The Mezzanine Debt Term Sheet is utilized when companies seek financing that combines elements of debt and equity, typically in leveraged financing structures. This document, governed by English and Welsh law, sets out the principal terms and conditions of the proposed mezzanine facility, including pricing, security, and any equity participation rights. The term sheet serves as the foundation for negotiating and documenting the final mezzanine facility agreements, establishing the framework for this hybrid financing instrument that sits between senior debt and equity in terms of risk and return.
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
Your data doesn't train Genie's AI
You keep IP ownership of your docs
1. Parties: Identification of lender, borrower, and any guarantors
2. Background: Context of the mezzanine financing arrangement and transaction overview
3. Definitions: Key terms used throughout the term sheet
4. Facility Amount: Size and nature of the mezzanine facility, including any tranches
5. Purpose: Permitted uses of the facility proceeds
6. Interest and Fees: Interest rate, payment terms, and associated fees including arrangement and commitment fees
7. Security Package: Details of security package and ranking relative to other debt
8. Conditions Precedent: Requirements to be met before drawdown including documentary requirements
9. Representations and Warranties: Standard representations and warranties from the borrower
10. Financial Covenants: Financial maintenance covenants and reporting requirements
1. Equity Kickers: Terms of any equity participation rights, including warrants or share options
2. Conversion Rights: Terms for converting debt to equity, including conversion price and timing
3. Intercreditor Provisions: Key terms governing relationship with senior lenders and other creditors
4. Board Rights: Any rights to board representation or observer status
5. Exit Rights: Provisions relating to change of control, IPO or other exit events
1. Security Package Details: Comprehensive breakdown of security arrangements and guarantees
2. Conditions Precedent Checklist: Detailed list of required documentation and conditions for drawdown
3. Financial Covenants Schedule: Detailed financial metrics, calculations and reporting requirements
4. Form of Drawdown Notice: Template for requesting facility drawdown
5. Pricing Schedule: Detailed breakdown of all fees, interest calculations and payment mechanics
Find the exact document you need
Startup Investment Term Sheet
An England & Wales document outlining preliminary terms for startup equity investment under English law.
Download
Convertible Equity Term Sheet
A preliminary agreement under English and Welsh law outlining terms for investment that converts to equity at a future date.
Download
Mezzanine Loan Term Sheet
A preliminary document under English and Welsh law outlining key terms for a hybrid debt instrument combining features of senior debt and equity financing.
Download
Limited Partnership Term Sheet
A preliminary document outlining key terms for establishing a limited partnership under English and Welsh law.
Download
Mezzanine Debt Term Sheet
A preliminary document outlining key terms for mezzanine financing under English and Welsh law, bridging the gap between senior debt and equity.
Download
ұԾ’s Security Promise
Genie is the safest place to draft. Here’s how we prioritise your privacy and security.
Your documents are private:
We do not train on your data; ұԾ’s AI improves independently
All data stored on Genie is private to your organisation
Your documents are protected:
Your documents are protected by ultra-secure 256-bit encryption
We are ISO27001 certified, so your data is secure
Organizational security:
You retain IP ownership of your documents and their information
You have full control over your data and who gets to see it
.png)