A security package is the set of collateral and rights a lender takes to protect a loan — for example mortgages or charges over assets, share pledges, assignment of receivables, account control and guarantees. It defines what the lender can enforce on default.
The strength of the security package drives how much can be borrowed, at what price and with what covenants.
Negotiated in private credit, project finance and real estate finance.
A security package is the set of collateral and rights a lender takes to protect a loan — for example mortgages or charges over assets, share pledges, assignment of receivables, account control and guarantees. It defines what the lender can enforce on default.
Negotiated in private credit, project finance and real estate finance.
A security package commonly includes mortgages or charges over assets, pledges over shares in the borrower, assignment of receivables or key contracts, control over bank accounts and guarantees from sponsors or group companies. Together these define what the lender can enforce against if the borrower defaults.
The stronger the security package, the more a lender will typically advance, at lower pricing and with lighter covenants. Weaker or harder-to-enforce collateral pushes terms the other way. Borrowers therefore weigh the cost of granting wider security against the cheaper, larger facilities that stronger collateral can unlock.
Speak to a partner about how this applies to your transaction.
