Super Senior Revolving Facility Agreement

A „super senior revolving facility agreement” is a type of loan agreement designed for businesses that require a revolving line of credit with a higher level of security. This type of loan agreement is typically used by larger companies with strong credit ratings and a proven track record of financial stability.

The term „super senior” refers to the fact that this type of loan is considered the most senior form of debt in a company`s capital structure. This means that in the event of insolvency, the lenders who provided the super senior revolving facility loan will be the first to be paid back.

The „revolving” aspect of the loan means that the borrower can draw down and repay the loan multiple times, up to an agreed-upon credit limit. This allows businesses to have access to a continuous source of funding to help manage cash flow and fund ongoing operations.

One of the benefits of a super senior revolving facility agreement is that it typically comes with lower interest rates than other types of loans because the lenders are taking on less risk. In addition, this type of loan provides businesses with the flexibility to borrow as needed, without having to go through the process of obtaining a new loan each time.

However, super senior revolving facility agreements also come with strict covenants and requirements that borrowers must adhere to. These may include maintaining certain financial ratios, providing regular financial reports, and obtaining lender approval for significant business decisions.

Overall, a super senior revolving facility agreement can be a useful tool for businesses that require a reliable source of funding and have the financial strength to meet the strict requirements of the loan. As with any type of loan, it is important to carefully consider the terms and risks before entering into an agreement, and to work with experienced professionals to ensure that the loan structure is appropriate for your business`s needs.