Bilateral Loans vs.Syndicated Loans: What’s the Difference?
Loan Agency Services - The Value of the Administrative Agent (Timeliness, Trades, and Taxes)
LIBOR to SOFR in the Syndicated Loan Market
Borrowers in need of a loan for corporate purposes such as mergers and acquisitions or working capital expenditures often obtain syndicated or bilateral loans for financing. Here we provide a simple way to distinguish between the types of loans and understand the various roles of the key players in the capital markets.
Loan agency is essential for running a smooth transaction whether it be financed via a bilateral or syndicated loan. A syndicated loan is often used when a financing is very large and/or comes with risks that would be better shared via a group of lenders. A bilateral loan typically is between a single lender and a smaller business that does not carry much risk for the individual lender.
No matter which type of loan is used, an administrative agent serves as a key coordinator to carry out administrative tasks related to the credit agreement. Among the agents’ roles are providing financial statements, calculating interest, processing trades and compiling compliance materials. In the case of syndicated loans, the agent acts upon the direction of majority lenders.
Bilateral Loans vs.Syndicated Loans: What’s the Difference?
Loan Agency Services - The Value of the Administrative Agent (Timeliness, Trades, and Taxes)
LIBOR to SOFR in the Syndicated Loan Market
Managing Director, Loan Agency tel:612-509-2323
Renee is the managing director of the SRS Acquiom Loan Agency Group. With more than 15 years of experience as administrative and collateral agent on loan transactions and more than ten years managing teams in loan agency and restructuring products, she is an accomplished financial industry professional and leads the loan agency business globally.
Before joining SRS Acquiom, Renee served as an administrative vice president at Wilmington Trust, N.A., most recently leading the loan agency and restructuring products. In addition to her 10 years at Wilmington Trust, she also worked for Wells Fargo Bank, N.A. in the corporate trust and shareholder services departments.
Renee has a Juris Doctorate from Mitchell Hamline School of Law in Minnesota, and a B.A. in political science and history from Azusa Pacific University in Azusa, California.
