credit facility

Repayment of a revolving loan is achieved either by scheduled reductions in the total amount of the facility over time, or by all outstanding loans being repaid on the date of termination.
However, unlike a term loan, the revolving loan facility allows the borrower to drawdown, repay and re-draw loans advanced to it of the available capital during the term of the facility.
A revolving loan facility provides a borrower with a maximum aggregate amount of capital, available over a specified period of time.

That is, a credit facility allows companies to take out loans based on collateral that can be sold or substituted without having to alter the terms of the original loan contract.
Basically, making use of this credit option ensures that a company can remain liquid after it has sold a number of stock shares (which is why these loans are often associated with equity financing).
In July of 2011, the petroleum company Abraxus closed a deal on a credit facility with lender Societe Generale.
Just as consumers are cautioned against maxing out credit cards, as this may negatively affect their credit score and ability to take out loans in the future, so are businesses advised against maxing out their credit facilities.
A business will often make use of this credit option because it removes the hassle of reapplying for a loan each time additional money is needed.
The primary function of a credit facility is to allow a business to maintain a backup source of income.
Eligibility.The SCF is available to PRGT-eligible member countries facing an immediate or potential balance of payments need, where the country’s financing and adjustment needs are normally expected to be resolved within two years, thus establishing a sustainable macroeconomic position.
Access.Access to SCF financing is determined on a case-by-case basis, taking into account the country’s balance of payments need and strength of its economic program, and is guided by access norms.
However, the norms do not apply for outstanding concessional credit above 200 percent of quota and access will then be guided by consideration of the access limit of 300 percent of quota, expectation of future need for Fund support, and the repayment schedule.
Norms are set at 120 percent of quota per 18 month arrangement, or 75 percent of quota if the country’s total concessional credit outstanding is 100 percent of quota or above (these norms are prorated for arrangements with duration shorter or longer than 18 months).
The SCF provides high access, carries a lower interest rate, can be used on a precautionary basis, and places emphasis on the country’s poverty reduction and growth objectives.
The Rapid Credit Facility (RCF) provides rapid concessional financial assistance with limited conditionality to low-income countries (LICs) facing an urgent balance of payments need.
The facility can flexibly accommodate both one-off disbursements to LICs facing an urgent financing need of limited duration (in particular under the shocks window), and repeated disbursements over a limited number of years, including in cases where the RCF facilitates eventual transition to an ECF arrangement.
The RCF provides low access, rapid, and concessional financial assistance to LICs facing an urgent balance of payments need, without the need for program-based conditionality.
Outright disbursements under the RCF are available to PRGT-eligible members that face an urgent balance of payments need, and where a full-fledged economic program is either not necessary (for instance because of the transitory and limited nature of the shock) or not feasible (for instance because of capacity constraints or domestic fragilities).
Repeated RCF disbursements are possible if the balance of payments need is caused by an exogenous shock or the country has established a track record of adequate macroeconomic policies.
Access to RCF financing is determined on a case-by-case basis, taking into account the country’s balance of payments need and strength of macroeconomic policies.
Rogers Wireless maintains a $700 million bank credit facility maturing in 2010 that had $20 million drawn at the end of the first quarter.
BellSouth): AT&T — Issuer Default Rating (IDR) ‘A’; — Senior unsecured ‘A’; — Bank credit facility ‘A’; — Commercial paper ‘F1’.
These loans can be many different types, depending upon the needs of the company, and can vary from letters of credit to term loans, and can be committed or uncommitted.
A variety of different loans that a company brings on to meet its financing needs.
A key consideration for any company is how it will incorporate debt in its capital structure, at the same time it must consider the parameters of its equity financing.
The company must look at its capital structure as a whole, determining how much capital it needs immediately and over time, and the combination of equity and debt that it will use to fulfill those requirements.
Companies frequently implement a credit facility in conjunction with closing a round of equity financing (raising money by selling shares of its stock).
