M&T Bank's Loan Syndication Group acts as an arranger of large senior credit facilities for middle market companies in need of multi-bank financing. The Bank, in its role as Administrative Agent, structures the credit with the intention of distributing a portion of the debt to other bank loan investors via sale of participation. This arrangement allows M&T to accommodate the senior debt needs of its clients while maintaining a prudent level of exposure. Syndicated credits typically fall into the following categories:
- Working Capital Revolvers and Term Loans
- Commercial Real Estate Loans
- Acquisition and Project Finance
- Leverage and Management Buyouts
- Asset Securitization
- Leasing Transactions
When combined with our activities in the Private Placement arena and Corporate Advisory, the Bank can accommodate substantially all of the capital raising needs of a middle market company. Syndicated lending professionals at M&T specialize in the structuring, documentation, and distribution of bank loans; and, their experience facilitates timely response and seamless execution. Likewise, M&T's diversified pool of bank and institutional investors allows the Group to align the unique requirements of our clients with the varied appetites of investors. Characteristics of syndicated lending transactions at M&T Bank include:
- Size: Typically greater than $30MM
- Maturities: Loan maturities range from 180 days to 7 years
- Pricing: Credits are generally priced by adding a spread (in basis points) to a variable rate index such as LIBOR or the Fed Funds rate. Fixed rate pricing is available where appropriate.
- Amortization: Interest-only on revolving credits with the balance due at maturity. Term loans, again depending on use of proceeds, require more refined levels of amortization.
- Call Option: Bank loans are fully prepayable, at par, at any time (unless a fixed rate pricing is used).
- Security: Secured or unsecured.
- Covenants: Based on the credit characteristics of an Issuer; however, covenants typically include leverage and debt service coverage tests.
Benefits to the Issuer include flexibility in structuring and the ability to act quickly when the business climate or Company activities change. As is the case with private placements, public disclosure is not required for Issuers of syndicated debt.
To find out more, please contact John Whalen by phone at 410-244-3849 or by email at email@example.com.