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Syndicated Loans Overview with Apple Capital Group
SYNDICATED LOANS

A syndicated loan consists of a structure in which a financial institution exercises leadership in a credit operation and brings together a group of banks and/or other institutions (Participants), to respond to the needs of a client under the umbrella of a single loan. Under this structure, creditors share the same rights and obligations (pro rata).

Apple Capital Group (ACG) – Participant’s relationship is founded on the pro rata principle, where the creditors of the client participate proportionately as partners in the rights and obligations they have undertaken under the loan agreement, based on the respective financial contributions made. This is how the creditors distribute income and expenses among themselves according to the corresponding share.

Syndicated loans can take various forms depending on the interest and the risk level of the lead financial institution (holder and/or administrator of the loan) and the Participants. Under this premise, syndicated operations in ACG can take the form of co financing or an A/B loan.

CO-FINANCING
With this product, ACG and the Participants jointly meet the borrowing needs of a client. In this manner, the financial conditions of the loan can be the same if ACG and these institutions agree on common conditions, or can simply be structured independently according to the interests of each one. A co-financing can be structured: (i) under a single loan agreement, or (ii) by separate agreements, with an agreement between creditors.

A/B LOAN
A/B Loans preserve the concept of pro rata, but change the capacity of each creditor to enforce those rights. The main change consists on ACG’s actions as sole holder of the whole A/B Loan (that is, the Lender of Record), which results in a higher level of control over its management by ACG.

As holder of the A/B Loan, ACG will:
Manage the credit in its entirety in relation to the client.
Finance the part of the loan (Tranche A) in which the Participants do not take part.
Sell a portion of the loan (Tranche B) to the Participants under participation agreements.
Act on its own behalf in Tranche A and have certain rights and obligations with the Participants of Tranche B.

The A/B Loans may vary in relation to how Tranche B is structured. This tranche can be structured as follows:
Sale of the total tranche to a group of Participants selected by ACG. It is worth noting that a bank can be selected as Co-Arranger who will represent the pooled interests of the Participants before ACG and the client.
Sale of the total tranche to a trust, whose sole purpose would be to issue securities to be sold to institutional investors.

We offer you an experienced group of professionals solely dedicated to structuring, arranging, and acting as administrative agent for multi-bank syndicated loans.

Our Process
We take the time to fully comprehend your company’s strategy and growth plans
We then craft a customized financing solution that helps you achieve your goals
Benefits of working with Apple Capital Group
Decades of experience in helping companies
finance mergers and acquisitions (M&A)
new construction associated with corporate expansions
large equipment purchases
dividend recapitalizations
other large capital events
Utilizing a client-specific, problem-solving mentality to achieve financing goals and needs (no “cookie cutter” approach)
Emphasis on professionally prepared materials to present our clients most appropriately and effectively to the marketplace
Being respected industry veterans that possess a large network of partner bank relationships
Knowing the bank market and demonstrated ability to deliver successful closings at agreed-upon terms and conditions
We excel in providing certainty of execution to our clients that have a need to raise large amounts of bank capital for extremely important, time-critical situations

For more information, please contact Mark Funderburk, Senior VP of Capital Markets, at 866-611-7457 FREE or email mfunderburk@applecapitalgroup.com