Investment banks typically compete to provide a financing in an LBO, the legally binding letters are called?

Question

Quizplus · Accepted Answer

Investment banks typically provide financing in an LBO and the legally binding letters that they compete to provide are called commitment papers. These papers outline the terms and conditions of the financing agreement between the bank and the private equity firm. Financing papers may also be used to refer to the same documents as commitment papers. Therefore, both options A and C are correct.

Investment Banks Typically Compete to Provide a Financing in an LBO