What is a bridge facility agreement?
A bridge to bond facility is a type of acquisition financing where the buyer requires the certainty of a fully committed financing package, but which is intended to be replaced in the future with a mid- to long-term financing in the form of high yield bonds.
What is a bridge credit agreement?
A bridge loan is a short-term loan used until a person or company secures permanent financing or removes an existing obligation. It allows the user to meet current obligations by providing immediate cash flow.
What happens if you default on a bridge loan?
Drawbacks of Bridge Loans If you default on your loan obligations, the bridge loan lender could foreclose on the house and leave you in even more financial distress than you were prior to taking the bridge loan. Plus, the foreclosure might leave you with no home.
How does a debt facility work?
A revolving debt facility provides flexibility, because your company can borrow as little or as much as it needs to fund operations. With a fixed loan, you receive the proceeds up front and pay interest on the total amount. As you draw against the loan, you decrease the available balance.
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 a bank debt facility?
Debt facility: Also called a ‘loan facility’, it is maximum amount a lender has permitted a borrower to borrow.
What is the benefit of a bridge loan?
The main benefit of bridge debt financing is flexibility. It provides borrowers with short term capital that allows them to meet any current expense obligations, quickly close on properties, complete renovations, or allow the Borrower to find new tenants for the building.
What is a senior bridge facility agreement?
The Bridge Facilities will be made available under a senior bridge facility agreement (the “Bridge Facility Agreement”) to be agreed between the parties on terms consistent with this Term Sheet and otherwise in form and substance satisfactory to the Bridge Borrower and the Arrangers.
How will the bridge facilities be made available?
The Bridge Facilities will be made available under a senior bridge facility agreement (the “Bridge Facility Agreement”) to be agreed between the parties on terms consistent with this Term Sheet and otherwise in form and substance satisfactory to the Bridge Borrower and the Arrangers. Other documentation will include:
What is debt bridge financing?
Debt Bridge Financing One option with bridge financing is for a company to take out a short-term, high-interest loan, known as a bridge loan. Companies who seek bridge financing through a bridge…
What is bridge loan financing for mergers and acquisitions?
Bridge loan financing for mergers and acquisitions involves high stakes for borrowers and lenders. Understanding the timing, structure, terms and range of outcomes under a bridge loan commitment is key to a successful financing negotiation and to analyzing the overall transaction economics.