Commitment Papers Resource Kit


Summary

This resource kit provides an overview of financing commitment papers. The commitment letter and its attachments are the starting point of the definitive documentation and the drive to closing, but they are also the end result of significant negotiation over the business and legal terms of a transaction. To start, lawyers are generally tasked with translating the business terms of the transaction into a legal term sheet attached to the commitment letter. However, in addition to drafting the commitment papers, lawyers take the lead in negotiating these terms—that is, every major provision other than the pricing itself. This means counsel must be up to date on market conditions and the structure and nature of the transaction itself.