This article is part of a series comparing and contrasting New York and English law and market practice relating to syndicated lending.
In the December/January issue of IFLR, we considered the differences between New York and English law and practice relating to the transfers of interests in loans in the secondary market. This article discusses the application of those mechanisms to debt repurchases.
In both the English and US markets, debt repurchases have become common. Where existing loan documentation does not contemplate a repurchase programme, it is more likely to be achievable without lender consent under an LMA-style transaction than one based on LSTA documentation, where transfers to borrowers and their affiliates are likely to be expressly or effectively prohibited. With the recent changes to the standard LMA documentation, the trend in the English market seems to provide for repurchase mechanisms at the outset of a transaction, without the...