Acquisition finance—senior facilities


Published by a UUÂãÁÄÖ±²¥ Banking & Finance expert
Practice notes

Acquisition finance—senior facilities


Published by a UUÂãÁÄÖ±²¥ Banking & Finance expert

Practice notes
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This Practice Note is intended as an introduction to facilities typically contained in a leveraged senior facilities agreement (SFA) and covers:

  1. •

    the main characteristics of each type of senior facility

  2. •

    typical senior lenders

  3. •

    documenting the terms of the senior facilities, and

  4. •

    the security and intercreditor position of senior facilities.

For an introductory guide to acquisition and leveraged finance, see Practice Note: Introductory guide to Acquisition finance.

For more detail on typical terms applicable to senior facilities, see Practice Note: Introductory guide to leveraged finance facilities agreements.

An explanation of many of the terms used in this Practice Note can be found in the Glossary of acquisition finance terms and jargon.

Overview of senior facilities

The senior facilities that may be provided to the group can broadly be divided into three types:

  1. •

    the main term facilities, used for the acquisition (or refinancing or recapitalisation, as applicable)

  2. •

    other term facilities eg Incremental facilities, Capex and/or further acquisition facilities, and

  3. •

    Working Capital facility in the form of a revolving credit facility (RCF)

Transaction

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Jurisdiction(s):
United Kingdom
Key definition:
Acquisition finance definition
What does Acquisition finance mean?

A source of external finance obtained by the acquiring company to fund an acquisition. This can be in the form of bank debt and/or equity, such as a share issue.

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