Commitment letters and mandate letters

A commitment letter (noting that in Australia mandate letters are usually termed ”commitment letters” where there is no separate syndication process) is normally drafted alongside the term sheet (and when finalised has the term sheet attached). It, or a mandate letter (where there is still a separate syndication to be run), appoints the mandated lead arrangers or the “MLAs”.

Commitment letters are viewed as an indicator of a buyer’s ability to obtain funding and complete the acquisition. This guidance note outlines the key terms of a mandate letter for acquisition finance.

See Commitment letters and mandate letters.