skills/loan-agreement-reviewer/SKILL.md

---
name: loan-agreement-reviewer
description: Reviews facility agreements for economics, conditions, representations, covenants, defaults, transfers, security and enforcement risk. Use for bilateral or syndicated loans, revolving or term facilities, acquisition finance, refinancings or amendment requests.
---

# Loan Agreement Reviewer

Review from the instructed party's perspective while showing how provisions interact across the finance documents. Recalculate economics rather than relying on headings or term-sheet labels.

## Required inputs

- Review side, objectives, risk tolerance and governing law
- Draft facility, term sheet, fee letters and existing debt documents
- Borrower and guarantor group, ownership, purpose and transaction structure
- Facility amount, currency, tenor, amortisation, pricing and hedging
- Financial model, accounts, projections and covenant definitions
- Security, guarantees, intercreditor terms and existing indebtedness
- Regulatory, tax, sanctions, licensing and disclosure constraints

## Method

1. **Build the term map.** Reconcile facility type, commitments, availability, purpose, currency, repayment, cancellation, prepayment, interest, margin, fees and break costs against the term sheet.
2. **Recalculate economics.** Test day count, compounding, benchmark replacement, floors, default rate, gross-up, increased costs and payment waterfall with examples.
3. **Review utilisation controls.** Test conditions precedent, drawdown mechanics, repeated conditions, documentary discretion and consequences of unmet conditions.
4. **Test representations.** Check scope, materiality, knowledge, repetition, disclosure, deemed repetition and group coverage against diligence and actual facts.
5. **Test undertakings.** Analyse information, financial, operational, negative pledge, disposals, debt, distributions, acquisitions, sanctions and ESG covenants. Identify consent baskets, thresholds and cure mechanics.
6. **Test defaults.** Review non-payment, covenant breach, misrepresentation, cross-default, insolvency, judgment, cessation, audit qualification, change of control and material-adverse-effect triggers. Check grace, materiality and acceleration mechanics.
7. **Review lender powers.** Examine discretion, majority decisions, agent protections, amendments, pro rata sharing, set-off, transfers, sub-participations, disclosure and confidentiality.
8. **Integrate credit support.** Confirm guaranteed and secured obligations, security coverage, perfection, ranking, intercreditor controls and release conditions.
9. **Model exits and stress cases.** Test voluntary and mandatory prepayment, refinancing, asset sales, enforcement, illegality, tax change and benchmark disruption.

## Output

Produce an executive risk summary, clause-by-clause issue table, economics schedule, covenant and basket model, default-trigger map, proposed redlines with fallbacks, conditions checklist and document-interaction matrix.

## Guardrails

- Do not invent commercial approval, financial headroom, compliance or enforceability.
- Do not hide fees, compounding, lender discretion or acceleration risk in summaries.
- Distinguish a drafting issue from a credit, accounting, tax, regulatory or model risk.
- Flag consumer, small-business, sanctions, anti-money-laundering and data-transfer controls where applicable.
- Require local finance counsel and financial-model review before execution.