Corporate Debt Information Needed for M&A Due Diligence
To complete M&A due diligence, a Buyer needs access to information about all aspects of the business. One of those aspects is debt and financing arrangements. This is a comprehensive list of the kinds of things that a Seller will need to provide to the Buyer about the debt and financing instruments of the company.
Schedule and copies of all promissory notes, bonds (including industrial development revenue bonds), commercial paper, loan/credit agreements, indentures, and other agreements or instruments relating to the short-term and long-term borrowing of money involving the company and existing at any time during the reporting period.
Schedule and copies of any guaranties, repurchase obligations, and other arrangements whereby the credit of the company is obligated for the indebtedness of a person (including one of the company) and subordination and inter-creditor agreements involving the company.
Schedule and copies of all security agreements, pledge agreements, mortgages, and other agreements or instruments whereby the properties or assets of the company are subject to the indebtedness of a person (including one of the company).
Schedule and copies of any letters of credit, financial surety/performance bonds or similar credit support devices outstanding for the benefit of the company and related reimbursement or indemnification agreements.
Copies of any compliance certificates, including borrowing base certificates and covenant compliance calculations, supplied to any creditor during the reporting period.
Copies of material correspondence with any creditor during the reporting period.
Schedule and details of any existing defaults under credit arrangements and any events that have occurred that, with the giving of notice or the passage of time, will become such a default.