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How do you read a debt financing term sheet? What are the key sections in a bank lending agreement? What does a real life bank term sheet look like? In today's video, we walk through, in GREAT detail :) , a business loan term sheet from a Schedule A lender supporting an M&A acquisition and define the key concepts in each section of the agreement. The key sections & terms covered are at the below timestamps:
[2:50] Borrower and Guarantor Entities Explained/Corporate Ring Fencing
[4:50] Sources and Uses Financing Table
[7:45] Facility Terms (Interest rate, loan term, loan amortization, early loan prepayment & penalties)
[16:54] Loan Security Breakdown (GSA, Corporate Guarantee, intercreditor agreements, postponement & subordination agreements, personal guarantees and assignment of insurance policies)
[30:43] Closing conditions (legal/tax/lender due diligence, personal net worth statements, Quality of earnings, real estate & equipment appraisals)
[39:28] Financial & Non-Financial Covenants
[45:03] Reporting Obligations
[46:16] Lender Fees
[48:20] Borrower Expenses
[49:14] Assignment & Other Clauses
[50:17] Key Definitions
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If you are looking to sell your business and would like to learn more about Roblee Capital, please reach out to me for an introductory call. You can contact me through email or through my LinkedIn at;
/ robert-bezede-20ab8a6a
Roblee Capital is a Toronto-based M&A Investment Bank focused on serving companies with revenues between $1MM to $100MM primarily offering sell and buy-side M&A services. We work with Canadian-based business owners looking to sell their lower mid-market business. If you are a Canadian business owner looking to sell or buy, please reach out so we can connect at the link below:
www.robleecapital.ca/