Document background
A Loan Note Agreement is a crucial financing document used when an entity wishes to raise debt funding through the issuance of notes, particularly common in the Australian market for both private and public offerings. This agreement type is typically employed when companies seek alternative funding sources to traditional bank loans, offering more flexibility in terms of structure and potential transferability. The document comprehensively covers the mechanics of the note issuance, subscription process, interest calculations, repayment terms, and various protections for both issuers and investors. Under Australian law, these agreements must comply with the Corporations Act 2001 (Cth) and relevant ASIC regulations, particularly regarding disclosure requirements and, where applicable, security registration under the Personal Property Securities Act 2009 (Cth). The agreement can be structured to accommodate various commercial requirements, from simple fixed-rate notes to more complex convertible or secured instruments.
