You snooze, you lose


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You snooze, you lose

Jainisha Amin's avatar
  1. Jainisha Amin
7 min read

The snooze/lose provision in a European leveraged loan agreement (”SFA”) is intended to encourage lenders to respond to consent requests in a timely manner or risk being disenfranchised.

The typical snooze/lose provision in an SFA provides that the commitment of any lender who fails to respond to a consent request within a set period (usually 10 business days) will be disregarded when determining whether the relevant majority, super majority or all lender threshold has been reached. The snooze/lose provision can be found under the ‘Amendments and Waivers’ section in an SFA; it is a fairly formulaic clause and usually not subject to much negotiation, except in respect of the length of the snooze/lose time period.

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