Specific types of credit facilities are: revolving credit, term loans, committed facilities, letters of credit and most retail credit accounts.
While there are several reasons why a company would establish some type of credit facility, the strategy is usually a means of creating a backup source of revenue for various projects.
For example, if the company cannot pay on the bond mentioned in the article, there would probably be a provision in each of the components of the credit facility that would trigger cross default if payment on the bond is accelerated.
Along with establishing the bond issue, the corporation arranges a standby line of credit or possibly a term loan to function as a backup in the event that the project fails to generate enough revenue to honor the terms of the bond.
Depending on the financial stability of the company, it may be possible to establish a line of credit as the credit facility, allowing the company to only draw on the balance of that line of credit when and as needed.
A credit facility is a type of loan or debt strategy that is often used in a business or corporate setting.
It is even possible to create a facility that includes a combination of revolving credit solutions, short-term loans, and long-term loans.
Credit facilities can involve several different forms of credit, ranging from revolving credit to a line of credit that is available for the company as a source of standby funding.
One of the benefits of a credit facility is that it does not have to be associated with one project.
Pirelli, on November 30 2010, signed a new revolving line of credit for 1.2 billion euros with a duration of five years which replace previous lines of credit worth a total of 1.475 billion euros, launched in 2005 and 2007 with maturities in 2011 and 2012.
Over the past fifteen years, Meridian Finance Group has helped hundreds of exporters increase their international sales using foreign buyer credit facilities, cross-border equipment financing, export credit insurance, and other trade finance tools.
Meridian Finance Group has over fifteen years of experience in middle-market trade finance, successfully arranging buyer credit facilities for manufacturers, distributors, government agencies, and other importers located in emerging foreign markets.
The most expeditious and economical way to implement revolving trade finance for a foreign buyer is for each supplier selling to that buyer to extend open-account credit terms using their own export credit insurance policies.
In such circumstances Meridian can arrange a trade finance facility under which the buyer selects payables for the lender to settle early with its suppliers, freeing up supplier credit lines so the buyer can place new orders.
Please note that when arranging trade finance facilities we have a preference for situations in which the buyer and the suppliers already have a history of doing business together, whether on open-account credit terms or otherwise.
Meridian evaluates the creditworthiness of foreign buyers for trade finance based on information including, but not limited to, three years of annual reports or audited financial statements, interim financials, credit reports, bank and trade references, searches of public records, market research, and other due diligence.
Meridian arranges trade finance for creditworthy buyers in emerging foreign markets with interest rates and payment terms more favorable than those available from lenders in their own countries or from their suppliers in the USA or other countries.
When a company in another country needs trade finance for its purchases from multiple suppliers, however, it may not be practical or even possible for every supplier to obtain insurance coverage or offer open-account export credit terms.
An alternative solution is to arrange a trade finance facility for the buyer under which a third-party lender (a) pays the suppliers when the goods are exported and then (b) extends more favorable cross-border payment terms to the buyer.
International sales of all kinds of products and services are eligible for trade finance, as long as the buyer is a well-established creditworthy company located in one of the many emerging foreign markets where Meridian does business.
In most cases this information enables us to gauge the feasibility of arranging trade finance for the buyer, at which point we issue an initial credit proposal or terms sheet.
Most of the foreign buyer credit facilities arranged by Meridian provide between $1,000,000 and $10,000,000 of trade finance.
The new accounts receivable securitization facility provides for up to $200 million in standby letters of credit and working capital draws, subject to certain limitations, secured by trade receivables.  The borrower under the accounts receivable securitization facility is a special purpose, indirect subsidiary of Alpha Natural Resources, Inc.  Funding under the accounts receivable securitization facility is expected to be available until September 2018.  GE Capital, Corporate Finance is serving as administrative agent, a lender and a letter of credit lender.
