Search Icon
Not yet a member?   Find out more ->
Member Icon Already a member?

Press Release

Press Release

LMA and ELFA launch Best Practice Guide to Term Sheet Completeness

The Loan Market Association and the European Leveraged Finance Association are delighted to announce the publication of their Best Practice Guide to Term Sheet Completeness.

The provision of a term sheet to prospective participants in a syndicated loan transaction is a well-established and key component of the primary syndication phase of any deal. However, a lack of consistency with respect to content, and sufficiency of content, negatively impacts an investor’s ability to appropriately analyse risk at a key stage of the investment decision process.

Acting on feedback from their respective working groups, the LMA and the ELFA joined forces with the investor community, and specialist review providers, to identify a list of provisions that are of material importance to investors’ investment decisions. These provisions are clearly set out in this Best Practice Guide, and both the LMA and the ELFA strongly recommend a fulsome description of these in the first draft of the term sheet.

This resource is the product of a series of discussions over several months with loan investors, syndicate banks and law firms, with each stakeholder group contributing key insights into the process. It is hoped that better practice regarding term sheet completeness will aid the investment decision making process and increase liquidity into the leveraged loan market as a whole.

Commenting on the guidance, Nigel Houghton, Managing Director of the LMA, said:
“The LMA and ELFA reached out to a big cross section of the investor community on this. We listened to their concerns around content and completeness and we all worked together to get the message across. A detailed term sheet adds value to any primary deal, gives transparency and can unlock liquidity at the same time. Everyone benefits.”

Sabrina Fox, Executive Advisor to the ELFA, commented:
“Investors need fulsome disclosure on covenant provisions during the term sheet stage of a deal to make an informed investment decision. Members of the ELFA and the LMA felt that guidance would be useful to increasing the level of disclosure, and the project
reflects our commitment to increasing transparency and supporting effective engagement among all market participants in a deal.”

Download PDF
MAKE A CONTRIBUTION

You don’t need to be a member to add to the discussion. Share your experiences, thoughts and ideas with us and help us make a difference.

NEWS
28 July 2021
Press Release
European Leveraged Finance Association and Loan Market Association publish Best Practice Guide to Sustainability Linked Leveraged Loans

The European Leveraged Finance Association (ELFA) and Loan Market Association (LMA) have partnered to publish a best practice guidance to Sustainability Linked Leveraged Loans.

15 July 2021
Press Release
The European Leveraged Finance Association forms new CLO Investor Committee

The European Leveraged Finance Association (ELFA), a trade association comprised of European leveraged finance investors from over 45 institutional fixed income managers, including investment advisors, insurance companies, and pension funds, today announces the creation of a new committee to establish industry best practice and serve investors in the collateralised loan obligation (CLO) market

7 July 2021
Press Release
Concerns emerging over “greeniums” in high yield bonds as credit investors split on justification – ELFA research

Views among investors are mixed on whether “greeniums” (a premium for a green bond or sustainability-linked bond) are justified and investor concern is emerging over an issuer’s ability to “game” greeniums, according to a survey by the European Leveraged Finance Association (ELFA).

ELFA ON SOCIAL MEDIA