Definition Equity Commitment Letter

In leveraged buyouts lbos by private equity firms a letter agreement entered into between the private equity fund and the acquisition vehicle formed to finance the acquisition of a portfolio company.

Definition equity commitment letter. In leveraged buyouts lbos by private equity firms a letter agreement entered into between the private equity fund and the acquisition vehicle formed to finance the acquisition of a portfolio company. In the equity commitment letter the grantor agrees to subscribe directly or indirectly for bidco shares and or loan stock of bidco. This letter agreement sets out the terms and conditions by which an equity sponsor commits to purchase equity in a newly formed holding company in order to finance the acquisition of a portfolio company. An equity commitment letter for use in a private equity buyout.

Series 200 and pantheon access co investment program l p. The loan commitment serves as a formal record of the loan processing but is not the loan contract. Series 102 each a co investor and collectively the co investors. This standard document has integrated notes with important explanations and drafting and negotiating tips.

The letter of commitment specifies the amount of a loan that the bank is willing to offer the borrower. Equity commitment letter means that certain letter agreement dated as of august 9 2015 by and among the equity investors new efh ov2 efh corp and efih pursuant to which among other things each equity investor has committed subject to the terms and conditions thereof to make new money equity investments in one or both of new efh and ov2 in the proportions and amounts set forth therein in order to fund a portion of the amounts payable by new efh and ov2 pursuant to the merger and. The equity commitment shall be subject to a the satisfaction in full or waiver if permissible at or prior to the closing of each of the conditions set forth in section 7 01 and section 7 02 of the merger agreement other than any conditions that by their nature are to be satisfied at the closing but subject to the prior or substantially concurrent satisfaction of such conditions b the substantially contemporaneous consummation of the closing c the debt financing and or the. Equity commitment letters means the equity financing commitment letters attached as annex b entered on or prior to the date hereof between purchaser and the investment funds named therein each naming seller as an express third party beneficiary and pursuant to which such investment funds have committed subject only to the financing conditions set forth therein to invest or cause to be invested in the equity capital of purchaser the amount set forth therein for the purposes of financing.

Commitment this letter agreement confirms the commitment of the sponsor subject to the terms and conditions set forth herein to subscribe for or cause to be subscribed for equity securities of holdco and to pay or cause to be paid to holdco in immediately available funds at or prior to the closing an aggregate cash purchase price equal to 53 600 000 such sum the commitment. The amount may be below or above what the borrower requested.