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Loan Note Template
I need a Loan Note Template for a £500,000 secured loan to my tech startup, with 8% interest rate and quarterly repayments starting from March 2025, including an option for early repayment without penalty.
1. 1. Parties: Identification of the lender(s) and borrower(s), including full legal names and addresses
2. 2. Background: Context of the loan note issuance and basic commercial terms
3. 3. Definitions and Interpretation: Definitions of key terms used throughout the document and interpretation rules
4. 4. Principal Amount: Details of the loan amount, currency, and issuance terms
5. 5. Interest: Interest rate, calculation method, payment dates, and default interest provisions
6. 6. Repayment Terms: Terms for repayment including maturity date, early repayment provisions, and payment mechanics
7. 7. Events of Default: List of circumstances constituting default and consequences of default
8. 8. Representations and Warranties: Standard representations and warranties from the borrower
9. 9. Covenants: Positive and negative undertakings by the borrower
10. 10. Notices: Process for serving notices between parties
11. 11. Assignment and Transfer: Provisions regarding assignment and transfer of the loan note
12. 12. Governing Law and Jurisdiction: Specification of English and Welsh law as governing law and jurisdiction
1. Security: Details of any assets securing the loan note, including creation and enforcement of security
2. Conversion Rights: Terms and mechanics for converting the loan note to equity, including conversion price and process
3. Subordination: Provisions regarding ranking of the loan note relative to other debt
4. Tax Gross-Up: Provisions for tax gross-up payments and tax-related representations
5. Information Rights: Requirements for financial and other information to be provided to noteholders
1. Schedule 1 - Form of Transfer Certificate: Standard form for documenting transfers of the loan note
2. Schedule 2 - Conversion Mechanics: Detailed procedures and calculations for conversion of the loan note to equity
3. Schedule 3 - Security Documents: Forms of security documents and security registration requirements
4. Schedule 4 - Repayment Schedule: Detailed schedule of repayment dates and amounts
5. Schedule 5 - Conditions Precedent: List of documents and conditions required before the loan note can be issued
Authors
Affiliate
Business Day
Change of Control
Completion Date
Default Interest Rate
Event of Default
Financial Indebtedness
Group
Interest Payment Date
Interest Period
Interest Rate
Issue Date
Issuer
Lender
Loan Note
Maturity Date
Note Holder
Permitted Security
Principal Amount
Redemption Date
Redemption Notice
Related Party
Repayment Date
Security
Security Documents
Subsidiary
Tax
Transfer
Working Capital
Conversion Date
Conversion Price
Conversion Rights
Qualifying Financing Round
Valuation
Shares
Share Capital
Subscription
Repayment
Interest Calculation
Default Interest
Security
Representations and Warranties
Covenants
Events of Default
Acceleration
Transferability
Notices
Amendments and Waivers
Assignment
Set-off
Confidentiality
Tax Gross-up
Costs and Expenses
Governing Law
Jurisdiction
Enforcement
Severability
Further Assurance
Counterparts
Third Party Rights
Conversion Rights
Security Trustee
Subordination
Guarantee
Information Rights
Registration Rights
Tag-Along Rights
Drag-Along Rights
Pre-emption Rights
Anti-dilution Protection
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