2/3/2010 Loan agreements ·Facility letter Loan agreement:agreement between company and lender(bank) ·Terms-egs: Single drawdown? Repayment-when?Term loans and loans repayable on demand. Fixed rate or floating rate? Revolving facility? Security and creditor protection Security through provision of assets: mortgages and charges ·Guarantees Creditor protection covenants in loan agreement: Undertakings by debtor company (eg negative pledge) ■Events of default 62/3/2010 5 9 Loan agreements • Facility letter • Loan agreement: agreement between company and lender (bank) • Terms - egs:  Single drawdown?  Repayment - when? Term loans and loans repayable on demand.  Fixed rate or floating rate?  Revolving facility? 10 Security and creditor protection • Security through provision of assets: mortgages and charges • Guarantees • Creditor protection covenants in loan agreement:  Undertakings by debtor company (eg negative pledge)  Events of default