Unitranche Facilities

Summary

This practice note discusses unitranche facilities. A unitranche facility combines what would otherwise be separate first and second lien facilities into a single secured loan facility provided by the same group of lenders and documented through a single credit agreement with one set of collateral documents. Unitranche facilities are often used by middle-market borrowers in order to reduce their closing costs and allow the loan facility to be closed more quickly than is possible with first lien/second lien transactions.