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. There is also generally a 30 to 60 day holiday after the underlying closes on which no fee is charged.
When the term ticking fee is used to refer to a fee paid to a lender under a syndicated credit agreement for the unused portion of the lender's commitment (also referred to as a “commitment fee” or an “unused commitment fee”), the advisory indicates that the ticking fee should be allocated in the same manner as ...
Summary. A fee imposed to compensate for lag time, effectively requiring the paying of interest on the cash portion of a deal during a certain commitment period, triggered by various conditions (often regulatory approval) and generally running until the deal's closing.
Commitment fees in India typically range from 0.25% to 2% of the unutilized portion of the loan or credit facility. The exact rate depends on factors such as the borrower's creditworthiness, loan amount, tenure, and market conditions.
Synonyms: obligation , responsibility , duty , charge , imperative, burden , onus. Sense: Noun: promise. Synonyms: promise , pledge , oath , vow , your word.
If you said you'd meet a friend at six, that's a commitment — show up or your friend will be mad. You also can speak of commitment as a quality. Staying after school for a study group shows your commitment to good grades.
Ticking Fee Percentage means (i) with respect to any Term Loan Lender, the percentage obtained by dividing (A) such Term Loan Lender's Term Loan Commitment by (B) the Aggregate Term Loan Commitment and (ii) with respect to any Revolving Loan Lender, the percentage obtained by dividing (A) such Revolving Loan Lender's ...
True interest cost (TIC) is the real (total or actual) cost of taking out a loan. True interest cost includes all ancillary fees and costs, such as finance charges, possible late fees, discount points, and prepaid interest, along with factors related to the time value of money (TMV).
Tick size is the minimum price change up or down of a trading instrument in a market. Its size for different assets traded varies. In U.S. markets, the tick size increment is in dollars or cents (or fractions thereof).
ticking of The only sound in the room was the loud ticking of the clock on the mantelpiece. He thought he heard ticking coming from the device. The general silence makes the smallest noise seem meaningful - the turning of pages, the ticking of a clock or the rustling of fabric.
“Ticking fee” provisions motivate buyers to move quickly to obtain antitrust clearance and close the transaction. A ticking fee requires a buyer to pay a set fee – often set as the interest on the purchase price – if the transaction hasn't closed by a date certain.
Delayed draw term loans include a “ticking fee” – a fee paid from the borrower to the lender. 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.
What Is the Purpose of a Commitment Fee? A commitment fee is term used in banking to describe a fee assessed by a lender to a borrower to compensate the lender for its commitment to pledge money to the borrower. Commitment fees often are associated with unused credit lines or undisbursed loans.
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.
Facility fees compensate the lender for making that money available and, unlike commitment fees, are typically changed on the total amount of the facility, not just the unused portion.
A ticking fee typically refers to a commitment fee on a term loan—ticking fees are frequently not charged on leveraged finance transactions, though this may be conditional on the facility being drawn within a certain number of days following completion.
Tenancy in common (TIC) is a legal arrangement in which two or more parties share ownership rights to real property. It comes with what might be a significant drawback, however: A TIC carries no rights of survivorship.
Before purchasing a stake in a TIC, consider these potential disadvantages. All co-owners are equally liable for debt and taxes. If one party fails to pay their portion of the mortgage or property taxes, all owners are held equally responsible for that amount.
Summary. This Ticking Fee clause increases the purchase price if the transaction fails to close or become effective by a certain date because of failure to obtain required antitrust (or other regulatory) clearance or approval by such date.
Definition: The fee levied by a creditor on the borrower for future or unused credit is called commitment fee. In the case of mortgage, the lender does not disburse the credit at one go to the builder. In most of the cases, the loan disbursal is linked to the project completion stage.
Glossary Term. What is an Exit Fee? An exit fee is a cost charged by a lender when a borrower fully repays a loan, typically at its maturity or upon early repayment.
Dear Self, I commit to follow through the entire process of getting to where you want to be. I commit to duly and dutifully put in the hard work it will take to get to your set goals. I commit to not give up especially when things get hard and tough because that Is the most important step of your developmental process.
the act of committing, pledging, or engaging oneself. a pledge or promise; obligation: We have made a commitment to pay our bills on time. dedication; allegiance: They have a sincere commitment to religion.