Finance parties' duties

Facility agent

The facility agent is an important party in a syndicated loan transaction. It acts as the representative for the lenders and as a ‘post box’ between various parties in the transaction.

The specific functions and duties of the facility agent are precisely defined in the LMA facility documentation. The LMA documentation also includes certain protections for the facility agent. When reviewing these terms in the facility documentation, the facility agent will look to ensure that it does not take on onerous, wide-ranging powers on behalf of the lenders and that its duties are purely mechanical and administrative.

The facility agent’s duties are discussed in more detail in Practice Note: The facility agent.

Security agent

In a syndicated loan transaction, the security agent