letter of offer
commitment letter is a letter (also called a letter of offer) in which a lender sets out the terms on which it is prepared to lend money to the lender. It is generally accompanied by a term sheet setting out the terms of the loan. If the letter is then signed by the borrower and returned to the lender it forms the mandate.
USA
A letter agreement in which a lender sets out the terms on which it is prepared to lend money to the borrower. It is generally accompanied by a term sheet which sets out the terms of the loan.
In leveraged buyouts by private equity firms, this letter is commonly known as a debt commitment letter, to distinguish it from an equity commitment letter. The lenders typically address the debt commitment letter to the newly formed acquisition vehicle and commit to it to provide the debt financing at the closing of the transaction on satisfaction of certain conditions. The debt commitment letter is usually delivered to the seller (in a stock or asset sale) or target company (in a merger) when the acquisition agreement is executed.
For further information see Practice Note, Commitment Letters Overview: Lending (www.practicallaw.com/1-381-0450).
See also

Practical Law Dictionary. Glossary of UK, US and international legal terms. . 2010.

Look at other dictionaries:

  • letter of offer and acceptance — Standard Department of Defense form on which the US Government documents its offer to transfer to a foreign government or international organization US defense articles and services via foreign military sales pursuant to the Arms Export Control… …   Military dictionary

  • Letter To America — (often abbreviated to LTA) is a weekly spoken podcast produced principally in Belfast, Northern Ireland by the American television director and artist Jett Loe. It is also the name of an associated weblog, which describes the podcast as a… …   Wikipedia

  • offer — vb Offer, proffer, tender, present, prefer can all mean to lay, set, or put something before another for acceptance. Offer, the most common of these words, frequently implies a putting before one something which may be accepted or rejected {there …   New Dictionary of Synonyms

  • Offer and acceptance — Contract law Part o …   Wikipedia

  • Letter (message) — The famous Einstein letter from Edward Teller and Leó Szilárd to US President Franklin Roosevelt suggesting an atomic bomb project. Click here for page 2. A letter is a written message from one party to another. The role of letters in… …   Wikipedia

  • letter — noun 1 written/printed message ADJECTIVE ▪ lengthy, long ▪ brief, short ▪ ten page, etc. ▪ rambling …   Collocations dictionary

  • Letter case — For the minimalist musical sub genre, see Lowercase (music). For New Testament minuscules, see Category:Greek New Testament minuscules. Williamsburg eighteenth century press letters In orthography and typography, letter case (or just case) is the …   Wikipedia

  • Letter box — This article is about boxes for depositing letters. For video framing, see letterbox. For the type of interprocess communication, see MailSlot . A letter box, letterbox, letter plate, letter hole, mail slot, or mailbox is a receptacle for… …   Wikipedia

  • Letter monopoly — The Letter monopoly (German: Briefmonopol) was enshrined in the German Postgesetz law, and until the end of 2005 it granted an exclusive license to the German post office, Deutsche Post, for the transport of letters and catalog deliveries of up… …   Wikipedia

  • Letter from an Unknown Woman (2004 film) — Infobox Chinese Film name = Letter from an Unknown Woman image size = caption = director = Xu Jinglei producer = Dong Ping Xu Jinglei Zhao Yijun Ma Paobing writer = Xu Jinglei Stefan Zweig (novella) starring = Xu Jinglei Jiang Wen Lin Yuan Sun… …   Wikipedia

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”