Document background
The Syndicated Loan Term Sheet is a crucial preliminary document used in corporate and structured finance transactions where multiple lenders collectively provide financing to a borrower. This document, governed by German law, serves as a roadmap for the transaction and outlines the fundamental terms and conditions of the proposed facility. It is typically prepared after initial commercial discussions but before detailed loan documentation, enabling parties to align on key terms and obtain internal approvals. The term sheet includes essential information such as facility type, amount, pricing, security structure, and key undertakings, all tailored to comply with German banking regulations and market practice. It forms the basis for the lenders' credit approval process and the subsequent preparation of detailed facility documentation by legal counsel.
