Match each of the following terms with one of the definitions below: A. Revolving credit B. Bridge
Question:
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.
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Related Book For
Principles of Corporate Finance
ISBN: 978-1260013900
13th edition
Authors: Richard Brealey, Stewart Myers, Franklin Allen
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