T – Leverest

Tax Due Diligence (“TDD”)

Daniel Högel — Tue, 26 Apr 2022 18:59:14 +0000

Part of the Due Diligence phase where an external auditor analyzes the tax situation, identifies tax risks as well as provides the tax-optimal structure of the acquisition of the target company. Usually, a TDD report is drafted that might be shared with potential lenders after exchanging a release letter.

Tech-enabled Debt Advisory

Daniel Högel — Fri, 25 Mar 2022 13:55:56 +0000

New concept introduced by Leverest which allows investors and companies to use a digital financing platform to receive their envisaged financing structure. An efficient process management software supports throughout the financing transaction and may be upgraded with real corporate finance advice to combine the best of two worlds.

Term Loan A (“TLA”)

Daniel Högel — Fri, 25 Mar 2022 13:57:45 +0000

Senior term loan (e.g. from a bank) that is typically amortized over 5 to 6 years.

Term Loan B (“TLB”)

Daniel Högel — Fri, 25 Mar 2022 13:58:41 +0000

Senior term loan (e.g. from a bank) that is typically amortized in year 6 or 7 with a bullet repayment (i.e. no amortization over the loan lifetime).

Termgrid

Daniel Högel — Fri, 25 Mar 2022 13:56:37 +0000

Document that an investor can use to request an indication of the high-level commercial terms of the interested lenders. Usually the foundation for a termsheet which may be drafted by credit lawyers in a second step. Read more in our detailed blogpost about termgrids.

Termsheet

Daniel Högel — Fri, 25 Mar 2022 13:57:26 +0000

Document that reflects the commercial loan terms and in contrast to the Termgrid adds legal language as an intermediary step before the documentation of the loan agreement can be drafted. Short-form termsheets (3-5 pages) and long-form termsheets (10-30 pages) are most common depending on the underlying situation.

Transferability

Daniel Högel — Tue, 26 Apr 2022 18:44:10 +0000

Arrangement which clarifies the terms and restrictions on which a lender can bring in a new financing party to take on a part or the full existing loan package.