Versana today announced that J.P. Morgan has become the first administrative agent (“Agent”) of broadly syndicated loans (“BSL”) to implement Versana’s cashless roll capability on its centralized, real-time digital platform. This first-of-its-kind feature links an original loan facility’s transaction history (e.g. cash flows and settled trades) to subsequently amended facilities’ information to improve portfolio management and operational efficiencies for lenders. The launch of this innovative functionality further validates Versana’s value proposition and mission to modernize the $8 trillion BSL and private loan markets.
For almost two decades, the BSL asset class has needed an information and technology solution to resolve the fragmented complexity of managing its high volume of loan refinancings and repricings implemented via cashless roll mechanics. Versana has now launched an industry-wide solution, with J.P. Morgan leading the market by being the first Agent to adopt this advanced feature.
Joseph Ferraiolo, Head of Debt Capital Markets Operations & Merchant Bank Policy at J.P. Morgan, said: “With over 50% of market volume year-to-date occurring in repricings, this cashless roll functionality is a significant benefit to all loan market participants, enabling them to seamlessly track an initial loan position through to its new refinanced facility. J.P. Morgan is proud to be the first agent to implement Versana’s cashless roll capability, allowing our lender clients to now string together their full position history.”
Versana’s cashless roll solution enables:
- Seamless Transaction History from Loan Origination: Linkage of an original loan facility’s cash flows and settled trades to subsequently amended facilities’ information, thereby providing a full historical record of loan activity through the entire loan lifecycle
- Golden-Source Agent Information: Access cash flow, transaction and lender level information from Agents’ golden-source loan servicing systems rather than legacy piecemeal methods
- Real-Time Updates: Cashlessly rolled amended facilities are available and linked to the original facility at close of the amendment
“This first-ever solution for cashless rolls solves a long-standing pain point in the BSL market,” said Cynthia E. Sachs, Founding CEO of Versana. “With this release, J.P. Morgan continues to demonstrate its leadership by being the first adopter of our cutting-edge functionality. We’re excited to now expand this across all Agents for the benefit of all participants.”
Versana’s cashless roll solution builds upon the company’s continued growth, which now offers facility information on over $5 trillion in notional loan commitments on its next-generation platform.
