Incremental Term Loan Lender Agreement

Summary

This template is an incremental lender supplement used in connection with the exercise of an incremental facility by a borrower. This template includes practical guidance, drafting notes, and an alternate clause. In an incremental facility, existing or new lenders agree to provide loans typically constituting a new tranche of loans or an increase to an existing tranche of loans. The borrower will have to initiate the process by making a request for the incremental loans, followed by the delivery of this agreement and customary documentation as closing conditions. This supplemental agreement may also be referred to as an incremental amendment and includes the terms of the new facility, including maturity, amortization, and applicable rate. The incremental lender is required to be bound to the terms of the credit agreement and make other representations and assumptions that are standard for new lender assignments. For a full listing of key content covering amendments, consents, and other modifications for loan documents, see Amendments, Consents, and Waivers Resource Kit. 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 for accordion features, see Accordion Lender Supplement.