Staple Financing (M&A Glossary)

Summary

This is a pre-arranged financing package offered to potential bidders in an acquisition. Staple financing is arranged by the investment bank advising the target and includes all details of the lending package, including the principal, fees and loan covenants. The name is derived from the fact that the financing details are stapled to the back of the acquisition term sheet. This makes it easier for potential buyers to see what their financing options are.