It is signed long before the existing loan facility's final maturity date, between several months to over a year before that date.

Its lenders include some of the existing loan facility lenders (but not all, otherwise the existing loan facility could simply be amended and a forward start facility would not be required).

It is only available on the existing loan facility maturity date and for the purpose of repaying the existing loan facility.

Its terms are typically based on the existing loan facility terms, subject to certain exceptions such as commitment period, pricing, and maturity date.

The borrower's future borrowing arrangements are certain and for a fixed price.

Lenders who participate in the forward start facility and the existing loan facility receive a higher return than they would have received if the existing loan facility had been refinanced on short notice. This is because those lenders receive fees under the forward start facility for the period from its signing date until the start of its commitment period. These fees are in addition to the margin and fees payable under the existing loan facility, which continues unamended until its scheduled maturity date. (Forward start facility lenders who are not also lenders under the existing loan facility do not receive fees under the forward start facility for the period from its signing date until the start of its commitment period.)