Excerpt from Practical Guidance

A Primer On Market Flex Provisions

Law360, New York (August 3, 2015, 11:38 AM EDT) -- Andrew Bettwy

Glen Lim The market flex provisions of a fee letter permit the arranger to modify the financing contemplated by the commitment letter in various ways to have a successful syndication, including potentially permitting the arranger to restructure the debt (for example, replacing a portion of a senior secured term loan with a second lien or mezzanine loan), increasing pricing, or resizing the commitments (without reducing the aggregate amount). The market flex provisions are often heavily negotiated and will be influenced by factors such as the borrower's industry, the nature of the underlying transaction and the strength of the syndicated...

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