Drafting Term Sheets and Financing Agreements

Drafting Term Sheets and Financing Agreements

Ward Buringrud Partner, Finance and Commercial Law Transactions

The business plan

What the lender wants

What the borrower wants

Term sheet basics and problem areas Structuring loan documentation Negotiating credit agreements Representations and warranties Affirmative and negative covenants Events of default Security document essentials Oddball collateral Closing conditions and 3rd party consents

Agenda

Term sheet basics

Parties' names

Description of credit facilities

Interest rate and fees Payment terms and maturity date

Term sheet basics

Description of the collateral security

Affirmative and negative covenants

Term sheet problem areas

Description of guarantors as "all subsidiaries"

Descriptions of collateral as "all property"

Closing conditions that require 3rd party consent

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