4.9.2 Capturing Tranche Details

To capture a new tranche contract, select New from the menu.. In LB Tranche Contract Online screen, enter Syndication Reference and Product code. The following information defaults to the Contract tab of the screen:

• Contract Reference Number and User Reference Number
• Branch Name and Department
• Customer of the contract and the GFCID (Global Financial Customer ID)
• Reference number of the facility contract
• Contract Currency
• Tranche details
• Liquidation details
• Settlement details of the selected customer. This will include the settlement branch, account and currency
• Rounding rule for the currency
• Nature of the commitment whether Revolving or Non-Revolving. In the case of a revolving commitment, the amount available is restored when a drawdown linked to the tranche (commitment) is disbursed and paid out. In the case of a non-revolving commitment, the amount available is not restored.

In the header section of the screen, you have to specify the following:

• User Reference Number

  The reference number is the identification that you specify for the borrower tranche. You can specify any identification number. In addition to the Contract Reference Number that the system generates, this number is also used to retrieve information about the tranche.

  By default, the Contract Reference Number is considered to be the User Reference Number for the tranche.
• Custom Ref No

  You can capture a unique reference number for the tranche contract. This number is used to identify the tranche in the system. You can also query the tranche based on this number. The reference number can consist of a maximum of 16 alphanumeric characters. You have to capture the custom reference number as mandatory information for the tranche.

• Facility Name

  You can provide a name to the tranche being processed. The facility name is available for querying the contract. This name is also displayed for all the drawdowns processed under the tranche. At the drawdown level, you cannot change the facility name.

  The name can consist of a maximum of 35 alphanumeric characters and you are allowed to amend the name anytime during the tranche life cycle. This results in change of the facility name in all the linked drawdown contracts.

  Note:

  It is mandatory to specify a facility name for a tranche.
  When the facility name is changed at the tranche level, it is propagated to all the underlying trades. When such a tranche amendment is authorized, system searches all the underlying trades having the same CUSIP/ ISIN and updates the latest facility name for all the fetched records.

  As part of tranche amendment authorization, system gives an override before propagating the new facility name to all the versions of the open trades. If you select No to the propagation, then, you should manually amend trades with the latest facility name.

  The facility name is updated both at the draft and trade level.