What is a primer loan?

What is a primer loan?

A priming loan is a form of debtor-in-possession (DIP) financing that allows a company that is in Chapter 11 bankruptcy proceedings to obtain credit to assist in specific areas of its business operations and reorganization.

What is a syndicated bank loan?

A syndicated loan is a loan extended by a group of financial institutions (a loan syndicate) to a single borrower. Syndicates often include both banks and non-bank financial institutions, such as collateralized loan obligation structures (CLOs), insurance companies, pension funds, or mutual funds.

What does getting primed mean?

verb [ T ] /praɪm/ us. /praɪm/ to tell someone something that will prepare them for a particular situation: I’d been primed so I knew not to mention her son.

What is a priming lien?

A lien on property senior to, or with the same priority as, existing liens on the same property.

What are the types of syndicated loans?

There are four main types of syndicated loan facilities: a revolving credit; a term loan; an L/C; and an acquisition or equipment line (a delayed-draw term loan). A revolving credit line allows borrowers to draw down, repay and reborrow as often as necessary.

What is syndication process?

Loan syndication is a process that involves multiple banks and financial institutions who pool their capital together to finance a single loan for one borrower. There is only one contract and each bank is responsible for their own portion of the loan.

What are TLB loans?

Related Content. Also referred to as a Term B Loan or an institutional term loan. A term loan made by institutional investors whose primary goals are maximizing the long-term total returns on their investments.

What is an example of priming?

Priming occurs whenever exposure to one thing can later alter behavior or thoughts. For example, if a child sees a bag of candy next to a red bench, they might begin looking for or thinking about candy the next time they see a bench. Several schools of thought in psychology use the concept of priming.

What are priming techniques?

In psychology, priming is a technique in which the introduction of one stimulus influences how people respond to a subsequent stimulus. Priming works by activating an association or representation in memory just before another stimulus or task is introduced.

What does priming a deal mean?

Priming usually involves the debtor shifting collateral and assets away from their core lending group to support new tranches of debt that are structurally or directly senior to their existing lenders.

What is MLA in banking?

The lead arranger, or the mandated lead arranger (MLA), is the investment bank or underwriter firm that facilitates and leads a group of investors in a syndicated loan for major financing. The lead arranger assigns parts of the new issue to other underwriters for placement and usually takes the largest part itself.

How are syndicated loans traded?

Once the allocations have been given to the syndicate of lenders, syndicated Loan Interests trade in the secondary market with dealer desks at large underwriting banks (each, an “Executing Broker”). Purchases of Loan Interests are typically structured as assignments, in which the assignee becomes a lender of record.

What is a syndicated loan?

A syndicated loan is offered by a group of lenders who work together to provide credit to a large borrower. The borrower can be a corporation Corporation A corporation is a legal entity created by individuals, stockholders, or shareholders, with the purpose of operating for profit.

What is a’syndicated loan’?

What is a ‘Syndicated Loan’. A syndicated loan, also known as a syndicated bank facility, is a loan offered by a group of lenders – referred to as a syndicate – who work together to provide funds for a single borrower.

Who is the lead lender in a syndicate?

In cases of syndicated loans, there is typically a lead bank or underwriter, known as the arranger, the agent or the lead lender. This lender may put up a proportionally bigger share of the loan, or it may perform duties such as dispersing cash flows among the other syndicate members and administrative tasks.

What is the difference between institutional and syndicated debt?

Historically, arrangers syndicated revolving credit and TLa tranches on a pro rata basis to banks and finance companies. Institutional debt consists of term loans structured specifically for institutional investors, though there are also some banks that buy institutional term loans.