Syndication

In loan financing, an arrangement in which multiple lenders provide parts of a loan facility, usually coordinated by one or more arrangers. It can involve initial commitments or later distribution and is not limited to billion-dollar loans.

Syndication in round numbers

Hypothetical: a US$500 million facility has lender commitments of US$200 million, US$150 million, US$100 million, and US$50 million. These commitments total US$500 million; they need not all be drawn immediately. The borrower’s enterprise value alone does not establish the facility size or number of lenders.

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