Finance Deals & Syndicated Lending · glossary
The lender's reward on top of EURIBOR, for credit risk, tied-up capital and profit. It stays fixed while EURIBOR moves. Sunrise pays 3% on the term loan and 2% on the revolver. Definition: Margin · Chapter 6
Explained in Chapter 6, Interest, Fees and the Cost of Money, of Finance Deals & Syndicated Lending.
The two parts do different jobs. The benchmark, here EURIBOR, stands for what it costs a bank to raise the money. The margin is the bank's reward for the credit risk, for the capital the loan ties up and for profit. The margin is 3% a year on Facility A and 2% on Facility B.Read Chapter 6, Interest, Fees and the Cost of Money →
Chapter 1 and this glossary are open to everyone; the whole edition is free to read with a free account until 31 January, and it stays open to an account opened by then.Chapter 1 of Finance Deals & Syndicated Lending and this glossary are free to read; the rest of the edition is in the Library, at €12 a month or €79 for a Year Pass.
(a) in relation to a Facility A Loan, 3 per cent. per annum; and (b) in relation to a Facility B Loan, 2 per cent. per annum;Read the definition in the document →
Related terms
Where this term lives
This term is part of one complete fictional deal, with every document attached and a test after every chapter. Open Finance Deals & Syndicated Lending → · All terms A–Z →