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Mezzanine Debt Term Sheet
"I need a Mezzanine Debt Term Sheet under Qatar law for a QAR 50 million facility to finance a luxury hotel development in Doha, with both conventional and Islamic finance tranches, to be completed by March 2025."
1. Parties: Identification of the lender(s), borrower(s), and any guarantors or other key parties
2. Background: Brief description of the transaction purpose and structure
3. Definitions: Key defined terms used throughout the term sheet
4. Facility Amount: Size of the mezzanine facility and any tranching details
5. Purpose: Specified use of proceeds
6. Economic Terms: Interest rate, fees, payment terms, maturity date, and prepayment provisions
7. Security and Subordination: Description of security package and ranking of the debt
8. Conditions Precedent: Key conditions that must be satisfied before funding
9. Representations and Warranties: Standard representations required from the borrower
10. Covenants: Financial and operational covenants, including information requirements
11. Events of Default: Circumstances that would trigger default and enforcement rights
12. Governing Law: Specification of Qatar law as governing law and related jurisdictional provisions
1. Equity Kicker: Terms of any equity participation rights or warrants, used when the financing includes an equity component
2. Islamic Finance Compliance: Additional provisions for Shariah compliance, required if the facility needs to be Islamic finance compliant
3. Intercreditor Provisions: Required when there are multiple classes of debt requiring formal subordination arrangements
4. Currency Conversion: Included when the facility involves multiple currencies or currency conversion rights
5. Board Rights: Terms of any board representation or observer rights, included when lender requires governance participation
6. Exit Rights: Specific provisions regarding exit mechanisms or IPO rights, included in growth-focused mezzanine facilities
1. Corporate Structure Chart: Diagram showing the corporate structure and security package
2. Capitalization Table: Current and pro forma capitalization of the borrower group
3. Financial Covenants Calculations: Detailed calculation methodologies for financial covenants
4. Security Assets Schedule: Detailed list of assets subject to security interests
5. Permitted Indebtedness: Schedule of existing and permitted debt obligations
Authors
Acquisition
Affiliate
Applicable Margin
Approved Purpose
Business Day
Cash Pay Interest
Change of Control
Commitment
Compliance Certificate
Default
Default Interest
EBITDA
Equity Cure
Equity Documents
Equity Kicker
Event of Default
Exit Event
Facility
Financial Indebtedness
Financial Statements
Group
Guarantors
Holding Company
Interest Payment Date
Interest Period
Intercreditor Agreement
Islamic Finance Documents
Legal Reservation
Leverage Ratio
Material Adverse Effect
Maturity Date
Mezzanine Documents
Mezzanine Facility
Obligors
Payment in Kind (PIK)
Permitted Disposal
Permitted Distribution
Permitted Financial Indebtedness
Permitted Security
Principal Amount
QCB
QFC
Qualifying IPO
Security
Security Documents
Senior Debt
Senior Facilities Agreement
Shariah Principles
Subordinated Debt
Subsidiary
Transaction Documents
Warrants
Purpose
Availability
Repayment Terms
Interest Rate
Fees
Security
Subordination
Conditions Precedent
Representations and Warranties
Financial Covenants
Information Covenants
General Undertakings
Negative Pledge
Events of Default
Equity Participation
Exit Rights
Change of Control
Assignment and Transfer
Mandatory Prepayment
Voluntary Prepayment
Tax Provisions
Increased Costs
Market Disruption
Shariah Compliance
Board Rights
Voting Rights
Anti-Dilution
Currency Provisions
Costs and Expenses
Indemnities
Confidentiality
Governing Law
Dispute Resolution
Notices
Real Estate Development
Infrastructure
Energy and Resources
Healthcare
Hospitality
Manufacturing
Retail
Technology
Construction
Education
Financial Services
Legal
Finance
Treasury
Corporate Development
Risk Management
Compliance
Investment Banking
Private Equity
Capital Markets
Corporate Finance
Chief Financial Officer
Finance Director
Investment Manager
Corporate Lawyer
Legal Counsel
Treasury Manager
Investment Banker
Private Equity Manager
Corporate Development Manager
Risk Manager
Compliance Officer
Financial Controller
Managing Director
Chief Executive Officer
Business Development Director
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