European option and Extension fee: Difference between pages

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1.
''Lending - borrowing - bank facilities - term - extension.''


An option which can be exercised only on its final maturity date.
An extension fee is an amount payable by a borrower in return for the extension of the term of a borrowing facility.




2.
:<span style="color:#4B0082">'''''Reduced extension fees - RS Group'''''</span>


More specifically,  a derivative that gives its holder the right to buy or to sell a certain amount of the underlying financial product on its date of expiry or for a short specific period (i.e. one day) just beforehand.
:"After consulting with existing banks and new potential lenders during the summer it was decided to seize the window of opportunity and launch an ‘amend and restatement’ RCF.  


:A Term Sheet was agreed with pricing the same as the previous deal apart from reduced extension fees and the benefit of the arrangement fee spread over a longer period."


Also known as a 'European-style' option.
:''The Treasurer online, 4 April 2023 - ACT Deals of the Year 2022: Loans below £750m winner.''
 




== See also ==
== See also ==
* [[American option]]
* [[Amended and restated]]
* [[Bermudan option]]
* [[Arrangement fee]]
* [[Option]]
* [[Back-end fee]]
* [[Bank facility]]
* [[Commitment fee]]
* [[Facility]]
* [[Finder's fee]]
* [[Fee]]
* [[Front-end fee]]
* [[Liquidity fee]]
* [[Management fee]]
* [[Non-utilisation fee]]
* [[Revolving credit facility]]  (RCF)
* [[Term]]
* [[Term sheet]]
* [[Utilisation fee]]


[[Category:The_business_context]]
[[Category:Corporate_finance]]
[[Category:Long_term_funding]]
[[Category:Identify_and_assess_risks]]
[[Category:Manage_risks]]
[[Category:Risk_frameworks]]
[[Category:Risk_reporting]]
[[Category:Financial_products_and_markets]]
[[Category:Financial_products_and_markets]]

Latest revision as of 23:12, 9 April 2023

Lending - borrowing - bank facilities - term - extension.

An extension fee is an amount payable by a borrower in return for the extension of the term of a borrowing facility.


Reduced extension fees - RS Group
"After consulting with existing banks and new potential lenders during the summer it was decided to seize the window of opportunity and launch an ‘amend and restatement’ RCF.
A Term Sheet was agreed with pricing the same as the previous deal apart from reduced extension fees and the benefit of the arrangement fee spread over a longer period."
The Treasurer online, 4 April 2023 - ACT Deals of the Year 2022: Loans below £750m winner.


See also