ELFA publishes Annual Review 2024/25
ELFA is delighted to share its Annual Review of our 2024/25 membership year.
Already a member? London, 13 October 2025 – The European Leveraged Finance Association (ELFA), has today published the third instalment in its Transferability Series, focusing on on the lack of clarity and consistency in senior facilities agreements (SFAs).
Lenders face persistent challenges with SFAs. Compressed timelines, especially in new money transactions, limit meaningful review and negotiation. Analysts often lack early covenant disclosures, and posted SFAs may diverge from final terms, reducing clarity. Portability clauses and Cov-Lite structures have weakened protections, while new lenders in repricings frequently encounter difficulties accessing existing documents. Over-reliance on precedent forms risks perpetuating outdated and inflexible terms.
To address these issues, ELFA proposes the following: lenders should be given a minimum of three business days to review long-form SFAs in new deals, along with a redline of the updated Syndication Term Sheet. Standardised drafting and clearer definitions across SFAs would improve consistency, and new lenders should receive the existing SFA to ensure full understanding of the transaction. These steps are essential to strengthen transparency, predictability, and confidence in the leveraged finance market.
Ed Eyerman, CEO at ELFA, comments: “SFAs are a core component of leveraged finance. In this third instalment, we highlight concerns that, if left unaddressed, could undermine lenders confidence and market integrity. Enhancing transparency and ensuring sufficient time for transaction review are essential steps toward fostering a more resilient leveraged finance market.”
For more information, you can read the infographic here.
