Ƶ

Loan Note Subscription Agreement Template for England and Wales

A Loan Note Subscription Agreement under English and Welsh law is a legally binding document that sets out the terms under which investors subscribe for loan notes issued by a company. It governs the relationship between the issuer and subscribers, detailing subscription mechanics, conditions precedent, representations and warranties, and ongoing obligations. The agreement typically includes provisions for interest payments, repayment terms, and may include conversion rights or security arrangements.

Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
Get template free

Your data doesn't train Genie's AI

You keep IP ownership of your docs

4.6 / 5
4.6 / 5
4.8 / 5

What is a Loan Note Subscription Agreement?

A Loan Note Subscription Agreement is commonly used when companies seek to raise debt finance through the issue of loan notes to investors. This document, governed by English and Welsh law, provides a comprehensive framework for the subscription process, including payment terms, conditions for completion, and investor protections. It's particularly useful for private companies seeking alternative financing options to traditional bank lending, and can accommodate various structures including secured, unsecured, or convertible notes. The agreement ensures compliance with UK financial services regulations and provides certainty for both issuers and investors.

What sections should be included in a Loan Note Subscription Agreement?

1. Parties: Identifies the issuer and subscriber(s) of the loan notes

2. Background: Sets out the context and purpose of the loan note subscription

3. Definitions: Defines key terms used throughout the agreement including regulatory references to FSMA, Companies Act etc.

4. Subscription: Details of the subscription amount, price, and mechanics

5. Conditions Precedent: Conditions that must be satisfied before subscription completion

6. Completion: Mechanics and timing of completion of the subscription

7. Representations and Warranties: Standard representations from both issuer and subscriber

8. Covenants: Ongoing obligations of the parties

9. Events of Default: Circumstances constituting default and consequences

10. Boilerplate Provisions: Standard legal provisions including notices, assignments, amendments

What sections are optional to include in a Loan Note Subscription Agreement?

1. Security: Details of any security package - include when loan notes are secured

2. Conversion Rights: Terms of conversion into shares - include for convertible loan notes

3. Interest: Interest calculation and payment terms - include when interest is payable

4. Transferability: Terms governing transfer of notes - include if notes are transferable

What schedules should be included in a Loan Note Subscription Agreement?

1. Form of Loan Note Instrument: The formal instrument creating the loan notes

2. Form of Note Certificate: Template certificate evidencing ownership

3. Conditions Precedent Documents: List of required completion documents

4. Form of Transfer Instrument: Template for transferring notes if applicable

5. Warranties: Detailed warranties given by the issuer

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

Jurisdiction

England and Wales

Publisher

Ƶ

Cost

Free to use

Find the exact document you need

Subscription Service Contract

An England & Wales contract outlining terms for subscription-based service models, ensuring compliance and protecting involved parties.

Download

Short Form Subscription Agreement

An England & Wales legal document for simplified share subscription in smaller investments or familiar party transactions.

Download

Fund Subscription Agreement

A legal contract in England & Wales outlining terms for the lease of commercial property between parties.

Download

Startup Subscription Agreement

An English law agreement governing the subscription of shares in a startup company by investors.

Download

Advanced Subscription Agreement

An English law agreement where investors provide immediate funding in exchange for future shares, typically issued at a discount upon a qualifying event.

Download

Unit Subscription Agreement

An English law agreement documenting the terms of an investor's subscription for units in an investment vehicle.

Download

Monthly Subscription Contract

A legally binding agreement under English and Welsh law governing recurring service provision and payment terms between provider and subscriber.

Download

Note Subscription Agreement

An English law agreement governing the terms under which investors subscribe for debt securities issued by a company.

Download

Subscription Service Agreement

A legally binding agreement under English and Welsh law governing the provision of subscription-based services between a provider and subscriber.

Download

Loan Note Subscription Agreement

An English law agreement governing the subscription of loan notes by investors, setting out terms between issuer and subscribers.

Download

Shares Subscription Agreement

An English law agreement governing the issuance of new shares by a company to subscribers, setting out terms, conditions, and parties' rights and obligations.

Download
See more related templates

ұԾ’s Security Promise

Genie is the safest place to draft. Here’s how we prioritise your privacy and security.

Your documents are private:

We do not train on your data; ұԾ’s AI improves independently

All data stored on Genie is private to your organisation

Your documents are protected:

Your documents are protected by ultra-secure 256-bit encryption

We are ISO27001 certified, so your data is secure

Organizational security:

You retain IP ownership of your documents and their information

You have full control over your data and who gets to see it