Syndication Lending

Broadly syndicated loans (BSL) are a type of financing arrangement in which a large group of lenders collectively provides funds to a borrower. These loans are typically extended to large corporations or businesses with substantial capital needs. The syndication process involves the formation of a syndicate, a group of financial institutions that work together to provide the loan. Each lender participates in the loan by contributing a portion of the total amount, spreading the risk and allowing for more significant financing than a single lender could provide.

BSL's are often used for various purposes, such as funding mergers and acquisitions, refinancing existing debt, or supporting capital expenditures. The syndication process is coordinated by an arranger or lead bank, which structures the loan, negotiates terms, and recruits lenders to participate. This financial instrument provides flexibility for both borrowers and lenders, allowing for the customization of terms and conditions to meet the specific needs of the borrower while providing diversification and risk mitigation for lenders.

• $10mm EBITDA minimum
• 5 years in business
• Personal Guarantee from all owners
• Strong collateral base (< 60% LTV)
• EBITDA Coverage of 3x-5x depending on industry

• $20mm-$250mm
• Prime (WSJ) +3%-5%
• Flexible structures and covenants