London, 07 May 2026 – The European Leveraged Finance Association (ELFA), has today with partners, global law firm Akin and Covenant Review, the expert on covenant analysis, published the fifth issue of its Transferability Series focused on loan transfer provisions. In this instalment, ELFA has observed issues with minimum transfer amounts and transfer fees, which often lead to delayed settlements, the creation of extra tickets, difficulty in trading following partial prepayments, increased transaction costs and additional fees.

ELFA proposes removal of minimum transfer/hold amounts, removal of minimum transfer amounts that exceed minimum hold, syndicated expansion without borrower concern, and post-primary delayed draw tranches with a smaller minimum transfer amount within a specified duration of time. Furthermore, ELFA proposes standardisation of fees to eliminate fronting workarounds, including additional language in the SFA to ensure that only one fee is payable for related simultaneous assignments or transfers.

You can read the full observations and recommendations here.

ELFA CEO’s, Ed Eyerman, commented: “In our fifth instalment of the Transferability Series, we highlight the issues with minimum transfer amounts and transfer fees that can lead to difficulties for lenders. As part of our analysis, we have proposed solutions, and will look to work with key stakeholders, including lenders, legal advisers, and market participants, to further discuss the proposals and adoption of best practices.”

The previous Transferability Series papers focus on the non-uniform definition of ‘Loan to Own/Distressed Investors’, the lack of clarity with whitelists and SFAs and the growing use of portability provisions in leveraged loan documentation. You can access it here.

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