Overview of Commercial Loan Transactions

Online Class material is 100% online, accessible by all standard web browsers. Use your desktop, laptop, tablet, or smartphone--your progress will by synced across all devices.

On-Demand The class is fully asynchronous. Do the work at your own pace, turn in your assignment when you're ready, and get instant feedback via model answers and video review sessions.

Interactive Learn with dynamic, interactive modules that keep you engaged in active learning using a variety of learning modes.

Experiential Includes practical assessments throughout the class, plus a capstone assignment where you apply your skills in the context of a real-world matter.

Overview

This course is designed to introduce students to commercial loan transactions. The course starts by defining commercial finance in general and identifying the purpose of loan transactions. It then describes the common types of loans and identifies the components of a commercial loan transaction. Subsequently, the course identifies the key documents in a commercial loan transaction and describes the role of commitment letters and term sheets. Finally, the course identifies the essential roles transactional attorneys play in commercial finance transactions.

Objectives: Upon completion of this course, participants will be able to:

Identify the typical structures for commercial finance transactions
Differentiate between different types of commercial loans and available sources of funds
Recognize terminology used in commercial loan transactions
Understand the role and type of financial covenants found in commercial loan transactions
Review and summarize a typical commercial loan term sheet

Objectives

Upon completion of this course, participants will be able to:

What is commercial finance?

What do we mean by commercial finance?
Why is commercial finance important for businesses?
Commercial finance key terms

Common types of loans

Term loans
Revolving lines of credit
Project loans
Real estate loans

Components of a commercial loan transaction

Determining the type of loan
Structuring the transaction
Drafting the loan documentation
Closing and refinancing of existing indebtedness

Key documents in a commercial loan transaction
Role of commitment letter/term sheet

Purpose of a commitment letter and term sheet
Interest rates
Floors and caps on variable loan rates
Commitment/origination fees & other out-of-pocket expenses

Roles of transactional attorneys in commercial loan transactions

Supplemental Materials/Additional Resources:

Sample term sheet
Sample commitment letter
Sample credit agreement
Sample note
Sample guaranty

Simulation Exercise

Students are presented with a banker that has reached out regarding a proposed credit facility consisting of a term loan and a revolving loan facility that the bank team has greenlighted for approval. Students are asked to (i) prepare a commitment letter that commits the bank to legally provide the credit facility and (ii) provide a succinct term sheet that spells out the salient terms for the borrower.

Instructors Who Practice What They Teach

Adriel Sanders

x-Bryan Cave Leighton Paisner

David Case

x-White & Case; x-Orrick

Doug Young

x-Baker McKenzie; x-White & Case

Aaron Melville

Global Head of Tech Transactions, Uber; x-Disney; x-O’Melveny; x-Weil Gotshal

Chris Drews

x-Disney

Julie Ryan

Head of Experiential Learning, AltaClaro; x-Akin Gump; x-Clifford Chance

Mick Galvin

x-Sidley; x-Allen & Overy

Stephen Kaplitt

x-Weil Gotshal; x-Cadwalader

Clara Duffield

x-Baker McKenzie

Mike Shea

x-Baker McKenzie, x-Morrison & Foerster

John Babcock

Partner, Waldrep Wall

Success Stories

"I think this is a gamechanger for training. Associates can benefit from the guidance of real practitioners and learn in a low stakes environment."

Anjie Vichayanonda Associate, Haynes & Boone LLP

"As an experienced practitioner who has worked in both AmLaw 100 and public company, in-house environments, the training AltaClaro provided helped supplement my knowledge of corporate law."

Ryan Nayar Legal Counsel, Centrica

Interested in this Class?

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