What does incremental loan mean?

What is incremental equivalent debt?

Incremental Equivalent Debt means Indebtedness issued, incurred or otherwise obtained by the Borrower in respect of one or more series of senior unsecured notes, senior secured first lien or junior lien notes or subordinated notes (in each case issued in a public offering, Rule 144A or other private placement or bridge …

What is the difference between a revolving loan and a term loan?

A revolving loan facility is a form of credit issued by a financial institution that provides the borrower with the ability to draw down or withdraw, repay, and withdraw again. … In contrast, a term loan provides a borrower with funds followed by a fixed payment schedule.

What is a free and clear incremental debt basket?

The “free and clear” basket is a fixed amount that the borrower is permitted to incur without having to demonstrate pro forma compliance with a financial ratio.

Which is better term loan or overdraft?

Loans have fixed terms and repayment schedules. This can help you plan expenditure and cash flow but makes them less flexible than an overdraft. You can often borrow larger amounts with loans, making them better for long term high value purchases.

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What is an inside maturity basket?

Related Definitions

Inside Maturity Basket means Indebtedness in an aggregate principal amount not to exceed $400,000,000 at any time outstanding, as designated by the Borrower from time to time.

What is a grower basket?

Grower baskets are typically structured as the greater of a fixed amount and a percentage of a variable, usually EBITDA. … The concept of a grower basket is to grant the borrower increased availability under the basket when its financial performance improves or the size of its business significantly expands over time.

What is MFN in leveraged finance?

While many borrowers take advantage of this opportunity, there are numerous factors to consider before doing so – particularly regarding the so-called Most Favored Nation (“MFN”) provisions applicable to incremental credit facilities.

Is a mortgage an installment loan or revolving credit?

Revolving credit allows a borrower to spend the money they have borrowed, repay it, and borrow again as needed. Credit cards and credit lines are examples of revolving credit. Examples of installment loans include mortgages, auto loans, student loans, and personal loans.

Do longer loans have higher interest rates?

While short-term loans may have higher interest rates at first, business owners who take on long-term financing typically end up paying more in interest. The longer your loan has a balance, the longer you’re paying interest on the money you borrowed. … This makes it riskier for the lender to give you the money.

When you use revolving credit you can?

Revolving credit is a type of loan that gives you access to a set amount of money. You can access money until you’ve borrowed up to the maximum amount, also known as your credit limit. As you repay the outstanding balance, plus any interest, you unlock the ability to borrow against the account again.

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