Mezzanine Debt Term Sheet Template for Qatar

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Key Requirements PROMPT example:

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."

Document background
The Mezzanine Debt Term Sheet is a crucial preliminary document used in Qatar to establish the framework for mezzanine financing transactions, which sit between senior debt and equity in the capital structure. This document is typically used when companies require additional financing beyond traditional senior debt but are not willing or able to raise pure equity. The term sheet outlines essential commercial terms including pricing, security, subordination, and potential equity-linked features, all structured to comply with Qatar's legal and regulatory framework. It serves as the basis for the final transaction documents and must account for Qatar's civil law system, Qatar Central Bank regulations, and where applicable, Shariah compliance requirements. The document is particularly relevant for growth capital, acquisition financing, and real estate development projects in Qatar.
Suggested Sections

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

Optional Sections

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

Suggested Schedules

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

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions
Clauses
Relevant Industries

Real Estate Development

Infrastructure

Energy and Resources

Healthcare

Hospitality

Manufacturing

Retail

Technology

Construction

Education

Financial Services

Relevant Teams

Legal

Finance

Treasury

Corporate Development

Risk Management

Compliance

Investment Banking

Private Equity

Capital Markets

Corporate Finance

Relevant Roles

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

Industries
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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