Finance documents phase in loan transactions
Finance documents phase in loan transactions

The following Banking & Finance practice note provides comprehensive and up to date legal information covering:

  • Finance documents phase in loan transactions
  • Timing
  • What happens during this phase?
  • Key tasks for lawyers within this phase
  • Who does what?
  • Finance documents (other than the hedging documentation)
  • Hedging documentation


Once the structure of the deal has been agreed and the term sheet agreed and signed (for more information, see Practice Note: Drafting and negotiating term sheets in loan transactions), the parties will proceed to the key documentation phase of the transaction. For transactions with very tight deadlines, work may start on the key finance documents before a term sheet is signed. This phase will most likely be the longest phase in the transaction and could range from just a few weeks for a simple transaction to many months for complex transactions.

What happens during this phase?

This is the phase where the finance documents are drafted and negotiated. All loan transactions will include a loan agreement (often called a 'facility agreement', 'facilities agreement' or 'credit agreement'). Depending on the structure of the transaction, the finance documents could also include:

  1. guarantees—for example, where the borrower's parent company is required to give a guarantee of the borrower's obligations to the lender or where other companies in the borrower's group are required to guarantee the obligations of the borrower

  2. security documents—f

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