7. Delay: If the borrower has not paid the full amount of the loan by the due date of the final payment, the lender charges the borrower interest on the outstanding balance of 20 percent (%) per annum. The primary purpose of a syndicated loan is to spread the risk that would normally exist for an individual borrower. Since the value of this type of investment far exceeds ordinary loans, the risk is that the borrower`s default could have a disastrous effect on an individual lender. Interest rate: The lender`s profits are calculated on the basis of interest and fees. The interest rate is set according to the different borrowers, in accordance with the interest rate guidelines, rules and provisions of the loan agreement. Syndicates can use a variety of currencies in their credits, depending on customer needs. The advantage of syndicated loans is that multiple currencies can be used in the group if the borrower requires it. Interest: The borrower is required to pay interest of 12 percent (%) per annum, the “interest”, which must be paid at the same time as the amount of the loan principal at the end of the loan maturity. The negative covenants are similar to the provisions of the investment agreement, which ignore the positive voting rights of financial investors on certain issues. Simply put, for the acts set out in the contract, the company must obtain permission from the lenders. Otherwise, there will be a “default event” that will force the company to repay the lenders. Depending on circumstances such as the borrower`s financial situation and the nature and value of the transaction, the components of these covenants vary from agreement to agreement.

However, some of the most common species are the following: this clause can be qualified, together with the cross-default, as ancillary rights of the lenders (in case of default of the borrower). In the event of default, lenders have the right to accelerate or terminate other loans and demand repayment of the outstanding loan. As a rule, lenders try to restructure the investment in the event of default and the right to acceleration is instead used as leverage to negotiate the restructuring operation. For the outflow of syndicated credits, this clause must be triggered. Situations in which this will occur include non-payment of the amount due, breach of financial obligations, insurance or guarantees, insolvency or commencement of liquidation, as well as insolvency and other proceedings. . . .