The intercreditor conversation should come first

Most multi-lender facilities that collapse do so at documentation, on terms that could have been settled before pricing was ever discussed.

Pricing is the visible variable, so it gets negotiated first. But the questions that actually decide whether a facility can close are structural: who holds what charge, in what rank, who controls enforcement, and how the receivable waterfall is shared. A borrower who agrees pricing with three lenders and only then discovers that none will accept pari passu with the others has spent months to arrive back at the start.

The inversion is not difficult. Circulate the intercreditor position with the term sheet, not after it. Lenders who cannot live with the security architecture will say so immediately, which is worth more than a soft yes on price from a lender who will withdraw at documentation.

This also shortens the approach list, which is its own benefit. A structure that is settled before circulation is one lenders can decline quickly.