Earlier this month, the LSTA published a market advisory outlining some recent changes to the disqualified institutions provisions (the “LSTA DQ Structure”) set forth in the LSTA’s Model Credit Agreement Provisions (the “MCAPs”). As in previous iterations, the updated MCAPs contemplate that a borrower should have the discretion to create and periodically update a list of entities that are disqualified from becoming lenders or participants under the credit agreement (a “DQ List”). Under the updated MCAPs, entities included in the DQ List (“Disqualified Institutions”) consist of 1) any entities the borrower identifies to the arranger at or prior to the closing of the commitment letter and 2), any other entities the borrower identifies to the administrative agent from time to time that are competitors of the borrower or its subsidiaries, and 3) any affiliates of Disqualified Institutions under 1) or 2) that the borrower identifies to the administrative agent. Read our key takeaways here.