The Debt Financing Term Sheet is a crucial preliminary document used in the initial stages of a financing transaction under Irish law. It is typically prepared after initial commercial discussions between the lender and borrower, but before the drafting of detailed facility documentation. The term sheet captures the material commercial terms agreed between the parties and serves as a roadmap for lawyers to prepare the full financing documentation. It includes key information such as facility type, amount, pricing, security, and major conditions, while usually remaining non-binding except for specific provisions. This document is particularly important in the Irish market as it helps ensure compliance with local regulatory requirements and market practices while providing a clear framework for the transaction structure. The term sheet's content and complexity can vary significantly depending on the transaction size, nature of the borrower, and type of financing being provided.

1. Parties: Identification of the lender(s), borrower(s), and any guarantors

2. Background: Brief context of the proposed financing arrangement

3. Definitions: Key terms used throughout the term sheet

4. Facility Type and Purpose: Description of the type of facility (term loan, revolving credit, etc.) and its intended use

5. Principal Terms: Key financial terms including amount, currency, interest rate, and tenor

6. Repayment Terms: Schedule and method of repayment, including any amortization structure

7. Interest and Fees: Details of interest calculation, payment periods, and all applicable fees

8. Security: Overview of required security and guarantees

9. Key Conditions Precedent: Essential conditions that must be met before funding

10. Key Covenants: Fundamental financial and operational covenants

11. Events of Default: Summary of main events of default

12. Binding Nature: Statement on which terms are binding vs. non-binding

13. Timeline: Expected timeline for documentation and closing

14. Governing Law: Specification of Irish law as governing law