July 11, 2025 - The first week of the LSTA 2025 Summer Series wrapped up on July 10th, bringing together thousands of members for a dynamic mix of market insights and legal deep-dives.

Day One: Evolution of the U.S. Loan Market: Kicking off the series was Ioana Barza, Global Head of Research at KBRA DLD, who delivered a compelling presentation on the Evolution of the U.S. Loan Market. Barza traced the loan asset class’s transformation from a niche investment in the 1990s to a mainstream fixed income allocation today. She explained how the market has matured—fueled by growing demand from a wide array of investors, including CLOs, pension funds, insurance companies, and sovereign wealth funds. Barza also emphasized that the loan market is no longer immune to external shocks, with macroeconomic and geopolitical events now driving significant swings in loan issuance.

Of particular interest was her insight into the rise of direct lending. As sponsors increasingly turn to private credit for large buyouts, direct lenders are stepping up and taking down sizable portions of deals themselves. For borrowers, speed and simplicity of execution continue to be major draws.

Days Two to Four: Demystifying the Credit Agreement: Following Barza’s market overview, Milbank partners Meir Hornung and Spencer Pepper led a comprehensive three-day “teach-in” on credit agreements, using LSTA’s Complete Credit Agreement Guide as the foundational text.

• Day One: The duo introduced the anatomy of credit facilities, distinguishing between term loans and revolvers, and delving into specialized instruments like standby letters of credit.

• Day Two: Members explored borrower representations and warranties, with a spotlight on SunGard conditionality — a crucial concept in acquisition financings designed to align deal conditions and reduce execution risk. Also covered was the role of the administrative agent, which, despite the name, serves the lenders—not the borrower—and acts in a purely ministerial capacity.

• Day Three: The final session unpacked voting mechanics, pro rata sharing provisions, and the vital difference between assignments and participations. Assignments transfer full lender rights to the assignee, establishing direct legal ties to the borrower. Participations, meanwhile, offer liquidity without transferring legal title, making them a flexible — but limited — tool for managing credit exposure.

The partners also highlighted the LSTA’s deemed consent provision—where a borrower is considered to have approved an assignment if no objection is raised within five business days.

Looking Ahead

A big thank-you to all who participated in week one! We’re excited to continue the momentum in week two. Click here for slides and session replays.