The document used to lay our terms & conditions in the initial stages of negotiations (prior to documentation)
What is a Term Sheet?
100
The lead underwriting bank
Who is the Arranger?
100
OID
What is original issue discount
100
1% annual amortization, payable quarterly with a bullet upon maturity
What is the typical amortization schedule for a Term Loan B?
100
Discussing something later
What is "taking it off line"
200
The documents negotiated and agreed to prior to submitting a final bid
What are the Commitment Papers?
200
A series of presentations management gives in order to sell a bond
What is a Road Show?
200
The London Interbank Rate
What is LIBOR?
200
Fee paid on the unused portion of the revolver
What is the undrawn spread?
200
A security or industry in which the current price or value has dropped significantly in a short period of time
What is a "Falling Knife"
300
The commonly negotiated term which allows for additional injections of capital from the sponsor
What is an Equity Cure?
300
Special-purpose vehicles set up to hold and manage pools of leveraged loans
What are CLOs?
300
The fee charged by the bank for providing a commitment to fund capital
What is the commitment fee?
300
(Debt + Rent*8)/(EBITDA + Rent)
What is the EBITDAR ratio?
300
Open Kimono
What is the phrase that means you are being totally honest or putting all your cards on the table for the other side to see - not hiding anything from the other negotiating party.
400
The form sponsors/lawyers use to compare financing proposals during negotiations with multiple parties
What is a Grid?
400
The period during which a bond cannot be redeemed without paying a premium
What is the Call Period?
400
A bond that does not have the same reporting and disclosure requirements as typical bonds. Typically more expensive
What is a 144A bond?
400
Running a case with the most aggressive flex fees to see what the possible downside scenario would be
What is running the model "at the caps"
400
What banks want sponsors to have so they require a minimum equity cushion and dislike dividends
What is "having skin in the game?"
500
A commonly negotiated term which limits the use of Company funds for certain types of transactions
What is a basket?
500
The period in a registered Securities Offering after the Registration Statement has been filed with the SEC when offers are permitted but sales are prohibited
What is the Waiting Period?
500
The percentage return that the annual coupon payment provides the investor
What is the current yield?
500
The amount of OID equal to a 1% increase in overall cost of financing
What is 1 point of OID?
500
When a senior person won't be able to look at anything or do any real work except answer calls and forward e-mails