Finance Deals & Syndicated Lending · glossary
A facility under which each lender must lend when asked, subject only to the agreement's conditions. An uncommitted line, such as an overdraft, can be withdrawn at any time. Only committed money can back a promise to pay a purchase price. Chapter 3
Explained in Chapter 3, Facilities and Their Flavours, of Finance Deals & Syndicated Lending.
A committed facility is the opposite bargain. From signing, each lender must lend when asked, subject only to the conditions in the agreement. That promise ties up the bank's regulatory capital even if no money moves, so the bank charges for it. Under clause 10.1, Atlas pays a commitment fee on every euro it could borrow but has not.Read Chapter 3, Facilities and Their Flavours →
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