Term Sheet, Facility, and Funding
Complete guide to the credit facility workflow from term sheet to funding
Overview
This guide provides a complete walkthrough of the credit facility workflow, from creating a term sheet through facility setup to funding. It covers all three major phases: Term Sheet, Facility (Master Commitment), and Funding.
Phase 1: Term Sheet
What Is a Term Sheet
A term sheet defines the preliminary terms of the credit facility agreement between the borrower and lenders.
Term Sheet Flow
Term Sheet Statuses
Status | Description |
Draft | Created, can be edited |
BorrowerSigned | Signed, ready to submit |
FAReview | Under facility agent review |
Accepted | Approved, MC created |
Rejected | Declined (final) |
CHANGES_REQUESTED | FA requested modifications |
Phase 2: Facility (Master Commitment)
What Is a Master Commitment
A master commitment is the formal facility agreement that defines the terms, lenders, and commitment amounts.
Facility Flow
Master Commitment Statuses
Status | Description |
Draft | FA configuring facility |
PendingLenderApproval | Awaiting lender review |
Active | Approved, operational |
Facility Setup Status
Status | Description | Borrower Can Request Funding |
In Progress | Deal modelling not complete | No |
Completed | Deal modelling complete | Yes |
Phase 3: Funding
What Is Funding
Funding is the process by which borrowers request and receive funds from lenders through the facility.
Funding Flow
Funding Request Statuses
Status | Description |
DRAFT | Created, can be edited |
FAReview | Under FA review |
APPROVED | Approved, notice generated |
REJECTED | Declined (final) |
| CHANGES_REQUESTED | FA requested modifications |
Funding Notice Process
Step | Who Acts | Action |
1 | System | Auto-generate notice |
2 | FA | Approve |
3 | FA | E-sign for each lender |
4 | Lender | Review and transfer funds |
| 5 | Lender | Confirm and Settle |
Complete End-to-End Flow
TERM SHEET PHASE
1. Borrower: Create Term Sheet
2. Borrower: Sign via Adobe Sign
3. Borrower: Submit to FA
4. FA: Review → Approve
FACILITY PHASE
5. System: Auto-create Master Commitment
6. FA: Configure facility details
7. FA: Add lenders and allocations
8. FA: Create Facility
9. Lender: Review & Approve (E-Sign)
10. FA: Complete Deal Modelling
FUNDING PHASE
11. Borrower: Map loans to facility
12. Borrower: Create Funding Request → Submit
13. FA: Review → Approve
14. System: Auto-create Funding Notice
15. FA: Approve → E-sign for each lender
16. Lender: Review → Transfer funds → Confirm and Settle
17. Tokens transferred to Borrower
Role Actions Summary
Borrower Actions
Phase | Actions |
Term Sheet | Create, Sign, Submit |
Facility | Wait for activation |
Funding | Map loans, Create request, Submit |
Facility Agent Actions
Phase | Actions |
Term Sheet | Review, Approve/Reject/Request Changes |
Facility | Configure, Add lenders, Create, Deal modelling |
Funding | Review request, Approve, E-sign for lenders |
Lender Actions
Phase | Actions |
Term Sheet | None |
Facility | Review & Approve (E-Sign) |
Funding | Review notice, Transfer funds, Confirm and Settle |
Key Points
Sequential Phases - Each phase must complete before the next can begin.
Auto-Creation - Master commitments and funding notices are auto-created from approvals.
E-Sign Integration - Adobe Sign is used for legal signatures throughout.
Multiple Approvals - Different parties approve at different stages.
Funding Cycle - Funding requests can be repeated multiple times within an active facility.
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