What is a filo in finance?
USA June 3 2009. Borrowing the name of a well-known inventory management concept, FILO loans are loans that are “first-in, last-out” in funding and payment. This loan structure is growing in popularity with senior lenders and mezzanine lenders alike, and is seen in an increasing number of transactions.
What is a filo tranche?
FILO tranches are a first-in, last-out portion of the ABL facility. These first-drawn tranches provide incremental liquidity and carry a premium pricing over the traditional revolver. First used in the retail industry sector, their use has expanded to wholesalers/distributors and other ABL borrowers.
What does ABL mean in marketing?
But while cash-flow lending depends on the strength and stability of a company’s cash flow, some businesses may be eligible for additional borrowing based on the assets they own. For them, an alternative known as asset-based lending, or ABL, may be preferable.
What does ABL mean in banking?
Some of the most burdensome credit agreements are asset based-lending (ABL) credit agreements. The heart and soul of ABL lending is the collateral; thus, ABL credit agreements often provide for intense lender monitoring and supervision because the borrowing base is tied to “eligible” assets.
What is a pushdown Reserve?
Push Down Reserve a reserve established against the Tranche A Borrowing Base by the Administrative Agent at such time in an amount equal to the amount (if any) by which the aggregate principal amount of the Tranche B Term Loans outstanding at the applicable time of determination exceeds the Tranche B Borrowing Base at …
What is a first lien last out loan?
First Lien Last Out Loan: A Collateral Obligation that would be a Senior Secured Loan but for the fact that following a default such Collateral Obligation becomes subordinated to other SeniorSecured Loans of the same obligor and is not entitled to payments until such other Senior Secured Loans are paid in full.
What is an Overadvance?
Related Definitions Overadvance means a Credit Extension to the extent that, immediately after its having been made, Availability is less than zero. Sample 2.
What is a first in last out loan?
What is AI abbreviation?
Artificial intelligence Definition & Meaning | Dictionary.com.
What is the full form of ABL?
Abbreviation : ABL ABL – Atmospheric Boundary Layer. ABL – Allocated BaseLine. ABL – Adult Basic Learning. ABL – Advanced Business Language.
What is a sofa loan?
The SOFA product is exactly what it spells out to be: a non-formula over-advance in the form of a term or an interest-only loan that is secured but effectively non-collateralized as it is separate from the formulaic borrowing base.
Is capital an asset?
Capital is typically cash or liquid assets being held or obtained for expenditures. In a broader sense, the term may be expanded to include all of a company’s assets that have monetary value, such as its equipment, real estate, and inventory. But when it comes to budgeting, capital is cash flow.
What is a filo loan?
FILO Loan means, collectively, the Loans made by the FILO Lenders with FILO Commitments pursuant to Article 2. FILO Loan a U.S. Revolver Loan constituting a FILO Loan that is borrowed and deemed outstanding pursuant to Section 4.1.1 (a). FILO Loan means a Loan made pursuant to Section 2.01 (b).
What is capital in finance?
Capital is money that is used to generate income or make an investment. For example, the money you use to buy shares of a mutual fund is capital that you’re investing in the fund. Companies raise capital from investors by selling stocks and bonds and use the money to expand, make acquisitions, or otherwise build the business.
What is the aggregate principal amount of a filo loan?
The aggregate principal amount of the FILO Loan on the First Amendment Effective Date is $15,000,000. FILO Loan means the term loan made by the FILO Lenders pursuant to Section 2.01(d) hereof on the Effective Date in the original principal amount of $10,000,000.
Can a filo loan be converted to a LIBOR rate loan?
No Revolving Loan or FILO Loan may be made as or converted into a LIBOR Rate Loan until fifteen (15) days after the Closing Date.