Sponsor/Lender Negotiating Issues in Acquisition Finance

Resource type: Practice Note

Status: Maintained

Jurisdiction: USA

This Note discusses the negotiating issues of financial sponsors and lenders in commitment letters, term sheets and fee letters used in private equity acquisition financings, the terms typically negotiated in these letters and the continuing impact of the financial crisis.

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Resource ID: 7-381-0292
Products: PLC US Corporate & Securities, PLC US Finance, PLC US Law Department
This resource is maintained, meaning that we monitor developments on a regular basis and update it as soon as possible.

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Related content

Topics

Acquisition FinanceAcquisition Finance (http://uslf.practicallaw.com/1-380-7400)
Lending: GeneralLending: General (http://uslf.practicallaw.com/0-380-7405)
Private EquityPrivate Equity (http://uslf.practicallaw.com/6-380-7412)

Practice Note: Overview

Acquisition Finance: Overview Acquisition Finance: Overview (http://uslf.practicallaw.com/topic1-382-8186)
Buyouts: Overview Buyouts: Overview (http://uslf.practicallaw.com/topic4-381-1368)
Commitment Letters Overview: Lending Commitment Letters Overview: Lending (http://uslf.practicallaw.com/topic1-381-0450)
Fee Letters Overview: Lending Fee Letters Overview: Lending (http://uslf.practicallaw.com/topic5-381-0293)
Term Sheets Overview: Lending Term Sheets Overview: Lending (http://uslf.practicallaw.com/topic4-381-0298)

Practice Notes

What's Market: 2012 Year-end Trends in Large Cap and Middle Market Loan Terms What's Market: 2012 Year-end Trends in Large Cap and Middle Market Loan Terms (http://uslf.practicallaw.com/topic2-523-7082)
What's Market: Amend & Extends What's Market: Amend & Extends (http://uslf.practicallaw.com/topic9-385-9683)
What's Market: Commitment Letters What's Market: Commitment Letters (http://uslf.practicallaw.com/topic5-500-4967)
What's Market: Covenant-lite Loans What's Market: Covenant-lite Loans (http://uslf.practicallaw.com/topic8-506-5054)
What's Market: Defaulting Lenders What's Market: Defaulting Lenders (http://uslf.practicallaw.com/topic4-500-3888)
What's Market: Eurodollar Rate/LIBOR Interest Rate Provisions What's Market: Eurodollar Rate/LIBOR Interest Rate Provisions (http://uslf.practicallaw.com/topic8-385-8146)
What's Market: FATCA Provisions in Loan Agreements What's Market: FATCA Provisions in Loan Agreements (http://uslf.practicallaw.com/topic7-502-0730)
What's Market: Increased Costs from the Dodd-Frank Act and Basel III What's Market: Increased Costs from the Dodd-Frank Act and Basel III (http://uslf.practicallaw.com/topic3-504-6666)
What's Market: Loan Buybacks What's Market: Loan Buybacks (http://uslf.practicallaw.com/topic1-385-9682)
What's Market: Loan Prepayment Provisions What's Market: Loan Prepayment Provisions (http://uslf.practicallaw.com/topic0-501-5459)

Standard Document

Term Sheet: Syndicated Loan, Senior Secured Credit Facilities Term Sheet: Syndicated Loan, Senior Secured Credit Facilities (http://uslf.practicallaw.com/topic4-502-4763)

Standard Clauses

Commitment Letter: "SunGard" Clause Commitment Letter: "SunGard" Clause (http://uslf.practicallaw.com/topic9-381-9833)
Commitment Letter: Company Material Adverse Change Clause Commitment Letter: Company Material Adverse Change Clause (http://uslf.practicallaw.com/topic5-381-7751)
Loan Agreement: Equity Cure Clause Loan Agreement: Equity Cure Clause (http://uslf.practicallaw.com/topic6-383-3166)

Checklist

Drafting and Negotiating Equity Commitment Letters Checklist Drafting and Negotiating Equity Commitment Letters Checklist (http://uslf.practicallaw.com/topic4-504-7825)

Articles

Commitment Letters: Lessons From Recent US Litigation Commitment Letters: Lessons From Recent US Litigation (http://uslf.practicallaw.com/topic1-386-2076)
Creditors Beware: Lessons from Recent Court Decisions Creditors Beware: Lessons from Recent Court Decisions (http://uslf.practicallaw.com/topic2-503-1397)
Expert Q&A on the Resurgence of Leveraged Loan Activity Expert Q&A on the Resurgence of Leveraged Loan Activity (http://uslf.practicallaw.com/topic3-503-9878)
Middle Market Lending: Traits and Trends Middle Market Lending: Traits and Trends (http://uslf.practicallaw.com/topic5-503-7265)
Trends in "SunGard" Clauses Trends in "SunGard" Clauses (http://uslf.practicallaw.com/topic4-522-7044)