Accordion Facility Fee Clause Samples
An Accordion Facility Fee clause defines the fee charged to a borrower when they exercise an option to increase the total available credit under a loan agreement, typically through an 'accordion' or incremental facility. This fee is usually calculated as a percentage of the additional amount borrowed and is payable at the time the expansion is utilized. The core function of this clause is to compensate the lender for the increased commitment and administrative work associated with expanding the credit facility, while also providing a clear cost structure for the borrower if they choose to access additional funds.
Accordion Facility Fee. The Borrower agrees to pay to the Administrative Agent for its own account, an annual Accordion Facility fee equal to 0.10% of the Accordion Facility. The Accordion Facility fee shall be payable annually in arrears on the last day of December of each year and on the Commitment Termination Date, commencing on the first such date after the First Amendment Closing Date; provided further, that any Accordion Facility fees accruing after the Commitment Termination Date shall be payable on demand.
Accordion Facility Fee. In connection with each Accordion Request, Borrower shall pay a nonrefundable fee (the “Accordion Fee”) to Administrative Agent, for the benefit of each Lender participating in each Accordion Request in an amount to be agreed upon in connection with such Accordion Request. The Accordion Fee shall be deemed fully earned when paid, regardless of whether or not any Loan is disbursed in whole or in part.