Slides from Abu Dhabi Prroject Financing Conference (2002) on "Negotiating the Terms & Conditions of the Project Debt and Achieving Financial Close"

1. Negotiating the Terms & Conditions of the Project Debt and Achieving Financial Close Kathleen (Bradley) Chouaï

6. The Underwriting Process Two sample market flex clauses: “ Subject to the Facility Amount remaining unchanged, the Arrangers shall be entitled to change the pricing, terms or structure of the Facility if the Arrangers determine that such changes are advisable in order to ensure a successful syndication of the Facility.” “ Given the duration of the underwriting exposure of the Underwriters, the Borrower acknowledges that if, in the opinion of the Arrangers, it appears likely due to market conditions that a target hold level of US$[ ] each is unlikely to be reached through the normal syndication process on the basis of the agreed pricing of the Facility, the right is reserved, after consultation with the Borrower, to adjust the pricing of the Facility. The commitment to lend under the Facility Agreement is subject to the Borrower’s agreement to any adjustment made under this paragraph.”