2/21/2024 0 Comments The loan arranger reviews![]() Determine which is right for your business from a timing and cost perspective. The transaction can be structured as an underwritten transaction or a best-efforts transaction. Be open and transparent with the lead arranger throughout the process so the arranger can provide you with good execution. Because your lead arranger will negotiate credit terms and structure and sell the deal, the arranger will need a strong track record, experience and credibility. Once all the paperwork has been signed and completed, the loan is ready to close, making it a six-to-eight-week process in total (although timing can vary based on circumstances). After that, there’s a short review process to ensure correct documentation. The participants provide their commitments about two weeks after the bank meeting. ![]() The participants start their credit approval process.The lead arranger negotiates the credit agreement.Two critical next steps follow this meeting: During the bank meeting, the borrower will often share the company’s financial outlook with other potential lenders. The key documents may include, among others, one or more of the term sheet, financial model, lender presentation-also known as the “LP”-and the confidential information memorandum or “CIM.” The CIM often provides details on the company and its industry, current and projected financial conditions, general terms of the financing, and the syndication timeline. The borrower and the lead arranger prepare the marketing materials that will help investors arrive at a credit decision.The lead arranger negotiates the term sheet outlining the structure of the deal, including fees and expenses.The lead arranger conducts underwriting and due diligence in a review for potential financial, reputational and legal risks.This kicks off three concurrent work streams: For a typical corporate deal, the lead arranger usually structures the loan and determines the syndication strategy.These key milestones and deliverables can help you know what’s coming and what’s expected:
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