LSTA’s Revolving Credit Agreement: Hear from the Experts

After six years of service as a Co-Chair of the American Bar Association’s Letters of Credit Subcommittee, Michael Evan Avidon has rotated off as a Subcommittee Co-Chair and been replaced by Paul M. Roder, who like Mike is a Banking & Finance partner at Moses & Singer LLP. Mary B. Rosen, Senior Counsel, Capital Markets (International), Wells Fargo Bank, continues to serve as the Subcommittee’s other Co-Chair.

The American Bar Association’s Letters of Credit Subcommittee will be sponsoring a Continuing Legal Education (CLE) program at the ABA’s upcoming Hybrid Business Law Section Meeting, 31 March – 2 April 2022. The CLE program will be available to ABA meeting registrants both online and in person at the meeting in Atlanta, USA. The title of the program is “What’s New in the LSTA’s Updated Form of Syndicated Revolving Credit Agreement?”

The program will discuss and explain modifications to the Loan Syndication & Trading Association (LSTA) form of syndicated revolving credit agreement, which includes a letter of credit subfacility. LC-related modifications include:

1. greater recognition of the role of Issuing Banks as distinct from the Administrative Agent, Swingline Lenders, and Lenders;
2. emphasis on the independence of LCs as separate from the credit agreement and other loan documents;
3. clarification of the availability of LCs for subsidiaries of the main borrower; and
4. express mention of the separate entity or branch separateness doctrine that treats branches of banks as if they were separate legal entities for certain purposes, including with respect to LCs.

In addition, the program will discuss and explain other important changes to the form, including the replacement of LIBOR-based interest rate provisions with SOFR-based interest rate provisions.

The program will be presented by three expert panelists:

• Mike Avidon (Partner, Moses & Singer LLP);
• Bridget Marsh (EVP and Deputy General Counsel, LSTA); and
• Jeffrey Nagle (Partner, Cadwalader, Wickersham & Taft LLP).