delayed draw term loan definition

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They are technically part of an underlying loan in most cases a first lien B term loan.

. A delayed draw term loan is a provision in a term loan that specifies when and how much the borrower receives. Delayed draw term loans DDTL are often used by large businesses that wish to purchase capital refinance debt or make acquisitions. DDTLs were used in bespoke arrangements by borrowers who wanted to get incremental committed term loan capacity often for future acquisitions or expansions but wanted to delay the incurrence of the additional debt and thus the additional.

Delayed Draw Term Loan Commitment Termination Date means the earliest to occur of i December 31 2008 ii the date the Delayed Draw Term Loan Commitments are permanently reduced to zero pursuant to Section 21 and iii the date of the termination of the Delayed. Definition of DELAYED DRAW TERM LOAN. A revolving loan comes with a replenishing feature where the borrower can withdraw amounts and repay to fully utilize the facility again.

The primary purpose for DDTLs is to fund additional. And WACHOVIA BANK NATIONAL ASSOCIATION as Co. For example at the 12.

The Delayed Draw Term Loan Commitments are not revolving credit commitments and the Borrowers shall not have the right to borrow repay and reborrow under Section. A delayed draw term loan allows for additional pre-defined funds to be drawn after the closing of the initial financing for a transaction. Everything you need to know about Delayed Draw Term Loan.

A delayed draw term loan is a special feature in a term loan that stipulates that the borrower can withdraw predefined amounts of the total pre-approved amount of a term loan at contractual times. All Delayed Draw Term Loan Fees shall be computed on the basis of a 365 day or 366 day as applicable year for the actual number of days elapsed and shall be paid in Dollars. The DDTL typically has specific time periods such as three six or time months for the periodic payments or the timing of the payments can be based on company milestones.

Provided however that on the Closing Date and for the two 2 Business Days following the Closing Date a Delayed Draw Term Loan borrowing shall only consist of Alternate Base Rate Loans. Unless the context requires otherwise i any definition of or reference to any agreement instrument or other document herein shall be construed as. Shall have the meaning assigned to such term in Section 201c.

The withdrawal periods are also determined in advance. A delayed draw term loan DDTL is a special feature in a term loan that disillusion admits a borrower withdraw predefined amounts of a total pre-approved loan amount. With a DDTL you can withdraw funds several times from a predetermined loan amount.

A Delayed Draw Term Loan borrowing may consist of Alternate Base Rate Loans or LIBOR Rate Loans or a combination thereof as the Borrower may request. The way a delayed draw loan works is that the lender and borrower agree to whats called a ticking fee representing a fee the borrower pays to the lender during the period of time the borrower can use the undrawn value of the loan. Shall have the meaning provided in Section 21c.

The loan is terminated by the borrower. Examples of Delayed Draw Term Loan in a sentence. A Delayed Draw Term Loan.

The withdrawal periodssuch as every three six or nine monthsare also unwavering in advance. A loan feature that lets the borrower withdraw amounts at predefined times. A delayed draw term loan requires that special provisions be added to the borrowing terms of a lending agreement.

Tranche A Term Loan means a Loan made pursuant to clause a of Section 201. Define Delayed Draw Term Loan Conditions. A delayed draw term loan is a special feature in a term loan that stipulates that the borrower can withdraw predefined amounts of the total pre-approved amount of a term loan at contractual times.

A draw period is the amount of time you have to withdraw funds. A special feature in a term loan that stipulates that the borrower can withdraw predefined amounts of the total pre-approved amount of a term loan at contractual times. However they can also be attached to unitranche financing.

Delayed Draw Term Loan. Define Delayed Draw Term LoanTerm Loans. Delayed Draw Term Loan Definition Definition Meaning Example Banking Business Terms Loan Basics.

The ticking fee is due until.

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