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Private Credit Glossary

A provision allowing the borrower to increase the size of an existing facility (a permitted incremental facility) without a full refinancing, typically up to 1.0–1.5× EBITDA or a fixed dollar amount, subject to: (i) pro forma covenant compliance after the draw and any acquisition, (ii) Most Favored Nation (MFN) protection that raises the existing loan's spread to within 50 bps of any wider incremental pricing, and (iii) market-clearing pricing on the new tranche.

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