Term Sheet

By December 31, 2021No Comments

May be seen as a memorandum of understanding, setting out the terms and conditions of a financing which will in due course be incorporated into a full loan agreement. Term sheets may be “uncommitted” or “committed”. The former will normally be subject to:

  • lender credit committee approval;
  • formal loan documentation (i.e. contract);
  • satisfactory completion of due diligence investigations.

Committed term sheets will have met the requirements of the first bullet point above but still be subject to the other two.