4.9.21.2 Computing Facility Fee on Total Commitment Amount

You can calculate the Facility Fee on the total commitment amount considering the revolving/ non revolving attributes of the tranche. You can define the Facility Fee component using the Basis Amount Tag TRANSFER_AVL available in the Fee Class screen and Fee Definition sub screen for Tranche product maintenance.

TRANSFER_AVL balance represents the sum of the Available Balance and Outstanding Balance for a given value date.

Note:

When you repay a drawdown for a Revolving tranche, the outstanding balance decreases and available balance increases; hence the TRANSFER_AVL amount remains the same. For non-revolving tranche, when you repay a drawdown the outstanding balance decreases but the available balance remains the same; hence the TRANSFER_AVL amount decreases.

For more details, refer the following sections:

• Specifying fee components for a borrower product in the chapter Defining Products for Loan Syndication.
• Maintaining a Fee Class in the chapter Processing Charges and Fees.