9.2.1 Modifying Tranche Principal

You can use the Value Dated Amendments screen to:

• Increase the tranche principal
  When increasing the tranche principal, the system checks for the following:

  • The increase does not allow the sum of all tranches (including the increased amount) under the linked facility to exceed the Total Facility amount.
  • The increase is not more than the maximum amount allowed for a tranche. This amount is specified at the facility level.
• Decrease the Tranche Principal
  When decreasing the tranche principal, the system checks for the following:

  • The decrease does not result in the principal being less than the sum of all outstanding drawdowns linked to the tranche.
  • The decrease is not less than the minimum amount allowed for a tranche. This amount is specified at the facility level.

To change the principal, specify the following:

• Change in Principal

  Specify the amount by which you want to increase or decrease the tranche principal. If the tranche currency is different from the local currency of the branch, the system displays its equivalent in the local currency.

  A change in tranche principal results in recalculation of the Utilization and Non-Utilization Fee. It also alter the Non-Utilized amount under the tranche. An increase in the principal allows you to process new drawdowns under the tranche to the extent of the increased amount. Note that the system considers the margin rates maintained for the participants while calculating the interest due for the participants.