What is a Swingline Lender?

November 25, 2020 Off By idswater

What is a Swingline Lender?

A swingline facility is a sub-limit of a syndicated revolving credit facility whereby a single lender, known as a swingline lender, makes a short term (operating not more than five days) loan, in smaller amounts, on shorter notice and with a higher interest rate than is otherwise available for loans under the …

What is Swingline sublimit?

Swingline Sublimit means an amount equal to the lesser of (a) $15,000,000 and (b) the Revolving Facility. Swingline Sublimit means an amount equal to the lesser of (a) $25,000,000 and (b) the Aggregate Revolving Commitments. The Swingline Sublimit is part of, and not in addition to, the Aggregate Revolving Commitments.

What is a swing line commitment?

Swing Line Commitment means the obligation of the Swing Line Lender to make Swing Line Loans up to a maximum principal amount of $5,000,000 at any one time outstanding.

What is a swing line advance?

Swing Line Advances means a Prime Rate Advance, a US Base Rate Advance or the issuance of a Letter of Credit (in the latter case, subject to prior notice as required by the Swing Line Lender in accordance with its normal practice) under the Revolving Facility by the Swing Line Lender to the Borrower in an aggregate …

What is a Swingline loan used for?

A swingline loan is a short-term loan made by financial institutions that provides businesses with access to funds to cover debt commitments. A swingline loan can be a sub-limit of an existing credit facility or a syndicated credit line, which is financing offered by a group of lenders.

What is a fronting loan?

A fronting loanA loan made between a parent company and its subsidiary through a financial intermediary such as a bank. is a loan made between a parent company and its subsidiary through a financial intermediary such as a bank. The bank then lends the money to the subsidiary.

What is the purpose of Swingline loans?

What is a Swingline limit?

A swingline facility is a sub-limit of a syndicated revolving credit loan whereby a lender makes a short term (operating not more than five days) loan, in smaller amounts, on shorter notice, and with a higher interest rate than is otherwise available for revolving credit loans.

What is a fronting exposure?

Fronting exposures are those that. represent a BHC’s exposure to fund certain obligations (e.g., swinglines or letters of credit) on. behalf of other participant lenders. For such exposures, the BHC should report the new Fronting. Exposure option in the Credit Facility Type field.

What is a revolving loan?

A revolving loan facility is a form of credit issued by a financial institution that provides the borrower with the ability to draw down or withdraw, repay, and withdraw again. A revolving loan is considered a flexible financing tool due to its repayment and re-borrowing accommodations.

Why would a company choose to do a fronting loan?

The advantage of using fronting loans as a way to lend money, rather than the parent lending the money directly to the subsidiary, is that the parent can gain some tax benefits and bypass local laws that restrict the amount of funds that can be transferred abroad.

What is a fronting line?

Related Content. In the context of syndicated credit facilities, a lender which issues a letter of credit, bond or guarantee on behalf of the lenders in the syndicate.

What is swing loan financing?

swing loan. Definition. Short-term financing which is expected to be paid back relatively quickly, such as by a subsequent longer-term loan. also called bridge loan or bridge financing.

What is a Swingline facility?

Swingline Facility. A line of credit or other loan that a bank extends to a company to help pay down its debt. A swingline facility is most useful when a company is having difficulty with its debt service. See also: Loan consolidation.

What is a swing loan?

swing loan. A short term loan that allows a homeowner to purchase a new home before selling the personal residence.