Market Trends 2020/21: Competitive Bid Loan Provisions

Summary

This practice note provides an overview of competitive bid loan provisions and discusses recent market trends in publicly filed credit agreements since the last quarter of 2020. A competitive bid loan facility is a feature that can be added to a credit agreement to provide additional pricing flexibility for investment grade borrowers. Competitive bid loans allow the borrower to solicit bids from its lenders to provide loans on maturities and interest rates different than those applicable to the standard revolving loans.