Tony Williams,  Loan Technologist

Fee earned by the Agent/Co-Agent banks for managing a hank syndicate, typically payable at closing.
 

The reporting system which identifies critical pieces of information and analysis which management utilizes to monitor the status of a particular process, product or
operating area.

The spread between the cost of funds rate (or base rate) and the effective rate (All-In-Rate) charged to the borrower.

A listing of deals/facilities/loans being offered for sale by various lenders.

Identifies the mnemonic and name of a particular market where certain instruments are traded (i.e. NYSE, New York Stock Exchange; AMEX, American Stock
Exchange).
 

A match funded loan consists of the bank offsetting an asset (e.g. a loan) with a liability of like maturity, repricing characteristics, and/or currency in order to reduce or eliminate interest rate or currency risk. Match funded loans are based on cost of funds rates that are repriced according to an established schedule (e.g. 30 day CD, 2 month LIBOR, etc.). Under a match funded loan, the necessary funds arc raised by the lender in the marketplace to accommodate a specific loan
request. (See also Break-Funding)
 

With respect to loan trading, a loan that is purchased in the secondary market based on a firm commitment from an investor to immediately purchase the same
loan from the bank.

The date upon which a note, loan, or other negotiable instrument becomes due and payable. For a facility, the maturity' date is the date by which all drawings under the facility must be repaid. For a demand loan, the maturity date is the date on which the bank calls the loan.
 

Mezzanine financing consists of all layers of financing between senior debt and equity investments. These include all unsecured loans and debt securities where
payment is subordinated, loans or debt securities secured by liens inferior to those of senior debt, fully subordinated debt, and any limited-life preferred stock with
significant debt characteristics held by the reporting bank holding company organization.
 

Accounts affected by transactions where money enters the bank

Pricing option based on a daily market rate as defined in the credit agreement, typically with some spread added to that base rate.

Accounts affected by transactions where money leaves the bank.

1. The situation resulting when the interest rate or fee being passed on to an investor exceeds the interest or fee being collected by the bank from the borrower.

2. A backvalued adjustment that corrects an overaccrual.
 

A loan on which the bank is no longer accruing additional interest or fees because the borrower has not paid on time. Generally, loans arc placed on non-accrual status when principal payments are more than ninety days past due.

Accounts affected by non-cash transactions.

A loan where the principal is not repaid in regularly scheduled payments; rather, it is repaid in one lump sum at maturity. Scheduled interest payments, however, are made during the intervening periods. (See also Balloon Loan)

Term meaning "our account with you" designating an account maintained by a bank with a foreign correspondent. Nostro Accounts denominated in the currency
of the country in which the funds are held.
 

The price offered by an entity wishing to sell an asset, In the case of loan sales, the offer price is the pricing offered by a seller to prospective investors for the purchase of a deal/facility/loan. It may include an upfront fee, interest rates, and commitment fees at full pricing (as per the credit agreement), discounted pricing (the discount being the skim to the selling bank), or premium pricing.
 

A loan made to a borrower outside of an established credit facility.

The deals/facilities/loans that the lending bank is offering for sale in the market, including the amount available and the offer pricing.

See Offering List.

I. Fee charged to the borrower in connection with originating, refinancing, or restructuring a loan. This fee is most commonly associated with the origination of
term loans.

2. See also Syndication Fee.
 

See Lending Area.

The current amount borrowed against an existing facility.

Abbreviation for Platform Assistant.

Abbreviation for per annum.

The legal entity that has bought a share of the facility through a participation agreement from a primary member subsequent to the deal's closing. Participants are
typically not known to the borrower and have limited voting rights with respect to changes in the credit agreement. (Different from Assignee) (See also Participation)
 

The transfer of an interest in a loan, note, or commitment from one party to another which does not create any direct relationship between the purchasing investor and the borrower.
 

The legal document containing the terms and conditions negotiated between the seller of a deal/facility/loan and the participant purchasing a portion of that
deal/facility/loan.

When a match-funded loan becomes past due, the outstanding balance cannot continue to be match-funded. As a result, the amount due is then tied to the daily
index rate.
 

A loan whose principal, interest, or fee outstandings have not been paid on their due date.

A commission that the borrower pays to the bank for successfully placing a specified amount of the borrower's debt with a private investor.
 

The personnel within the bank that handle the daily client contact for operational matters related to the processing of deals, facilities, loans, accounts, etc. These
personnel are the main customer contact for all transactions and inquiries (e.g. borrowings, payments, error resolution, etc.).

The upfront fee charged to the borrower at the closing of a deal/facility calculated as a percentage of the total deal/facility.
 

As used in the context of trading and portfolio management, the portfolio is the inventory of financial instruments currently being held by the bank. The bank adjusts its portfolio over time to reflect changes in various factors such as the hank's strategy, market conditions, regulatory changes, etc. The frequency and severity of the changes in these factors determine how often and to what extent the portfolio is altered.

Fees that continue to accrue (or start to accrue) after the expiration of a facility until all outstanding balances are repaid or the loan is charged off.

A payment of principal, interest, or fee outstandings which takes place prior to its scheduled (hie date. In cases where the loan is match funded, a prepayment of
principal may result in a break-funding penalty for the borrower.
 

Pricing refers to the formula used to calculate interest, fees or commissions on a loan, facility, or SBLC. It typically consists of a rate plus a spread (e.g. BTCO
Prime + .2%).

Any of the various interest rate options available under a credit agreement plus the respective spread (e.g. I month LIBOR + .25%).
 

See Primary Member

Any one of the banks that commit to financing a deal and sign the credit agreement as part of a bank syndicate. Through negotiations, these banks can influence the deal's structure and have full voting rights regarding all aspects of the credit agreement after closing.
 

A floating rate set daily by the bank called the "Prime Rate." A spread must be added to determine the All-In-Rate.

Identifies the person notified when a transaction is completed or a particular process is performed (e.g. notify Mary Jones, Relationship Manager, when collateral is no longer sufficient to support the loan).
 

The person in the distribution area who works with origination to structure a deal that will be saleable to investors. The product manager exchanges information
with the salespeople and traders in an effort to successfully distribute a deal/facility/loan and interfaces with relationship managers regarding market feedback (i.e.
pricing, prospective investors, questions, etc.).
 

An internal bank designation for a specific group of people or products to which relevant revenues and expenses will be allocated.

A legal instrument signed by the borrower evidencing a loan from the bank. The promissory note establishes the terms and conditions for repayment of the
principal as well as payment of the corresponding interest and fees.
 

A legal entity with which the bank has not yet had a business relationship. The bank may choose, however, to record information on these potential customers.
 

An internal bank code used to classify the underlying business transaction supported by a particular facility. By segregating credit facilities by their purpose codes,
the bank can ascertain its risk exposure to certain types of business activities (e.g. industrial revenue bonds, margin guarantees, etc.).