Module 2 · Chapter 7

Utilisation and Repayment

Signing a facility agreement moves no money. This chapter follows the cash: how the borrower asks for a loan, what the lenders check each time, and how the money is repaid.

≈ 13 min read 8-question test

In this chapter

  • How the borrower asks for a loan, and when the money arrives
  • What the lenders check before every drawing, and why rollovers pass more easily
  • How each loan is repaid on time, early by choice or early by force

7.1Drawing and repaying in brief

Signing the Sunrise agreement gave Atlas Commitments, the lenders' binding promises to lend. It did not give Atlas any money. To get money, the borrower sends the agent a Utilisation Request, a one-page notice asking for a Loan. The market calls this a drawdown.

Before each drawing the lenders check that nothing has gone wrong. Each loan is then repaid on a fixed date. The borrower may also repay early, and a few events let the lenders demand early repayment.

Key point

A Utilisation Request cannot be withdrawn. The lenders start arranging the money as soon as it arrives, so the borrower is bound from that moment.

Also in this chapter

  1. How the borrower asks for a loan
  2. The test before every new loan
  3. Each facility has a drawing window
  4. Two ways the money comes home
  5. Repaying early by choice
  6. Repaying early by force
  7. Why the term loan is repaid last
  8. Your job

Preview

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