Term Sheet Workflow

Understand the term sheet process from creation to approval

Overview

The term sheet is the first step in creating a credit facility. As a borrower, you createa term sheet proposing the key terms of the facility you want, sign it via AdobeSign, and submit it to the facility agent for review. The facility agent then reviewsand decides to approve, reject, or request changes.

Who Can Use This

      • Borrowers : Create term sheets and submit them for facility agent review

      • Facility Agents : Review term sheets and make approval decisions

When This Is Used

Use the term sheet workflow when:

      • You want to propose a new credit facility

      • You need to understand how term sheets progress from creation to approval

      • You need to review and respond to change requests

      • You want to know what happens after term sheet approval

Step-by-Step Process

Part 1: Creating a Term Sheet (Borrower)

Step 1: Access the Credit Facility Dashboard

1. Navigate to Credit Facility

      • Log in to the platform with your Borrower credentials

      • From the left expandable menu (which expands when you hover over it),click on Credit Facility

      • The Credit Facility dashboard displays with term sheets you've created and master commitments

Step 2: Start Term Sheet Setup

1. Click Term Sheet Setup

      • Click the Term Sheet Setup button at the top right of the dashboard

      • Two options appear:

            ◦ Create Via Wizard : Opens a popup form to create the term sheet step-by-step

             ◦ Upload Signed : Upload an already-signed term sheet document

2. Select Create Via Wizard

      • Click Create Via Wizard to open the term sheet creation popup

                                                            Accessing Term Sheet - Create New Term Sheet

Step 3: Enter Term Sheet Details

1. Fill in Facility Information

      • Requested Commitment Amount : Enter the maximum amount you want to borrow

      • Advance Rate : Specify what percentage of collateral value can be borrowed(e.g., 85%)

      • Pricing Index : Select the base interest rate index (e.g., SOFR, SOFR 1M)

      • Margin : Enter the spread to be added to the pricing index (e.g., 2.5%)

      • Fixed Rate : Enter a fixed interest rate if applicable (alternative to index +margin)

      • Maturity Date : Select when the facility will mature

      • Drawdown Frequency : Choose how often drawdowns are allowed (e.g., Monthly, Quarterly)

      • Covenant Template : Select the applicable covenant template

                                                                                    Add Term Sheet Details

Step 4: Upload Required Documents

1.Upload Supporting Documents

      • Collateral Profile : Upload your collateral profile document       • Financial Statements : Upload your financial statements       • KYC Documents : Upload KYC documentation       • Collateral Data : Upload collateral data files

     

                                                                                          Upload Documents

Step 5: Create Draft and Sign

1. Create the Draft

      • Review all entered information for accuracy       • Verify all required fields are filled       • Ensure documents are uploaded correctly       • Click Create Draft       • Status changes to Draft

                                                                        Issuer - Term Sheet Creation

2. Sign via Adobe Sign

      • After clicking Create Draft, an Adobe Sign popup window opens automatically

      • The popup shows the term sheet document with all the details you entered

      • Review the document

      • Complete the electronic signature process

      • After signing, status changes to BorrowerSigned

Step 6: Submit to Facility Agent

1. Submit Term Sheet Popup Appears

      • After signing, a Submit to FA popup appears

      • Review the submission details

2. Choose to Submit or Cancel

      • Click Submit to submit the term sheet to the facility agent

      • Status changes from BorrowerSigned to FAReview

      • Facility agent receives notification

      • If you click Cancel , you can submit later from the dashboard

                                                                              Submit Term Sheet to FA

3. Dashboard Actions After Signing

      • If you cancelled the Submit popup, the action column in the dashboardshows Submit Term Sheet

      • Click this action to submit when ready

      • After submitting, the action changes to View Term Sheet

Part 2: Facility Agent Review

Step 1: Access Review

1. Navigate to Credit Facility

      • Log in as Facility Agent

      • Go to Credit Facility section from the left menu

      • Find the term sheet in the Set-up tab

2. Click Review Term Sheet

      • In the Actions column, click Review Term Sheet

      • A popup opens showing all term sheet details and attached documents

                                                                              Review Term Sheet - FA

Step 2: Make Decision

1. Review Options

      • In the Review Term Sheet popup, three buttons are available:

            ◦ Approve : Term sheet meets requirements

            ◦ Reject : Term sheet doesn't meet requirements

            ◦ Request Changes : Modifications are needed

2. Approve

      • Click Approve when all requirements are met

      • Status changes to Accepted

      • Master commitment is automatically created with Draft status

      • Borrower receives notification

3. Reject

      • Click Reject when requirements are not met

      • Provide rejection reason

      • Status changes to Rejected (final state)

      • Borrower receives notification

      • Rejected term sheets cannot be resubmitted; borrower must create a newone

4. Request Changes

      • Click Request Changes when modifications are needed

      • Enter details about what needs to be changed

      • Status changes to CHANGES_REQUESTED

      • Borrower receives notification and can edit and resubmit

Part 3: Responding to Change Requests (Borrower)

Step 1: Review Change Request

1. Check Dashboard

      • Term sheet status shows CHANGES_REQUESTED

      • Action column shows Edit Term Sheet

      • Read the change request details carefully

                                                                        Review Changes Requested - Issuer

Step 2: Make Changes

1. Edit Term Sheet

      • Click Edit Term Sheet action

      • The term sheet opens for editing

      • Update fields as requested by the facility agent

      • Modify documents if needed

      • Address all requested changes

Step 3: Update and Re-sign

1. Click Update

      • After making all changes, click Update

      • An Adobe Sign popup appears again

      • Complete the electronic signature

      • Status changes to BorrowerSigned

2. Resubmit

      • After signing, the Submit to FA popup appears

      • Click Submit to resubmit the updated term sheet

      • Status changes to FAReview

      • Facility agent reviews the updated term sheet

Term Sheet Statuses

Status	Meaning	Available Actions
Draft	Initial creation, not yet signed	Edit, sign
BorrowerSigned	Signed by borrower, ready to  submit	Submit to FA
FAReview	Submitted, awaiting facility agent decision	View (borrower), Review(FA)
Accepted	Approved by facility agent	View (master commitment created)
Rejected	Rejected by facility agent(final)	View only
CHANGES_REQUESTED	Facility agent requestedmodifications	Edit, sign, resubmit

Rules & Validations

      • Signing Required : You must sign the term sheet via Adobe Sign beforesubmitting. Unsigned term sheets cannot be submitted.

      • One Submission at a Time : Term sheets can only be submitted once. Aftersubmission, you wait for the facility agent's decision.

      • No Edit After Submission : You cannot edit term sheets while they're inFAReview status. You can only edit in Draft or CHANGES_REQUESTED status.

      • Rejected Is Final : Rejected term sheets cannot be resubmitted. Create a newterm sheet if rejected.

      • Auto-Create Master Commitment : When approved, a master commitment isautomatically created. You don't need to create it manually.

What Happens Next

After Creating and Signing:

      • Submit to facility agent when ready

      • Wait for facility agent review

After Submitting:

      • Facility agent reviews your term sheet

      • You receive notification of the decision (Approved, Rejected, or Changes Requested)

After Approval:

      • Master commitment is automatically created

      • Facility agent configures the facility (adds lenders, rules)

      • Facility agent submits to lenders for approval

      • After lender approval, facility becomes active

After Rejection:

      • Review rejection reason

      • Create a new term sheet addressing the issues

After Changes Requested:

      • Edit the term sheet to address requested changes

      • Sign and resubmit for review

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