commitment fee


Also found in: Legal, Financial.
Related to commitment fee: Management fee, Upfront Fee

commitment fee

n
(Banking & Finance) a charge made by a bank, in addition to interest, to make a loan available to a potential borrower
Translations
commission d’engagement
References in periodicals archive ?
The Lender charged a no commitment fee and the loan has a yield maintenance penalty in the case of prepayment.
Commitment Fee percentage of the currently undrawn loan amount, the bidder offers, but no more than 1% respectively.
In addition, the company is charged a commitment fee of 50 basis points per annum on unused amounts of the revolving credit facility (subject to downward adjustment), along with a fronting fee of 25 basis points per annum, on the undrawn amount of all outstanding letters of credit.
The debt is priced at around 200 basis points, or two percentage points, above the London interbank offered rate and the unused portion will also carry a commitment fee, the banker said.
We are also pleased to have agreed a margin of 225 basis points above libor on this 100 per cent US$ facility, along with no commitment fee.
The Company is also obligated to pay a commitment fee on the unused portion of the revolving credit facility and pay letter of credit fees on the maximum amount available to be drawn under each letter of credit outstanding under the revolving credit facility.
5% for the commitment fee on unused capacity under the credit facility.
The terms of the credit facility include a 50 basis point commitment fee, an interest rate of LIBOR plus 3.
cost, reducing the annual commitment fee payable by [pounds sterling]160k.
The new Fit for Life membership package means that, by paying an initial commitment fee, you can now join from just pounds 20 per month, taking advantage of the fully equipped gym, cardiovascular suite, over 100 free classes, 25 metre pool, steam room, sauna and the new-look brasserie.
The commitment fee included both refundable and nonrefundable portions.
Upon closing, $7,500,000 was funded under this facility and a $1,000,000 commitment fee was paid to the lender.