Of all of the provisions in syndicated lending commitment documents, the right of the arrangers to "flex" the terms of a committed financing in order to meet their minimum hold – by, for instance, increasing its pricing – is one of the most important. It is also one of the most sensitive. Publicly-disclosed flex arrangements would distort the primary trading market in favour of debt purchasers. Consequently, flex provisions are not disclosed to potential syndicate members. In the context of UK public takeovers, however, that approach is no longer possible.
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