medium · Private Credit documentation-covenants-terms
A borrower uses a DDTL to fund an acquisition. The credit agreement specifies that the DDTL 'amortizes' at 5% per year.
When does this amortization typically begin?
- Retroactively from the day the company was founded
- Only if the company's EBITDA exceeds a certain floor
- Immediately upon the closing of the overall credit agreement
- Only after the funds are actually drawn
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