How is ticking fee calculated?
The Borrower will pay to the Agent, for the benefit of each Lender with a Term Loan Commitment, a ticking fee (“Ticking Fee”) equal to 0.375% per annum multiplied by each such Lender’s Term Loan Commitment.
What is a loan agency fee?
An Arrangement Fee (sometimes called a Completion Fee or Booking Fee) is an administration charge made by lenders for arranging credit – usually for a mortgage or for a business loan and sometimes for car finance.
How do delayed draw term loans work?
A delayed draw term loan (DDTL) is a special feature in a term loan that lets a borrower withdraw predefined amounts of a total pre-approved loan amount. The withdrawal periods—such as every three, six, or nine months—are also determined in advance.
What are duration fees?
A duration fee is a periodic fee on the outstanding balance of the bridge loan, sometimes increasing the longer the bridge loan remains outstanding. … Fees are typically equal to an underwriting fee that would have been paid had the bridge loan been replaced in a bond offering.
Should you pay an upfront fee for a loan?
Any up-front fee you need to pay before getting the loan is a cue to walk away. Avoid guarantees and unusual payment methods. … They will check your credit score and other documents before providing an interest rate and/or loan amount and will not ask you to pay an upfront fee.
What is a typical origination fee?
An origination fee is typically 0.5% to 1% of the loan amount and is charged by a lender as compensation for processing a loan application.
What does an agency loan mean?
Loan agency is a term used in capital markets to describe certain types of loan financing, commonly referred to as syndicated or bilateral loans. … In a syndicated loan, the amount needed by the borrower to achieve its goal is too large or risky for a single financial institution to loan the full amount itself.
What is a ticking fee delayed draw term loan?
Delayed draw term loans include a “ticking fee” – a fee paid from the borrower to the lender. The fee amount accumulates on the portion of the undrawn loan until the loan is either fully used, terminated by the borrower, or the commitment period expires.
Do delayed draw term loans amortize?
Delayed Draw I Term Loans made pursuant to Section 2.1(c) shall be amortized by 0.25% per Fiscal Quarter commencing with the last day of the first full Fiscal Quarter ending after the Delayed Draw I Term Loan Commitment Termination Date through the 81-month anniversary of the Closing Date, with the remaining balance …
How does unitranche debt work?
Unitranche debt or financing represents a hybrid loan structure that combines senior debt and subordinated debt into one loan, allowing banks to compete better against private debt funds. … Unitranche debt is typically used in institutional funding deals.