What is a swing line loan?
Swingline loans are normally made available as a component of a revolving credit facility by one of the lenders designated as the “swingline lender.” Swingline loans are designed to give the borrower more rapid access to funds than would otherwise be permitted by the notice periods prescribed in the credit agreement.
What is a swing line sublimit?
A swingline facility is a sub-limit of a syndicated revolving credit loan whereby a lender makes a short term (operating not more than five days) loan, in smaller amounts, on shorter notice, and with a higher interest rate than is otherwise available for revolving credit loans.
What is a swing line commitment?
Swing Line Commitment means the obligation of the Swing Line Lender to make Swing Line Loans up to a maximum principal amount of $5,000,000 at any one time outstanding.
What is a sublimit on a loan?
Loan Sublimit means, the amount requested by the Parent from time to time provided, that at no time, shall the Loan Sublimit be an amount in excess of 50% of the Aggregate Commitments at such time.
What is a sublimit on a revolver?
Revolver Sublimit means, when used in reference to Company, the Total Multicurrency Revolving Commitment and when used in reference to any Other Subsidiary Borrower, the maximum aggregate Effective Amount of outstanding Multicurrency Revolving Loans, LC Obligations and Swing Line Loans permitted to be borrowed by such …
What is an undrawn loan?
Undrawn Commitment (Banking & Finance Glossary) Refers to the loans that the Lender has agreed to be made available to the Borrower under a Revolving Credit Facility or a Delayed Draw Term Facility that the Borrower has either not drawn, or has drawn and repaid.
What is a facility sublimit?
Sublimit Facility means a line of credit extended to the Borrower in the form of Sublimit Loans not to exceed with respect to each Eligible Sublimit Loan Note, the Sublimit Formula, provided that the maximum that will be advanced against all Eligible Sublimit Loan Notes at any time will not exceed $25,000,000.
What is RCF loan?
Revolving Credit Facility or RCF – A revolving credit facility is a type of credit that does not have a fixed number of payments, in contrast to fixed term loans. Corporate revolving credit facilities are typically used to provide liquidity for an investment company’s day-to-day operations.
What is RCF in finance?
Within the different types of sustainable loans, Revolving Credit Facilities (RCF), the already known financing product, have become increasingly popular in recent months. A RCF is a financing instrument that companies frequently recur to, particularly in syndicated format.
What are Swingline loans and how do they work?
Swingline loans are helpful to companies since they provide much-needed cash relatively quickly. However, swingline loans often carry higher interest rates than traditional lines of credit, and the funds are limited to covering debt obligations.
What is a Swingline debt facility?
A type of lending facility that can be used to cater to the debt repayments in full or partial is termed as a Swingline debt facility. Swingline loan is a form of short-term financing. Large corporations, in particular, use the Swingline debt facility to serve their borrowing repayments.
What is an example of a Swingline facility?
One recent example of a Swingline Facility is of Wells Fargo signing a $50 million revolving credit facility with United Fire Group Inc. The revolving facility included a $5 million Swingline Sub-facility to cater to the loan repayment needs of the borrower.
How do large investment entities invest in syndicate loan funds?
Large investment entities make contributed investments in syndicate loan funds, which are then used to lend money to other institutes. Borrowers of these large loans are also large corporate entities, public companies, and even governments. READ: Asset-Backed Security: What Is It and How Does It Work?