Term Sheet For Loan Agreement By Lending Syndicate Financing A Private Company Acquisition (SONIA or BOEBR)

This legal template is a term sheet specifically designed for a loan agreement between a lending syndicate and a private company in the context of financing the acquisition of another private company. The financing commitment will be governed by UK law, and the template offers flexibility for the parties to choose between the use of the SONIA (Sterling Overnight Index Average) or BOEBR (Bank of England Base Rate) as the reference interest rate.

The term sheet provides an outline of the key terms and conditions that will form the basis of the loan agreement. It serves as a preliminary document that helps the parties negotiate and agree upon the fundamental terms before proceeding with the full loan agreement documentation.

The template may cover several essential aspects of the loan agreement, including but not limited to:

1. Loan Amount: Specifies the total amount of funding to be provided by the lending syndicate to finance the acquisition.

2. Interest Rate: Outlines the agreed-upon interest rate, which can be either SONIA or BOEBR, and any additional margin to be added to the reference rate.

3. Drawdown: Sets forth the details of how and when the loan funds will be made available to the borrower, including any conditions precedent for each drawdown.

4. Repayment: Defines the repayment terms, including the principal amount, interest payment intervals, and any provisions for early repayment or prepayment penalties.

5. Security and Collateral: Clarifies the specific assets or guarantees that will secure the loan, providing protection for the lending syndicate in case of default.

6. Representations and Warranties: Outlines the assurances provided by the borrower regarding the accuracy of information and their ability to undertake the acquisition and repay the loan.

7. Covenants: Specifies the ongoing obligations and restrictions imposed on the borrower during the term of the loan, such as financial reporting requirements or limitations on additional borrowing.

8. Default and Remedies: Describes the events that would constitute a default by the borrower, along with the remedies available to the lending syndicate in case of default, including potential acceleration of the loan.

It is important to note that this is merely a description of what the legal template could cover, and the actual content and specificity may vary depending on the precise requirements and negotiation between the parties involved.