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An Intercreditor Agreement sets out the rights and priorities between different lenders who provide loans to the same borrower. In Irish finance deals, these agreements are especially common when companies have both senior secured loans and junior or mezzanine debt.

The agreement spells out crucial details like who gets paid first if the borrower defaults, which lenders can take enforcement action, and how long junior lenders must wait before acting. Under Irish law, these agreements help prevent conflicts between lenders and provide clarity for all parties, particularly in complex corporate financing structures where multiple banks or institutions are involved.

You need an Intercreditor Agreement when multiple lenders provide different types of loans to your business. This becomes essential in Irish financing deals involving both senior bank loans and subordinated debt, especially during corporate refinancing or when taking on additional funding rounds.

The right time to put this agreement in place is before finalizing any multi-lender financing arrangement. It's particularly crucial for Irish companies seeking growth capital through layered debt structures, as it prevents future disputes by clearly establishing payment priorities and enforcement rights. Many businesses arrange it alongside their initial senior facility agreement to smooth the path for future funding.

• Senior-Mezzanine Intercreditor: Used when companies have both senior bank debt and mezzanine financing, setting clear payment rankings and enforcement rights between these lenders
• Syndicated Loan Intercreditor: Coordinates multiple banks in a lending syndicate, managing voting rights and shared security arrangements
• Bond-Loan Intercreditor: Structures the relationship between bondholders and bank lenders, common in Irish corporate financing
• Project Finance Intercreditor: Tailored for large infrastructure projects with multiple funding sources, addressing specific project risks and cash flow waterfalls

• Senior Lenders: Usually banks or financial institutions providing the main secured loans, they hold primary rights under the Intercreditor Agreement
• Junior Lenders: Typically mezzanine funds or alternative lenders who accept subordinated positions in exchange for higher returns
• Corporate Borrowers: Irish companies taking multiple types of debt, who must understand and comply with the agreement's terms
• Legal Advisors: Irish corporate law firms who draft and negotiate these agreements, ensuring all parties' interests are protected
• Security Trustees: Hold security on behalf of multiple lenders and manage enforcement rights according to the agreement

• Loan Details: Gather all facility agreements, amounts, interest rates, and repayment terms for each lender involved
• Security Package: List all existing and proposed security arrangements, including rankings and property charged
• Enforcement Rights: Define specific triggers and standstill periods for each lender class
• Payment Waterfall: Document the exact order of payments and distribution of proceeds
• Voting Mechanics: Establish decision-making thresholds and consultation requirements
• Document Generation: Use our platform to create a customized agreement that incorporates all these elements while ensuring Irish legal compliance

• Party Definitions: Clear identification of all lenders, borrowers, and security trustees involved
• Ranking Provisions: Explicit statement of payment priorities and security interests among creditors
• Enforcement Protocol: Detailed procedures for taking action against defaulting borrowers
• Standstill Provisions: Specific timeframes junior creditors must wait before taking enforcement action
• Payment Mechanics: Clear rules for distributing payments and enforcement proceeds
• Amendment Process: Requirements for modifying agreement terms and required consent levels
• Irish Law Clause: Explicit statement that Irish law governs the agreement's interpretation and enforcement

An Intercreditor Agreement differs significantly from a Bond Issuance Agreement, though both are important in Irish corporate finance. While they often work together, their purposes and scope are distinct.

• Primary Purpose: Intercreditor Agreements manage relationships between multiple lenders, while Bond Issuance Agreements establish terms between a company and its bondholders
• Parties Involved: Intercreditor Agreements involve multiple lenders of different rankings, whereas Bond Issuance Agreements primarily involve the issuer and bondholders as a single class
• Enforcement Rights: Intercreditor Agreements focus on priority of payments and enforcement actions, while Bond Issuance Agreements detail interest payments, redemption rights, and default remedies
• Legal Framework: Under Irish law, Intercreditor Agreements regulate creditor relationships, whereas Bond Issuance Agreements govern securities issuance and trading