Everyone knows that termsheets are becoming more and more complex. The capital markets team at one large cap sponsor discovered just how complex when their terms exceeded the character limit for Excel.
The Challenge
A global private equity fund was negotiating a complex fund finance package. As is typical, they wanted to agree a number of legal terms upfront, to make the full-form documentation process more efficient.
This was done through a comprehensive termsheet which went through multiple rounds of negotiations with financing providers on Termgrid.
As lender comments piled up, the termsheet became more and more extensive – this became apparent when the sponsor wanted to download one of the termsheet iterations in Excel and ran into an error due to exceeding the maximum number of characters allowed into a single cell.
The Solution
Luckily, the team is a Termgrid client, and have been using our Termsheet functionality throughout multiple complex processes.
With no limitations in terms of number of characters for terms sheets on the platform, the platform offered a seamless experience and allowed the sponsor to upload, negotiate and compare termsheet versions and lender responses in just a few clicks.
The Outcome
With the full termsheet digitized, the team kept a tight grip on the financing process and was able to progress quickly on their deal.
“Fund finance termsheets are long, negotiated, and full of nuance. Excel has limits. Our deals don’t,” explained a director at the firm. “Termgrid gave us a clean, reliable way to manage complex terms without ever worrying about what might get lost. Digitizing our workflow wasn’t just convenient — it eliminated real deal risk.”
