Structuring Commercial Finance Term Sheets, Proposals, and Commitment Letters: Key Terms for Lenders and Borrowers

This CLE course will provide commercial finance counsel with guidance on using and negotiating 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.

Commercial loan term sheets and proposal and commitment letters are an essential tool in ensuring that the parties understand and agree to the terms of a proposed financing transaction. They can set the stage for required diligence and related documentation to get to closing and provide comfort for lenders in covering expenses and fee payments.

Term sheets and commitment letters provide borrowers with a commitment of financing when a planned acquisition or investment is dependent on the availability of financing. Still, they can introduce significant risk to borrowers and lenders if not drafted carefully, including the failure to receive funding for the borrower if key concepts are not agreed upon or the likelihood that a lender may be required to fund the transaction under unanticipated circumstances.

Listen as our experienced panel of finance practitioners examines term sheets, proposal and commitment letters, the appropriate situations, terms to use and terms to avoid, and potential risks from both a lender and borrower perspective.