If your company requires growth or debt capital in excess of $40 million or more, Fifth Third Bank specialists can bring together a select group of lenders and create a syndicated loan solution specifically designed to dovetail with your business strategy.
Our extensive experience as a lead arranger gives clients vital access to an array of lenders and lending options. Fifth Third Bank will select the lenders, and then structure, arrange, and administer the loan—giving you a single lead syndicator from start to finish.
What Is the Purpose of a Syndicated Loan?
Our objective is always to provide financing for Fifth Third Bank clients on the best terms that the market is able to support. Syndicated loans are generally used for:
- Leveraged buyouts
- Dividend payments
- Working capital
- General corporate purposes
Who Are the Lenders?
Lenders are attracted to syndicated loans because they achieve a senior position in the capital structure, the loan is secured by assets, maintenance covenants enable regular financial performance, and there is a high recovery rate in event of default. The diverse group of lenders who form the syndicate is usually made up of:
- Prime Rate Funds
- Insurance Companies
- Private Equity Funds
- Pension Funds
- Large Banks
What Are the Benefits of Fifth Third Bank Syndicated Loans?
Again, the first and foremost benefit is access to a large amount of financing though a one-stop shop. But additional benefits make a Fifth Third Bank syndicated loan a solid financing choice:
- Access to broader financial relationships than a single bank loan
- Simpler documentation: one underlying credit agreement instead of separate documents with a variety of lenders
- Borrowing coordinated through the agent—Fifth Third Bank as lead bank—for single-source fund disbursement and service
- Frequently more cost-effective than a series of bilateral loans
- A single champion with the lending market
How Are Syndicated Loans Structured?
The two primary categories in the corporate loan market are:
- Investment grade loans
- Leveraged loans
Across both categories we offer several solutions:
Revolving Credit allows borrowers to re-borrow up to the approved borrowing amount
- Letters of Credit are promises provided by banks to third parties to pay off debt if the borrower cannot meet their obligations
- Term Loan is an installment loan, fully funded on Day 1
- Delayed Draw Term Loan is not required to be fully funded on Day 1, but can be funded later for a specific purpose
A Single Syndication Team from Start to Finish
When you take a loan from a Fifth Third Bank syndication, you work with one syndicator from start to finish. From initial proposal to loan mandate, and through execution and closing, you’ll work with a single syndication team.
Find out more about our Syndicated Loans. Contact our Fifth Third Bank Syndicated Finance team.
Subject to credit review and approval.
Deposit and credit products provided by Fifth Third Bank. Member FDIC.