|Alexander Griffith:||The new template should help in three different ways. It should
accelerate negotiations. It should ensure that there is a
consistency across the market in terms of straight-forward terms.
And it should allow lenders and their advisors to focus on the key
commercial points. Proskauer has prepared a 1-page intercreditor
term sheet, which is available on request, and will dovetail with
the new LMA precedent.
"The new intercreditor agreement template changes the landscape of how private credit deals are done."
|Ben Davis:||The new intercreditor template introduces some more flexible provisions to enable private credit funds to be able to buy out the super senior debt. It also introduces more flexibility around long stop dates, after which the super senior lenders might be able to enforce. There are a number of other slightly more subtle credit fund friendly provisions that are being introduced. The new intercreditor agreement can also be used as a starting point of first out, last out transactions.|
|Alexander Griffith:||We anticipate that the market will adopt this generally. We also know that a number of direct lending funds have already started using it on their transactions.|
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