In the context of a bank loan financing, the fee letter sets out the various fees due to the agents and initial lenders for underwriting and arranging the financing (including fees to be paid if the deal is not consummated or the borrower does an alternate transaction with other lenders), and administrative agent fees. The fee letter does not include other forms of revenue for the lenders such as interest charged on the loans. The fee letter also contains flex language and other confidential provisions since it is not disclosed to third parties without the lenders' permission.

For further information, see Practice Note, Fee Letters Overview: Lending.