A condition precedent to lending in bank loan commitment letters that requires that there be no adverse change or disruption in the financial, banking or capital markets that could impair the syndication of the credit facilities (which would include the high-yield bonds issued in a bank/bond deal).

Market MAC clauses are not usually included in commitment letters, especially with creditworthy financial sponsors. During the financial crisis, lenders sought to re-introduce the market MAC clause but inclusion of the clause was rare. Instead, lenders require increased flex rights to mitigate the effects of disruptions in the loan syndications market.

For more information on market MAC clauses, see Practice Note, Sponsor/Lender Negotiating Issues in Acquisition Finance.

For more information on flex language, see Practice Note, Fee Letters Overview: Lending.