Voting Rights

Last Updated: Jun 7, 2019

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Voting rights refer to the amount of required lenders needed to approve changes to a multi-bank credit agreement. These can vary by deal but often are based on >50% of commitments. For example, if a deal had 3 banks each holding 33.3% of the commitment, approval from 2 of the 3 banks (66.6%>50%) would be required for certain amendments to the credit agreements. Each credit agreement will be different but it is important to understand what can and cannot be done without your say.

ABF Journal article:
http://www.abfjournal.com/articles/the-skinny-on-workouts-dynamics-in-bank-syndicates/