An overview to term sheets and bank facilities letters for financial accountants - Workshop 2019

Session 1

The financial managers responsible for negotiating term loans from commercial banks often feel they confronted by a large piece of terms and conditions restricting them for smooth repayment. If terms are mis-interpreted and accepted, the company could find it difficult to re-negotiate and would be forced to concede aspects of the deal.

This workshop aims to provide you with an overview of term sheets and bank facilities letters for loans.

Key topics covered:

• The structure of facility letter
• The term sheets and explain the main difference against facilities letters
• Committed facilities and un-committed facilities
• Bilateral and syndicated business loans/facilities

Session 2

From the angle of banking, the term sheet is known as “letter of intent”, while the facilities letter is identical as a loan agreement. In terms of their structure and drafting there is no “one size fits all” approach, but they will generally set out the key commercial and legal terms in respect of a proposed transaction or final agreements. Since such documents are important documents for both borrowers and lenders for a number of different reasons, the businessmen and accountants should always have a clear understanding before signing them.

This workshop aims to provide you with an overview of term sheets and bank facilities letters for loans.

Key topics covered:

• The amount, pricing, facilities limit, securities, guarantee and prepayment and payment in the context of term sheets & facilities letter
• The importance of covenants in facility letter
• The definition/meaning of event of default and waiver, with typical examples
• The consequence of breach of loan agreement

Trainer profile:

S Lai has over 25 years of banking experience in all areas of credit and marketing functions. He has been involved and dealt with various types of customers of MME, SMEs, securities house in Hong Kong/Macau/Guangdong Province.

Session 1

• Understand the term sheets in the context of lending transactions
• Recognise what the items are included in the term sheets and facilities letters
• Identify the difference between committed facilities and un-committed facilities
• Discuss the bilateral (secured, partially secured or clean) facility agreement between a single lender and a borrower

Session 2

• Recognise the context of amount, pricing, facilities limit, securities, guarantee and prepayment/repayment
• Understand the meaning of financial, negative, affirmative and information covenants in the context of lending transactions
• Identify the circumstance of event of default and consequence of breach of loan agreement

This workshop is suitable for CFO, Financial Controller and accounting professionals who are interested in this topic and is also suitable for the financial managers who are involved in the groundwork of loan applications and final phase of the banking facilities agreements.