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.
Parent topic: Specifying Tranche Fee Details