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  answer-question

Principles of Corporate Finance

ISBN: 978-1260013900

13th edition

Authors: Richard Brealey, Stewart Myers, Franklin Allen

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