An accordion feature allows a company to increase its line of credit with a lender by buying it. The accordion feature is purchased by companies in order to have more working capital for possible expansion.
What does accordion mean in finance?
If certain conditions are met such as pro forma compliance with a leverage test, the facility’s lender can lend additional debt.
What is an accordion in a credit agreement?
A debt accordion, also known as anIncremental Facility, is a provision that allows a borrower to expand the maximum amount allowed on a line of credit, or to add a term loan to an existing credit agreement.
What is an accordion legal term?
An accordion feature is a clause in a loan agreement that allows a company to increase their line of credit.
What is an accordion increase?
A proposed increase in Commitments for the Facility is referred to as an Accordion Increase.
What are the benefits of the accordion?
The accordion is one of the few instruments that can teach harmony, melody, and rhythm at the same time.
What are the three 3 key financial terms?
The income statement is one of the three core financial statements.
What is the accordion fee?
Accordion Fee is the amount of the increase in the Revolving Loan Commitment of Fortress.
What are the three types of credit agreements?
A credit agreement can be any of the following: a credit facility, a credit transaction, a credit guarantee, or an ancillary credit agreement. There are examples for each of the types of credit agreement below.
What is a credit agreement called?
A loan agreement is what it is. There is a main document for a loan financing. The terms of the loan are set out in this document.
Why is it called an accordion?
The accordion was given the name by Cyrillus Damian of Vienna due to the addition of buttons on the left side. “Accord” is a French word. All instruments of this type were named after the accordion.
What are the 3 main parts of an accordion?
The accordion has a piano or button keyboard on the right hand side, as well as bellows and 120 buttons on the left hand side.
What is the most common type of accordion?
The diatonic is one of the most common accordions in the Americas. It is small and has button keys. If you push or pull the bellows, it will be smaller because there are two notes per button. It’s popular in a lot of different things.
What is the accordion fee?
Accordion Fee is the amount of the increase in the Revolving Loan Commitment of Fortress.
What is the accordion feature of a syndicated loan?
If there is no event of default, the option can be included in the syndicated facility agreement.
What is the difference between committed and uncommitted accordion?
The viability of the accordion can be determined by whether or not the lender is required to make it available absent a failure to satisfy any specific conditions of the accordion.
What is asset finance terminology?
What’s the difference between asset financing and other types of financing? Assets that can be used for asset financing include short-term investments, inventory and accounts receivable. The lender needs a security interest in the assets to approve the funds being borrowed.