Revolver (Revolving Credit Facility)
Private Credit glossary · Loan Structures & Instruments
Definition
A committed line of credit a borrower may draw and repay during the facility's term, typically with a commitment fee on the undrawn balance.
Revolver (Revolving Credit Facility) in plain English
A revolver is basically a business credit card in loan form: the lender promises a maximum amount the company can borrow, and the company can take money out, pay it back, and take it out again, over and over, for as long as the deal lasts. This flexibility is valuable because a business never knows exactly when it'll need cash, so it pays a small "commitment fee" on the unused portion, like paying a little just to keep the credit card active even in months you don't swipe it. The word "facility" is just finance-speak for an arranged borrowing setup, and "committed" means the lender is legally on the hook to hand over the cash if the company asks.
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