Repayment, prepayment and cancellation

This guidance note explains the repayment, prepayment (both voluntary and mandatory) and cancellation provisions in a facility agreement. It also addresses how repayment provisions may differ for term loans and revolving loans, break costs and premiums associated with voluntary prepayments and the typical events which trigger mandatory prepayment. Where appropriate, this guidance note highlights relevant provisions in the Asia Pacific Loan Market Association (APLMA) Australian secured term and multicurrency revolving syndicated facility agreement.

See Repayment, prepayment and cancellation.

Conditions precedent

In financing transactions, conditions precedent are the conditions that need to be fulfilled for funding to occur. This guidance note explains:

• • the nature of conditions precedent;
• • the different types of conditions precedent (ie documentary or factual);
• • the typical conditions precedent contained in a facility agreement;
• • what needs to be taken into account when determining whether the conditions precedent have been satisfied; and
• • what happens if the conditions precedent are not satisfied.

This guidance note looks at the usual conditions precedent in a finance transaction at the time of:

• • first drawdown; and
• • future drawdowns throughout the life of the facility.

Where appropriate, this guidance note highlights relevant provisions in the Asia Pacific Loan Market Association (APLMA) Australian secured term and multicurrency revolving syndicated facility agreement.

See Conditions precedent.