23. Bank loans (S25.3) Match each of the following terms with one of the definitions below. A....
Question:
23. Bank loans (S25.3) Match each of the following terms with one of the definitions below.
A. Revolving credit B. Bridge loan C. Term loan D. Syndicated loan E. Commitment fee F. Maintenance covenant
a. Requirement that borrower keeps in the future to a certain condition—for example, a minimum debt ratio.
b. Rather like a corporate credit card, it allows the company to choose to borrow up to a certain limit and to repay.
c. Loan that is parceled out among a group of banks.
d. Longer term bank loan with a fixed maturity.
e. Fee paid on unused portion of a revolving credit.
f. Short-term bank loan taken out until more permanent funding can be arranged.
Step by Step Answer:
Principles Of Corporate Finance
ISBN: 9781264080946
14th Edition
Authors: Richard Brealey, Stewart Myers, Franklin Allen, Alex Edmans