Structuring Commercial Finance Term Sheets, Proposals, and Commitment Letters: Key Terms for Lenders and Borrowers
Avoiding Unintended Consequences, Limiting Drafting Ambiguity
Recording of a 90-minute premium CLE video webinar with Q&A
This CLE course will provide commercial finance counsel with guidance on using and analyzing term sheets, proposals, and commitment letters in commercial finance transactions. The panel will explain the potential risks associated with their usage and provide best practices for minimizing those risks through careful drafting, keeping in mind market realities.
Outline
- Impact of current market conditions on loan documentation
- Negotiating key terms
- Conditions
- Loan amount
- Interest rates and fees
- Required and voluntary prepayments, call protection
- Affirmative and negative covenants
- Financial covenants
- Default provisions
Benefits
The panel will review these and other priority issues:
- How do these documents differ, when should each be used, and what types of risks are created by their use?
- What are the critical provisions in commitment letters?
- How can the borrower and lender each minimize risk through these provisions?
Faculty
Jesse T. Kirsch
Partner
Paul Hastings
As a member of the Financing and Restructuring Group, Mr. Kirsch’s practice focuses on the representation of... | Read More
As a member of the Financing and Restructuring Group, Mr. Kirsch’s practice focuses on the representation of leading commercial and investment banks and alternative lenders in large cap and middle market leveraged finance transactions. His broad-based domestic and international finance experience includes widely syndicated and bilateral credit facilities, acquisition financings, and asset-based facilities. Mr. Kirsch advises clients throughout the deal cycle, from commitment letters to execution, and from refinancings to restructurings. He also has significant experience with secured and unsecured registered offerings and private placements of debt, equity, and convertible securities, representing both underwriters and issuers. Mr. Kirsch practices across a variety of industries, including software and technology, energy, gaming, healthcare, and life sciences, with extensive experience negotiating credit and security documentation.
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Arleen A. Nand
Shareholder
Greenberg Traurig
Ms. Nand represents commercial, cooperative, development and investment banks, as well as hedge funds, sponsors,... | Read More
Ms. Nand represents commercial, cooperative, development and investment banks, as well as hedge funds, sponsors, sovereign wealth funds and Fortune 500 companies in leveraged finance transactions. She has structured, drafted and negotiated over $40 billion of syndicated loan, commercial paper and project financings. Ms. Nand has served as lead counsel on numerous transactions, including cross-border credit facilities, securitizations, syndicated loan transactions, credit-linked notes, convertible debt facilities, private placements, joint venture financings and debtor-in-possession credit facilities. Ms. Nand is a fellow of the American College of Commercial Finance Lawyers.
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