Term sheets in lending transactions
Term sheets in lending transactions

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

  • Term sheets in lending transactions
  • What is a term sheet?
  • When are term sheets used?
  • Are term sheets in lending transactions legally binding?
  • What key points should practitioners consider when drafting term sheets and commitment letters?
  • Can only some of the provisions in the term sheet be legally binding?
  • Key issues in negotiating term sheets for borrowers and lenders
  • Borrower perspective
  • Lender perspective
  • Contents of a term sheet
  • More...

This Practice Note provides introductory information on term sheets in lending transactions. It discusses:

  1. what a term sheet is

  2. the circumstances in which term sheets are used in lending transactions

  3. when term sheets will be legally binding

  4. key issues in negotiating term sheets for both borrowers and lenders, and

  5. key provisions of term sheets, including those in the Loan Market Association (LMA) recommended form of term sheet

For a more detailed commentary on the LMA investment grade term sheet, see Practice Note: Loan Market Association investment grade term sheet—commentary.

For a precedent term sheet for a bilateral lending transactions, see Precedent: Term sheet (for a term loan facility): single company borrower—bilateral—with or without security or a guarantee.

For information on term sheets in acquisition finance transactions, see Practice Note: Term sheets in acquisition finance.

For information on the LMA’s recommended form of term sheet for use in real estate finance transactions, see Practice Note: Real estate finance: Loan Market Association real estate finance term sheets for investment transactions and for development transactions—key features.

What is a term sheet?

Term sheets are used in both bilateral and syndicated transactions.

In this Practice Note, where the term lender is used, it refers to all the lenders in a syndicated transaction. There may also be multiple borrowers in some transactions. Where the term borrower is used, it refers to all the borrowers if there

Popular documents