Term sheet and mandate phase in loan transactions

Loan transactions typically start with the term sheet and mandate phase. This guidance note outlines what occurs during this phase, including the parties to a potential transaction entering into confidentiality arrangements, agreeing the key terms of the transaction and establishing their roles in the deal. The length of this phase will vary considerably, depending on the complexity and nature of the deal.

See Term sheet and mandate phase in loan transactions.

Conditions precedent phase in loan transactions

This guidance note describes what is involved in the conditions precedent phase in loan transactions. This phase often overlaps with the finance documents phase in loan transactions. Once the lawyers have started to draft the finance documents, the list of conditions precedent which the borrower will need to provide to the lender (or the facility agent in a syndicated transaction) before it can draw down the loan will start to take shape.

This phase is usually the second longest phase in the transaction. The length of this phase will depend on the number of conditions precedent in the transaction and the efficiency with which the borrower provides the relevant documents.

See Conditions precedent phase in loan transactions.

Finance documents phase in loan transactions

Once the structure of the deal has been agreed and the term sheet agreed and signed, the parties will proceed to the key documentation phase of the transaction. This guidance note describes what is involved in this phase. For transactions with very tight deadlines, work may start on the key finance documents before a term sheet is signed. This phase will most likely be the longest phase in the transaction and could range from just a few weeks for a simple transaction to many months for complex transactions.

See Finance documents phase in loan transactions.

Signing and completion in loan transactions

Signing and completion are important milestones in a loan transaction. There are two possibilities as to their timing:

• • signing and completion take place on the same day — in such cases, all the conditions precedent to funding will need to be satisfied (or have been waived) before signing and completion can take place; or
• • there is a gap between signing and completion — this allows the parties to commit to the deal on signing but leave themselves time between signing and completion to satisfy any outstanding conditions precedent to funding.

This guidance note addresses what must occur during the signing and completion phase.

See Signing and completion in loan transactions.

Preparing for completion in a loan transaction

Once the finance documents have been signed and the conditions precedent have been satisfied (or waived in writing), there are a few final tasks that need to be undertaken before completion can take place. This guidance note outlines those pre-completion tasks, including making the necessary searches and registrations and dealing with arrangements for the transfer of funds.

See Preparing for completion in a loan transaction.

Post-completion phase in loan transactions

This guidance note explains what may occur after completion of a loan transaction. It looks at addressing any conditions subsequent and other administrative tasks such as collation of original documents and preparation of a transaction bible for the parties’ records. This phase should be a short phase which is completed as soon as possible but can often take longer than expected.

See Post-completion phase in loan transactions.