What is RCF Cleandown?

What is RCF Cleandown?

A provision applicable to a working capital or overdraft facility to ensure that the borrower is not using that facility as long-term debt.

What does LMA stand for in finance?

Loan Management Account (LMA): Flexible Line of Credit Account.

What is a loan market meaning?

Meaning of loan market in English loan market. noun [ C ] FINANCE. the market where financial organizations provide loans to borrowers and sometimes repackage them (= sell them on to investors): consumer/domestic/home loan market The consumer loan market has been the fastest growing sector in recent years.

What does syndicating a loan mean?

Loan syndication is the process of involving a group of lenders in funding various portions of a loan for a single borrower. Loan syndication most often occurs when a borrower requires an amount too large for a single lender to provide or when the loan is outside the scope of a lender’s risk exposure levels.

What is Cleandown?

past participle. cleaned down. DEFINITIONS1. to remove the dirt from something, especially from an upright surface. Clean down all the timbers before you spray them.

How are leveraged loans traded?

Leveraged loans are issued to finance leveraged buyouts (LBOs), and most of the loans are traded in the secondary market. The leveraged loan index tracks the prices of the loans.

What is the difference between consortium and syndication?

A loan syndication usually occurs when multiple banks lend money to a borrower all at the same time and for the same purpose. In the financial world, a consortium refers to several lending institutions that group together to jointly finance a single borrower.

What is clean down in finance?

A senior facilities agreement for a leveraged acquisition finance transaction often includes a ‘clean down’ obligation which requires the original borrower to ensure that, for a certain number of consecutive days each year, the aggregate amount of all revolving facility loans is reduced to zero or another pre-agreed …

What is the difference between EBITDA and Debt/EBITDA?

In other words, they see EBITDA as a cleaner representation of the real cash flows available to pay off debt. Analysts like the debt/EBITDA ratio because it is easy to calculate. Debt can be found on the balance sheet and EBITDA can be calculated from the income statement.

What is the EBITDA-to-sales ratio and enterprise multiple?

The EBITDA-to-sales ratio is a financial metric used to assess a company’s profitability by comparing its revenue with its operating income before interest, taxes, depreciation, and amortization. Enterprise multiple is a measure (the company’s enterprise value divided by its EBITDA) used to calculate the value of a company.

What does a high debt/EBITDA ratio indicate?

Debt/EBITDA measures a company’s ability to pay off its incurred debt, and a higher ratio result could indicate a company with a too-heavy debt load. Banks often include a certain debt/EBITDA target in the covenants for business loans, and a company must maintain this agreed-upon level or else risk having…

How do you calculate EBITDA from the income statement?

Divide this by the company’s EBITDA. You can calculate EBITDA using data from the company’s income statement. The standard method to calculate EBITDA is to start with operating profit, also called earnings before interest and taxes (EBIT), and then add back depreciation and amortization.