USING LOAN NOTES AS PART OF TRANSACTION - (UK)

Working on a transaction at the moment and we are considering using Loan Notes for the deferred component.
The deferred component is a fixed amount, payable by a cash sweep each year from CFADS (subject to a minimum cash at bank balance) until deferred is paid down.

Question is are Loan Notes to the vendor a good way to provide security to the vendor, are there any risks to us, if so how do we mitigate, any other considerations we should be aware of?

Many thanks in advance.



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