delayed draw term loan commitment fee

Any Borrowing of a Delayed Draw Term Loan will automatically and permanently reduce the Delayed Draw Term Loan Commitment in an amount corresponding to the amount of such Borrowing. The commitment fee is typically lower than the interest rate that is charged on the drawn portion of the loans.

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2 a 1 Closing Fee calculated as a percentage of.

. Delayed draw term loans include a ticking fee a fee paid from the borrower to the lender. Amounts borrowed under this Section 201c and repaid or. Funding and maintaining its Loans and its Commitment.

The closing date through one year following the. Borrower hereby agrees to pay Agent for the account of each Lender a commitment fee the Delayed Draw Term Loan Commitment Fee in an aggregate amount equal to 100 of the amount set forth beside such Lenders name on Schedule C-2 to the Credit Agreement as amended hereby which Delayed Draw Term Loan. When a reporting entity enters into a delayed draw debt agreement it pays a commitment fee to the lender in exchange for access to capital over the contractual term.

While the fee structure for DDTLs has always been a negotiated point and has varied based on the actual arrangements sponsorsborrowers and debt providers the migration of the DDTL tranche upmarket has put the spotlight on some of those economics. Closing date and z 2 for the period after one. A delayed draw term loan is a special feature in a term loan that stipulates that the borrower can withdraw predefined amounts of the total pre-approved amount of a term loan at contractual times.

DELAYED DRAW TERM LOAN CREDIT AGREEMENT. Borrower agrees to pay to the Administrative Agent for the account of each Delayed Draw Term Loan Lender a ticking fee a Delayed Draw Ticking Fee at a per annum rate equal to 50 of the Applicable Margin with respect to Eurodollar Term Loans on the average daily amount of such Delayed Draw Term Loan Lenders Delayed Draw Term Loan Commitment from August 27. The payment of this fee is not absolute.

This Credit Agreement dated as of August 31 2012 is among Par Petroleum Corporation a Delaware corporation Borrower the Guarantors party hereto from time to time together with the Borrower each a Credit Party and collectively the Credit Parties the lenders party hereto from time to time the Lenders and. If you take out a DDTL youll be responsible for a ticking fee. A fee paid by a borrower on the unused portion of its revolving credit loans or delayed-draw term loans to compensate the lenders for their commitment to make the funds available to the borrower for a certain period of time.

ARTICLE I DEFINITIONS AND ACCOUNTING TERMS 1. Able on the closing date on a nonrefundable basis. There is also generally a 30 to 60 day holiday after the underlying closes on which no fee is charged.

137500000 DELAYED DRAW TERM LOAN FACILITY Table of Contents Page. 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. 5322 Nonrevolving Loan Commitment Fees 58 5323 Shelf Registration Costs and Fees 59 533 Accounting for Costs and Fees Upon Debt Issuance 59 5331 Debt Issuance Costs 59 5332 Fees and Other Amounts Paid to the Creditor 60 534 Accounting After Debt Issuance 61 54 Costs and Fees Associated With Revolving Debt 61.

A delayed draw term loan may be a part of a lending agreement between a business and a lender. Delayed Draw Term Loan Commitment Fee. Total DDTL commitments ie 1 million pay-.

Fee Letter means that certain fee letter dated November 16. The Borrower agrees to pay to the Administrative Agent for the ratable benefit of the Delayed Draw Term Loan Lenders a ticking fee the Delayed Draw Ticking Fee in an amount equal to the Applicable Margin per annum on the average daily unused amount of the Delayed Draw Term Loan Committed Amount commencing on the Closing Date. Like revolvers they have commitment fees around 1 and in addition they carry ticking fees which charge the borrower additional points the longer the commitment is outstanding and unused.

Delayed Draw Ticking Fee. The Borrower shall pay a commitment fee of 50 of the interest rate margin with respect to LIBOR borrowings per annum in each case on the daily average unused portion of the Delayed-Draw Term Loan Facility payable quarterly in arrears on the last day of each fiscal quarter commencing with the first full fiscal quarter ending after the Closing Date with the. DDTLs carry ticking fees akin to commitment fees which are payable during the commitment period on the unused portion of.

That is the fees are paid whether or not the funds are ever drawn down. It can also be a component of a syndicated loan which is offered by a group of lenders who collaborate to provide funds to one borrower. When a loan modification or exchange transaction involves the addition of a delayed draw loan commitment with the same lender we believe it would not be appropriate to include the unfunded commitment amount of delayed draw term loan in the 10 test since the commitment is not funded on the modification date.

Year following the closing date.

Andrew Lipman Director Corporate Banking Crossfirst Bank Linkedin