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For lenders to CD&R portfolio company Shearer's Foods, the on-call finance lifestyle has taken on a whole new meaning.

That’s because a so-called snooze/lose clause was included in Shearer's credit agreement, according to 9fin sources. It’s one of a few deals with the language that cleared the market this year, alongside Vista Equity Partners’ portfolio companies Avalara and Duck Creek Technologies, sources said.

Different formulations exist, but the clause generally enables the borrower to act — either by considering the lender to be consenting or by ignoring them when calculating the final tally — on the voting shares of lenders that do not respond to amendments, consents, or waivers within a certain time frame, often 10 business days.

The result is a borrower-friendly curtailment of voting rights to make it easier to receive lender approval on debt actions. Although this concept has long existed in the European market (see 9fin’s educational article), sources described how different voting mechanics in the US mean it carries significantly more weight.

The language has not received broad market acceptance and has in many cases faced significant pushback from lenders, sources said. But its acceptance in a handful of deals is another indication how borrowers have taken advantage of the past year’s supply-starved M&A market.

CD&R declined to comment. Vista, Shearer’s, Avalara, and Duck Creek did not respond to requests for comment.