Speaking a common language: how different is the LSTA’s new form of revolving credit facility from the LMA equivalent?

On the 19th October 2017, the Loan Syndications and Trading Association (“LSTA”) published a form of investment grade revolving credit facility (the “LSTA RCF”). It is its first full-form credit agreement, and signals a change in approach for the LMA’s US sibling. This publication discusses some of the key areas where the terms of the LSTA RCF and the LMA’s equivalent investment grade templates diverge. In doing so it also highlights some of the differences between the legal regimes, market practice, and market dynamics in the US and in Europe.

This publication first appeared in the Loan Market Association’s 2017 end of year newsletter.