Market leading insight for tax experts
View online issue

Loan agreements: the borrower’s perspective

Speed read

The starting point for a syndicated loan to a UK borrower is almost invariably the ‘LMA’ documentation. This includes a tax clause which sets out the circumstances in which the borrower will be required to gross up a lender if interest has to be paid net of tax and provides lenders with a wide-ranging tax indemnity. The borrower will be told that this clause is ‘market standard’. However, it is in certain significant respects too heavily weighted in favour of the lenders. The main borrower concerns are considered below and suggestions are made for resolving them.

If you or your firm subscribes to Taxjournal.com, please click the login box below:

If you do not subscribe but are a registered user, please enter your details in the following boxes:

Alternatively, you can register free of charge to read a limited amount of subscriber content per month.
Once you have registered, you will receive an email directing you back to read this article in full.
EDITOR'S PICKstar
Top