Market Trends 2023/24: Erroneous Payment Provisions

Summary

This practice note provides an overview of the purpose and key characteristics of erroneous payment provisions common to syndicated debt financing agreements and discusses market trends in certain publicly filed deals from the fourth quarter of 2023 through the third quarter of 2024. Erroneous payment clauses are included in syndicated loan transactions to require lenders to return payments paid to them in error by the administrative agent.