"The amendment of the senior secured credit facility and the establishment of the new accounts receivable facility solidify our current robust liquidity position while improving our future financial flexibility.  These transactions allow us to maintain a liquidity-neutral facility position through June 2016 while extending significant liquidity well into 2017," said Frank Wood, Alpha’s chief financial officer.
The amended senior secured credit facility will have total availability of $894 million, reflecting a reduction of 25% for commitments that have been extended through September 30, 2017, with an increased interest rate on borrowings.  Of this amount, $276 million represents non-extending commitments, which will expire on the previous facility maturity date of June 30, 2016.  Thereafter, the total availability under the facility will be $618 million.
Factors that could cause the actual results to differ materially from those in forward-looking statements include, the impossibility to satisfy the conditions precedents to the execution and delivery of the Revolving Credit Facility, the impossibility to acquire royalties and to fund precious metal streams, gold prices, Osisko’s royalty interest, access to skilled consultants, results of mining operation, exploration and development activities for properties with respect to which Osisko holds a royalty, uninsured risks, regulatory changes, defects in title, availability of personnel, materials and equipment, timeliness of government or court approvals, actual performance of facilities, equipment and processes relative to specifications and expectations, unanticipated environmental impacts on operations, market prices, continued availability of capital and financing and general economic, market or business conditions.
During that time, First Reserve has developed a preeminent franchise by utilizing its broad base of industry knowledge and strategic relationships.
For 30 years, First Reserve has been focused on making investments exclusively across the energy spectrum.
Airbus Group N.V. (stock exchange symbol: AIR) has successfully signed an amended and extended € 3 billion revolving syndicated credit facility, in a move designed to benefit from the current favourable loan market conditions.
In 2013, the Group – comprising Airbus, Airbus Defence and Space and Airbus Helicopters – generated revenues of € 57.6 billion (restated) and employed a workforce of around 139,000 (restated).
The Multiple Buyer Credit Facility (MBCF) will be offered through loans extended to financial intermediaries (commercial banks, leasing companies or export credit agencies) for the purposes of providing buyer credits to numerous importers in a given Member Country.
Company Debt Coupon Issuance Date Maturity Date Document Links ITC Holdings Corp.
$400M Revolving Credit Agreement L+125 3/28/2014 3/28/2019 Click Here ITC Holdings Corp.
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23. In the event of non-payment / short payment of the Minimum Amount Due for more than three successive months or 90 days whichever is earlier, the Flexipay shall be closed on 91st day and the principal outstanding along with the outstanding interest accrued till the date of such closure shall be debited to the Credit Card Account and appear in the subsequent monthly statement.
26. At the time of cancellation of Flexipay, if the SBI Cardholders account is revolving, then the above mentioned amount (Flexipay Principal amount + Cancellation fee) will be added to the revolving balance and will attract a standard credit card interest charges.
25. The SBI Cardholder can make request for cancellation of Flexipay by calling the SBI Card helpline.  On receipt of this request, the outstanding Flexipay principal amount is moved back to SBI Cardholders retail balance and a cancellation fee of 3% post 45 days shall be levied on the same.
13. The transfer of retail purchase transaction(s) to Flexipay will only be allowed if Current Balance Amount (Billed and Unbilled) + Interest + Processing Fee is less than the Credit Limit available at the time of transfer to the Flexipay.
1. The Flexipay facility is open to all residents of India holding a valid and current SBI credit card issued by SBI Cards and Payment Services Private Limited (“SBICPSL”) with Minimum Amount Due (“MAD”) as reflected in the last Statement of Account (“ SOA”) paid in full.
14. It is stipulated, if the SBI credit cardholder is revolving at the time of request for transfer of retail purchase to Flexipay, he will continue to be charged the standard credit card charge of 3.35% on his revolving balance till the time the transfer to Flexipay actually takes place within the Term defined hereinabove.
15. Upon Flexipay approval, the SBI Credit Cardholder credit limit shall be blocked upto Flexipay Principal Amount + Interest + Processing Fee.

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