The following Banking & Finance guidance note provides comprehensive and up to date legal information covering:
This Practice Note provides introductory information on term sheets in lending transactions. It discusses:
what a term sheet is
the circumstances in which term sheets are used in lending transactions
when term sheets will be legally binding
key issues in negotiating term sheets for both borrowers and lenders, and
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.
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
**excludes LexisPSL Practice Compliance, Practice Management and Risk and Compliance. To discuss trialling these LexisPSL services please email customer service via our online form. Free trials are only available to individuals based in the UK. We may terminate this trial at any time or decide not to give a trial, for any reason. Trial includes one question to LexisAsk during the length of the trial.
To view the latest version of this document and thousands of others like it, sign-in to LexisPSL or register for a free trial.
Existing user? Sign-in
Take a free trial
Take a free trial
0330 161 1234