LMA.Automate Launches Bilateral Facility Agreement
26 July 2023LMA.Automate is delighted to have produced a new Bilateral Facility Agreement, which has been made available to all subscribers on the platform from today.
We believe this new template, being the first of its kind, will have a broad and compelling use case for all LMA.Automate subscribers, whether lenders or law firms. Aside from the clear benefits which come from a digitised document, the flexibility of the platform allows for more efficient execution of loan documentation for these types of facilities.
This new bilateral facility template has been prompted by subscriber demand and our awareness that bilateral facilities are often, whether due to deal size, borrower type, ease of drafting or internal lender policy requirements, based on pre-existing LMA form.
Who is the bilateral document intended to be used by?
We are aware bilateral loans (corporate loans extended on a bilateral basis by a single lender as opposed to a syndicate of lenders) are commonplace and frequently used by LMA members. Such loans may be drafted by a lender’s external counsel or produced and issued internally by the lender itself. As such, the Bilateral Facility Agreement on the LMA.Automate platform will have a broad use case for both lenders and law firms.
Subscribers to the platform would be in a position to quickly and easily develop their own internal precedents derived from the Bilateral Facility Agreement and to work with counterparties on the platform to negotiate and conclude the document. The bilateral counterparty (for example, the borrower) would not need to be a subscriber to the platform. Equally, the LMA.Automate platform is designed for lenders and law firms to work together for maximum efficiency.
For more questions answered, download our factsheet.