Establishing a definition which captures all types of potential refinancing can be difficult and the Contracting Authority should aim for a definition which minimizes the potential for circumvention through sophisticated structurings. The recommended approach is to be as generic as possible by reference to the senior finance documents, with a catch-all provision. See Section 5.3, Sample Drafting 5, Required Definitions, definition of "Refinancing".
A definition of "Exempt Refinancing" is sometimes requested by the Private Partner to clarify that certain dealings are not intended to be caught by the relevant refinancing provisions. Again, the Contracting Authority should carefully consider what might be included on a case by case basis. For example, in the case of a mini perm financing and a bridge to bond financing, Contracting Authorities should recognize that refinancing is virtually a given so the PPP Contract should envisage this occurrence.