Commitment Fee

Private Credit Glossary

Fee paid on the undrawn portion of a revolving or delayed-draw facility, typically 25–50 bps annually. Compensates the lender for the cost of holding the commitment available (regulatory capital, liquidity earmark) without earning the full coupon. On delayed-draw facilities (DDTLs) the equivalent fee is called a ticking fee and runs higher (50–100 bps) because the draw is more likely.

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