easy · Debt Capital Markets credit-ratings-risk
What happens if a borrower makes a voluntary prepayment during the year in relation to their end-of-year ECF sweep requirement?
- The borrower is penalized and must pay a higher sweep percentage at year-end.
- The voluntary payment is ignored and the full ECF sweep must still be made.
- The ECF sweep is automatically canceled for the next three years.
- The voluntary prepayment usually reduces the ECF sweep obligation dollar-for-dollar.
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