Material Nonpublic Information in Syndicated Loan Transactions

Summary

This practice note discusses issues that arise from the disclosure of material nonpublic information in syndicated loan transactions with publicly traded borrowers and how Regulation Fair Disclosure (commonly referred to as "Regulation FD") applies to the syndicated loan market. The lenders, prospective lenders, arrangers, and their representatives participating in syndicated loan transactions (commonly referred to as "loan market participants" or "LMPs") have access to and use information concerning the borrower. This information includes significant information about the borrower that is not available to the general public. The loan market participants and the borrower must consider securities laws and regulations, including Regulation FD, common-law claims, and contractual confidentiality obligations in how they use such information.