A revolving credit facility is a flexible bank loan that a business draws on and repays over time, up to a set limit, with interest charged on drawn amounts. In England, a solicitor typically drafts or negotiates the facility agreement, intercreditor and security documents, and any ancillary hedging or treasury arrangements; reviews drawdown notices, compliance certificates, and undertakings; and supports ongoing compliance, amendments, and refinancings. The work is driven by the borrower’s business needs, the lender’s risk controls, and market terms set by the governing facility agreement and related security package.
What a solicitor handles in these matters
A solicitor handles the drafting and negotiation of the facility agreement, security package (such as debentures and charges), guarantees and intercreditor arrangements, as well as drawdown, repayment and enforcement provisions. They review and prepare covenants, representations, and undertakings, liaise with lenders, corporate secretaries, and auditors, and coordinate with any hedging or cash management documentation. They ensure compliance with applicable law and market practice under English law, and manage changes arising from amendments, waivers, or restructurings.