Non Pro Rata Lending

Non-pro-rata lending is a loan structure in which lenders in the same facility fund, receive payments or share fees in proportions that differ from their funded portion of the loan. Non-pro-rata allocations make servicing materially more complex, since each additional funding or payment must be allocated lender by lender. Additionally, the register of lenders for the funded and unfunded portion needs to be maintained independently to accurately track accruals for both fees and interest income, among other loan attributes. Frequently, private credit lenders may combine unitranche structures with non-pro-rata lending, leading to dense lender registers. LoanStreet CLS provides smart workflows for handling non-pro-rata allocations as part of its multi-lender loan servicing for syndicated and private credit loans.

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