The past few decades have witnessed a sea change in commercial loan markets. Chief among these changes are the rise of syndicated loans, liquid secondary markets, and new sources of funding from collateralized loan obligations and other nonbank lenders. Loan markets have also evolved through the use of technology in screening and monitoring borrowers and the widespread adoption of performance pricing provisions and borrower-friendly structures such as covenant-lite loans.
The NYLS Loan Report provides a snapshot of this vital and dynamic market for the first half of 2013. This one-of-a-kind resource provides a free and readily accessible compilation of recent loan terms with links to primary source materials. The transactions in the Report are taken from the Securities and Exchange Commission’s EDGAR database, which contains material agreements required to be publicly disclosed by the Securities and Exchange Act of 1934.
This edition of the NYLS Loan Report covers 168 commercial loans with a combined value of approximately $80 billion and that range in size from $220,000 to $5 billion.* The agreements in the Report are broadly representative of current market terms and structures. Most of the agreements are widely syndicated and secured, and asset-based loans tied to the value of a borrowing base only make up a small portion of the sample. In addition, larger loans tend to be split into term and revolving components. New York dominates as the choice of governing law jurisdiction, and non-U.S. lenders are quite prevalent.
The Loan Report is the product of a coordinated and meticulous effort by over thirty New York Law School students. As Editors and Senior Editors, the students familiarized themselves with the structure of loan contracts and markets and then analyzed hundreds of pages of agreements to distill their essential terms in a consistent, accurate, and readable format. The students that worked on the Loan Report deserve special thanks for setting the bar so high for future editions and other projects of the law school’s Center for Business and Financial Law. An extra special recognition goes to Christoph Doellefeld, the Center’s 2013-2014 Graduate Fellow. Without Christoph getting so quickly up to speed and overseeing and managing production of the Report, it simply could not have been completed.
The Loan Report hopes to evolve in subsequent editions by moving to a quarterly schedule and a web-based format. We welcome reader comments.
* The Loan Report does not capture loans made to private companies not required to publicly file financial information. The Report also does not include loans to real estate investment firms, investment advisers, financial companies, regulated utilities, non-U.S. borrowers, and restated and amended agreements. The Loan Report does not represent or warrant the accuracy of any aspect of the information provided herein. The Report is purely for informational purposes and does not constitute legal or financial advice.