“Ticking fees” is an informal market term that is used to describe two different types of payments made from a borrower to lenders. … A ticking fee may also refer to a fee paid to a prospective syndicate member for a delay in closing the credit agreement.
Also question is, are bridge loans syndicated?
If the bridge loan is syndicated, the lead bank is usually appointed as the administrative agent and receives an additional administrative agent’s fee when the bridge loan funds, then typically annually thereafter for as long as the bridge loan is outstanding.
People also ask, how is ticking fee calculated?
The Borrower will pay to the Agent, for the benefit of each Lender with a Term Loan Commitment, a ticking fee (“Ticking Fee”) equal to 0.375% per annum multiplied by each such Lender’s Term Loan Commitment.
How much can you borrow on a bridge loan?
The maximum amount you can borrow with a bridge loan is usually 80% of the combined value of your current home and the home you want to buy, though each lender may have a different standard.
What is a bridge loan commitment?
Consequently, a bridge loan commitment allows the borrower to defer incurring the expense of raising permanent financing until it has better visibility on the likelihood of closing the acquisition. Once the conditions to closing the acquisition are satisfied, the borrower will be obligated to close promptly.
What is a ticking fee on a delayed draw term loan?
Delayed draw term loans include a “ticking fee” – a fee paid from the borrower to the lender. The fee amount accumulates on the portion of the undrawn loan until the loan is either fully used, terminated by the borrower, or the commitment period expires.
What is bridge debt?
Bridge debt is a flexible financing option that gives borrowers access to money to cover short-term expenses or to take advantage of a short term opportunity.
What is delayed drawdown?
Delayed Drawdown Loan: A loan that (a) would require the holder thereof to make one or more future advances to the Obligor under the governing instruments relating thereto, (b) specifies a maximum amount that can be borrowed on one or more fixed borrowing dates, and (c) does not permit the re – borrowing of any amount …
What is duration fee?
A duration fee is a periodic fee on the outstanding balance of the bridge loan, sometimes increasing the longer the bridge loan remains outstanding. … Fees are typically equal to an underwriting fee that would have been paid had the bridge loan been replaced in a bond offering.
What is the purpose of a delayed draw term loan?
A delayed draw term loan (DDTL) is a special feature in a term loan that lets a borrower withdraw predefined amounts of a total pre-approved loan amount. The withdrawal periods—such as every three, six, or nine months—are also determined in advance.
Who qualifies for a bridge loan?
To qualify for the bridging loan, you need 20% of the peak debt or $187,000 in cash or equity. You have $300,000 available in equity in your existing property so, in this example, you have enough to cover the 20% deposit to meet the requirements of the bridging loan.