Syndicated loans are debts issued by a consortium of lenders to a sole borrower. The amount of one syndicated loan is so big such that one lender cannot fund or take on the debt alone. Corporations are usually the borrowers for this type of loan. They use the funds to help them bankroll takeovers, acquisitions or expansion projects.
The lenders are usually composed of big banks, but financial institutions like mutual funds and insurance companies also participate in this type of lending. MEB could be a lender or arranger for each consortium. Apart from funding a substantial portion of the loan, the lead agent will also be responsible for facilitating the loan and allocating cash flows to the other members of the consortium.