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Facilitator Guide

Commitment Letters and Other Preliminary Documents

What’s covered

  • NDAs
  • Terms sheets
  • Commitment letters
  • SunGard provisions
  • Fee letters

Before the session

Prepare the Attendees

Send the attendees an invitation for the session. Include this link, which has the videos and exercise they’ll need to prepare.

https://www.hotshotlegal.com/discussions/commitment-letters-and-other-preliminary-documents/attendee

Prepare Yourself

Watch the videos and read the exercise so you’re familiar with the Hotshot material.

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    Course

    Commitment Letters and Other Preliminary Documents

    An introduction to the preliminary documents used in a loan transaction, including reasons why they’re used and their typical format and content. Documents covered include term sheets, commitment letters, and fee letters.

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    Exercise

    PDF

During the session

Part 1: Knowledge Check
 
Ask attendees these questions to ensure they understand the topic:

  • Why are NDAs particularly important in the lending context?
  • What major economic terms of a deal are almost always decided at the term sheet stage?
  • Which terms are typically not negotiated in any detail until the main documentation stage?
  • What’re the main differences between soft commitments and hard commitments?
  • What kinds of deals more commonly use hard commitments? Why?
  • Why do the parties sometimes include a SunGard provision in the commitment letter?
  • What’s the main reason that lenders use a fee letter?
  • What are some of the common fees charged in a commercial lending deal?
Part 2: Group Exercise

Lead a group discussion based on the exercise. To encourage collaboration, divide the attendees into groups to discuss the exercise, then have a representative from each group summarize their views to the larger group. Call on people to share their thoughts and ask others to respond.
 
Tip for remote sessions: use your web conferencing system’s breakout room feature to divide people into groups.
 
Part 3: War Stories and Firm Specifics
 
Share your own experiences and guidance, including:

  • Anecdotes and war stories (e.g., about a near-disaster or a tough negotiation)
  • General practice tips (dos and don’ts)
  • Firm-specific guidance and practices

After the session

To continue their learning, attendees can check out related courses in Hotshot’s Commercial Lending topic.