Document background
The Term Facility Agreement is a fundamental financing document used when a borrower requires fixed-term funding for specific purposes such as acquisitions, expansion, or refinancing existing debt. This agreement, governed by New Zealand law, establishes a detailed framework for the lending relationship, including facility limits, drawdown mechanics, interest calculations, repayment terms, and security arrangements. The document ensures compliance with New Zealand regulatory requirements while protecting both lender and borrower interests through carefully structured covenants, representations, and undertakings. The Term Facility Agreement is particularly suited for commercial lending transactions where certainty of funding and terms is required over a defined period.
