ACT Issues A Supplement To Its Borrowers' Guide To LMA Loan Documentation

The UK's Association of Corporate Treasurers (ACT) recently issued a supplement to its guide for borrowers to the Loan Market Association (LMA) investment grade forms of facility agreement and key negotiating points for borrowers (the ACT Borrower Guide) which will be of interest to those looking to review and negotiate such a facility agreement.

The LMA forms of investment grade facility agreement have been changed a number of times since publication of the ACT Borrower Guide in 2013, in particularly in respect of:

• amendments to the definitions of "LIBOR", "Euribor" and related provisions arising from the reforms to their benchmark process and administration;  
• an optional adjustment to the borrower's right to prepay a defaulting lender;