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Copyright © 2012, Campbell R. Harvey. All Rights Reserved.
A loan made by many lenders to a single borrower. Syndicated loans are made in large amounts that would be too big for one lender to handle. In many ways, a syndicated loan operates like an ordinary loan; there is an interest rate (fixed or floating) and a time until repayment is due. It may be a direct loan or a revolving line of credit or a combination of the two. However, syndicated loans are usually made on a best effort basis, meaning that if the lenders are unable to find enough capital or additional lenders to cover the amount requested, the amount borrowed will be less than anticipated. They are common in leveraged buyouts.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
syndicated loana LOAN which is provided by a number of financial institutions on a collective basis, each subscribing a specified amount of money. Syndicated loans are usually put together by a ‘lead’ organization, for example, a commercial bank.
Collins Dictionary of Business, 3rd ed. © 2002, 2005 C Pass, B Lowes, A Pendleton, L Chadwick, D O’Reilly and M Afferson