Finance Deals & Syndicated Lending · glossary
What it really costs a lender to raise the money it lends. Normally EURIBOR stands in for it. If the benchmark fails, each lender charges its own certified cost of funds plus the margin. Clause 8.4 · Chapter 6
Explained in Chapter 6, Interest, Fees and the Cost of Money, of Finance Deals & Syndicated Lending.
The fallback applies if EURIBOR is unavailable, or if lenders holding more than 35% of the affected loans tell the agent that their cost of funds is above EURIBOR. For that interest period, each lender then charges its own certified cost of funds plus the margin. The agent or Atlas may also require up to 30 days of good-faith talks on a new basis for the rate.Read Chapter 6, Interest, Fees and the Cost of Money →
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