Note 2-22

(22) A syndicate loan is provided by a syndicate of financial institutions under a single lending contract to meet a massive fund demand. It is similar to a bond issue in that a managing financial institution serves as an arranger inviting other financial institutions to participate in a syndicate. It is also similar to ordinary bank-provided loans in that the fund providers are limited to financial institutions. Syndicates of financial institutions are used for short-term facilities like commitment lines as well as long-term loans.