Finance

Term Sheet 1. Term loan facility to finance a portion of the acquisition price and to refinance some or all of the existing indebtedness of the Target 2. Revolving credit facility to finance working capital following the acquisition and, if required, the fees and expenses of completing the acquisition ECONOMICS PURPOSE SCOPE Commitment Papers — the Basics 56

• An Introduction to Leveraged Finance
• Agenda
• Opening Remarks
• Slide Number 4
• Introduction
• Debt stack
• Restricted vs. Unrestricted Subsidiaries
• Restricted vs. Unrestricted Subsidiaries (cont.)
• Typically, who is Restricted?
• Subordination
• Structural Subordination
• Lien/Effective Subordination
• Contractual Subordination
• Typical subordination scenario
• Covenants: Incurrence v. Maintenance
• Purpose of Covenants
• Debt Covenant – Basics
• Debt Covenant – How Does It Work?
• Debt Covenant – How Does It Work? (cont.)
• Debt Covenant – How Does It Work Under Various Instruments?
• Limitation on Restricted Payments – Purpose
• Limitation on Restricted Payments – Carve-outs
• Restricted Payments Covenant – How Does It Work under Various Instruments?
• Understanding HY covenants within Loan Documents
• Financial Statements – The Basic Requirements 
• What Financial Statements Are Required in an OM?
• What Financial Statements Are Required in an OM? (cont.)
• What Financial Statements Are Required in an OM? (cont.) (1)
• Financial Statement Requirements for Acquisitions
• Financial Statement Requirements for Acquisitions (cont.)
• Financial Statement Requirements for Acquisitions (cont.) (1)
• Financial Statement Requirements for Acquisitions (cont.) (2)
• Financial Statement Requirements for Acquisitions (cont.) (3)
• Financial Statement Requirements for Acquisitions (cont.) (4)
• Financial Statement Requirements for Acquisitions (cont.) (5)
• Financial Statement Requirements for Acquisitions (cont.) (6)
• Financial Statement Requirements for Acquisitions (cont.) (7)
• Financial Statement Requirements for Acquisitions (cont.) (8)
• Financial Statement Requirements for Acquisitions (cont.) (9)
• Non-GAAP Financial Metrics
• Non-GAAP Financial Metrics (cont.)
• Non-GAAP Financial Metrics (cont.) (1)
• Non-GAAP Financial Metrics (cont.) (2)
• Recent/Upcoming Developments
• New Environmental/Climate-Change Disclosures Expected in 2023
• Commitment Papers — The Basics
• Timeline of an Acquisition Financing
• Types of Mandate
• Process
• Commitment Papers – The Documents
• Commitment Letter – Conditions to Commitment
• SPA – Key Points
• TSM/Model
• Additional Commitment Letter Considerations
• Termination of Commitment
• Term Sheet
• European Certain Funds
• Syndication Strategy
• Fee Letters
• Other Provisions in Fee Letters
• Our Team
• Our Team (1)
• Slide Number 63