14 Jun 2022
Go with the Flow: “Waterfall” Provisions in Intercreditor Agreements
A “waterfall” provision in an intercreditor agreement refers to the order of application of funds or proceeds and is a repayment mechanism by which funds from a loan are paid out in an enforcement scenario. Review this practice note to understand the significance of using the waterfall and when the waterfall applies in the intercreditor agreement.
Related Content
- Intercreditor Agreements Resource Kit
Access the resources you need to know about intercreditor agreements. This resource kit includes Practical Guidance materials on drafting and negotiating intercreditor agreements and different sources of debt financing, including detailed practice notes, templates, and checklists.
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Put pen to paper and draft (or review) your intercreditor agreement using this template as a starting point.
- Agreement Among Lenders
Learn about the intercreditor arrangement that is the path of least resistance. The Agreement Among Lenders is a central document in a unitranche facility that addresses the allocation of the loans, the division of the interest rate, and the priority of the payments, and includes some variation of a standstill provision.
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