Facilitator Guide

Commitment Letters and Other Preliminary Documents

Facilitator Guide

Commitment Letters and Other Preliminary Documents

Topic: Commercial Lending
Duration: 1 hr
Format: Remote or in person

What’s covered

NDAs
Terms sheets
Commitment letters
SunGard provisions
Fee letters

Before the session

Prepare the Attendees

Send the attendees an invitation for the session. Include this link, which has the videos and exercise they’ll need to prepare.

https://www.hotshotlegal.com/trainings/commitment-letters-and-other-preliminary-documents/attendee

Prepare Yourself

Watch the videos and read the exercise so you’re familiar with the Hotshot material.

Course

Commitment Letters and Other Preliminary Documents

An introduction to the preliminary documents used in a loan transaction, including reasons why they’re used and their typical format and content. Documents covered include term sheets, commitment letters, and fee letters.
Exercise
PDF

During the session

Part 1: Knowledge Check

Ask attendees these questions to ensure they understand the topic:

Why are NDAs particularly important in the lending context?
What major economic terms of a deal are almost always decided at the term sheet stage?
Which terms are typically not negotiated in any detail until the main documentation stage?
What’re the main differences between soft commitments and hard commitments?
What kinds of deals more commonly use hard commitments? Why?
Why do the parties sometimes include a SunGard provision in the commitment letter?
What’s the main reason that lenders use a fee letter?
What are some of the common fees charged in a commercial lending deal?

Part 2: Group Exercise

Lead a group discussion based on the exercise. To encourage collaboration, divide the attendees into groups to discuss the exercise, then have a representative from each group summarize their views to the larger group. Call on people to share their thoughts and ask others to respond.

Tip for remote sessions: use your web conferencing system’s breakout room feature to divide people into groups.

Part 3: War Stories and Firm Specifics

Share your own experiences and guidance, including:

Anecdotes and war stories (e.g., about a near-disaster or a tough negotiation)
General practice tips (dos and don’ts)
Firm-specific guidance and practices

After the session

To continue their learning, attendees can check out related courses in Hotshot’s Commercial Lending topic.

About Hotshot

Hotshot helps lawyers develop their legal, business, and technology skills through short videos, quizzes, and summaries, and we help law firms and law schools plan and deliver engaging training programs. Our customers include Am Law 200 firms, top law schools, and regional and international firms.