Spotlight on Practical Law What’s Market

March 22, 2017

A spotlight on Practical Law What’s Market which allows subscribers to search, review, and compare summaries of recent deals and filings and provides resources on current trends and market practice.

Practical Law What’s Market ┬áprovides a wealth of information that allows you to stay on top of current trends and market practice.

The Finance Service has three What’s Market databases that provide summaries of publicly filed documents that allow you to analyze and compare specific provisions across multiple deals. The databases are:

The Finance Service also has What’s Market Practice Analysis which includes practice notes and trends articles covering market practice on a range of finance topics. These resources include links to What’s Market summaries and recent filings. Examples include:

  • What’s Market: Anti-Hoarding Provisions in Reserve-Based Loans. An anti-hoarding provision is intended to prevent borrowers from hoarding cash to create negotiating leverage with a bank group or in advance of a bankruptcy filing. The provision requires borrowers to use excess cash (as defined in the agreement) to prepay amounts outstanding under a reserve-based loan facility and also prevents borrowers from requesting a loan if, after giving effect to the loan, they hold cash and cash equivalents in excess of a specified dollar amount in its bank accounts. This Note discusses the anti-hoarding provision and includes links to oil and gas credit agreements and credit agreement amendments that include the feature.
  • What’s Market: Current Trends in Call Protection (as of August 2016). Many credit agreements permit the borrower to voluntarily prepay all or a part of the loans at any time without premium or penalty. However, certain credit agreements require that a prepayment premium or penalty, also known as call protection, must be paid by the borrower if it prepays all (or a portion) of the loans. This Note focuses on call protection, specifically call protection triggers, exceptions to the prepayment premium, market practice regarding premium amount, and the length of the call protection period.
  • What’s Market: Analysis of the EU Bail-In Rules. In 2016, the European Union took proactive measures and set new regulatory rules for European Economic Area member states to prevent taxpayers from having to come to the rescue of banks in the event of another financial crisis. US borrowers were strongly advised to include language in their market loan documents addressing this new regulation. This Note examines the US loan market’s response to the bail-in requirement during the first few months of 2016.

Every six months Practical Law also writes an article reviewing loan trends in the large cap and middle market. In addition to an overview of the market and a robust analysis of recent trends, the article includes an “Expert View” Q&A box for leading practitioners to discuss developments in the market and predict where it may be heading. For the most recent trends article see What’s Market: 2016 Year-End Trends in Large Cap and Middle Market Loan Terms.

Learn more from the experts at Practical Law.