Accordion Lender Supplement

Summary

This template is an accordion lender supplement used in connection with the exercise of an accordion by a borrower. Delivery of this completed template is a closing condition for the exercise of the accordion. This template includes practical guidance and drafting notes. An accordion is a feature of a credit agreement in which existing lenders increase their revolving commitments or new lenders provide new revolving commitments to the existing facility. This template includes options for both an increase of commitments (referred to as an increasing lender supplement) and the addition of commitments by new lenders (referred to an augmenting lender supplement). Existing lenders are required only to agree to provide the new commitments, while new lenders must agree to be bound to the terms and conditions of the loan documents. The borrower is required to represent and warrant as to the absence of a default (or whatever the credit agreement requires as a condition to the exercise of the accordion). This template should be delivered after the borrower makes a request for additional commitments (if required by the credit agreement). For more on the accordion feature, see Incremental Facility Clauses (Credit Agreement), and The Client Asks: How Do We Exercise an Incremental Facility?. For the template lender supplement used in incremental facilities, see Incremental Term Loan Lender Agreement.