The follies which a man regrets the most in his life are those which he didn’t commit when he had the opportunity.

Applied Machine Learning: The Syndicated Revolver Part 1

An examples of a project funded by Syndicated Loans is the construction of the Panama Canal in the early 20th Century. Multiple banks lent money for the building of the Canal, with hopes of recouping their investment and more by offering financial services to the Canal.

Every year, Uber pays banks on Wall Street(and more recently, Silicon Valley) millions of dollars for all kinds of work.

These banks provide a wide range of services for Uber from Mergers & Acquisitions advice to underwriting fees. When Uber is preparing for a capital intensive project, they reach out to banks to help them(at a hefty fee) dot their i’s and cross their t’s.

Banks know that every year Uber has a war chest set aside for these inevitable advisory services, and this prize is called the fee wallet. Every bank wants to get as big a piece of the pie as possible, and Uber knows this, so they leverage that fact to secure favorable loans. If a bank wants a chance to fight for a portion of Uber’s juicy fee wallet, they must promise Uber below-market funding in the form of a Syndicated Revolver. Only after these banks have committed cheap debt to Uber do they have the chance to compete for Uber’s fee wallet.

All your fees are belong to us.