Korb credit facilities: In banking/bond transaction structures, the basket of credit facilities is a potential candidate for any type of third-party debt, as the definition of the credit facility is often very broad. These baskets are often first sized to provide additional capacity or „head freedom“ over the initial revolving credit facility. However, companies need to be aware that if they use this basket for additional debt, they can effectively prevent them from fully using their revolving credit facility if they do not have the capacity to do so at this stage. As explained below, the major advantage of access to this basket is that creditors generally enjoy „super senior“ priority status, which means that these creditors will be paid to other creditors as the proceeds of a possible implementation of the transaction guarantee. This is perhaps the simplest way to give liquidity providers the first priority status they probably need for companies in financial difficulty. Additional freebie capabilities can often be generated by prepayment or repurchase of long-term debt under the loan agreement (or sometimes another bet debt), which are permitted on the basis that the borrower has taken the leverage and should be able to return the maturities to the closing date level. As a general rule, proportional debt advances, junior/second pawn receivables and unsecured debt are prevented from contributing to the freebie pre-pay basket, in order to avoid the withdrawal of the proportional examination requirements from this capacity. Similarly, advances from other debts are often prevented from contributing to this basket. The corresponding costs, including IDOs and phone calls, as well as costs and expenses, can also contribute to free capacity.
To the extent that the additional provisions do not provide for an advance fee for existing lenders: to participate in the new additional debt (which has largely disappeared from the top tier/large cap transactions, but which can nevertheless occur in medium and/or private credit credits), the existing union may first know the additional new debts when the additional facility documents are published by the lender`s portal on the lender`s portal. This approach is likely to be consistent with the terms of the most recent loan contracts, which provide that as long as the liability meets the capacity limits and conditions applicable to additional debts, as defined by the parent company (and sometimes with a formal certification requirement), the agreement of an existing lender is not necessary and that the agent is entitled to accept (and sign) additional debt documents notified to him. If changes are required to the loan file to take on these additional debts, the agent and the security officer are also authorized (and this authorization is granted by the other parties to the financing in the loan agreement) in order to make changes or new documents that are reasonably requested by the parent company to facilitate the setting of the new additional debt.