technologist that understands business and entrpreneurship and makes technology facilitate the business model.

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Amended Facilities Agreement

There are a number of factors to consider. For example, how essential the changes are or whether the definition of “financial documents” in the existing facility agreement contains future documents. The fundamental principle to consider is whether security is “all funds” or “specific funds”. There may be other influencing factors. For example, previous facility arrangements may need to be modified and adapted to bring the conditions into line with current donor policy requirements or existing legislation. Either way, it`s important to think about the most pragmatic and least expensive approach. For example, it may be necessary to review an existing interconnection agreement to ensure that you can defer capital repayments under your facility (which can contribute commercially to the junior lenders` financing being blocked for longer). In the case of syndicated agreements, a capital repayment holiday may require the agreement of all lenders in the consortium. This is in contrast to “specific funds” that guarantee obligations arising from a certain set of financial documents or a given agreement. It is unlikely that the guarantee of “certain funds” will continue to guarantee the modified commitments. Consider the circumstances and the specific project used in the initial security document to ensure that the funder has the benefit of a true guarantee of “all funds”.

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