Fee letter

A private side letter that sets the amount of a fee, such as the arranger's or the Agent's. It keeps the arranger's pay out of an agreement that every lender and buyer reads. It is a Finance Document, so an unpaid fee is an Event of Default. Definition: Fee Letter · Chapter 4

Explained in Chapter 4, From Term Sheet to Signing, of Finance Deals & Syndicated Lending.

How it comes up, in Chapter 4

A Fee Letter is a private side letter between the borrower and the arranger or the agent. It holds the amount of the fee. Clause 10.3 does the same for the agency fee.

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Chapter 1 and this glossary are open to everyone; the whole edition is free to read with a free account until 31 January, and it stays open to an account opened by then.

As defined in the training facility agreement

any letter between the Arranger or the Agent and the Company setting out the amount of a fee referred to in clause 10;

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Related terms

Where this term lives

This term is part of one complete fictional deal, with every document attached and a test after every chapter. Open Finance Deals & Syndicated Lending → · All terms A–Z →