Transcription of Drafting Term Sheets and Financing Agreements
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Drafting Term Sheets and Financing Agreements Ward Buringrud Partner, Finance and Commercial Law Transactions The business plan What the lender wants What the borrower wants Agenda Term sheet basics and problem areas Structuring loan documentation Negotiating credit Agreements Representations and warranties Affirmative and negative covenants Events of default Security document essentials Oddball collateral Closing conditions and 3rd party consents Term sheet basics Description of credit facilities Interest rate and fees Parties names Payment terms and maturity date Term sheet basics Description of the collateral security Affirmative and negative covenants Term sheet problem areas Description of guarantors as all subsidiaries Descriptions of collateral as all property Closing conditions that require 3rd party consent Describe parties specifically The Credit Facility shall be guaranteed by all existing and future direct and indirect material
agreements, documents, instruments, indemnification rights, tax refunds and ... Additional Guarantors. Pursuant to Section 6.12 of the Credit Agreement, each Material Subsidiary that was not in existence or was not a Guarantor on the date of the Credit Agreement is required to
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