The extra funds may be used to acquire other businesses, to boost working capital, the money available to fund a company’s day-to-day operations, or to meet other needs. Accordion, free-reed portable musical instrument, consisting of a treble casing with external piano-style keys or buttons and a bass casing (usually with buttons) attached to opposite sides of a hand-operated bellows. A revolving underwriting facility (RUF) involves a group of underwriters who provide loans to borrowers unable to sell in the eurocurrency market. A secured note is backed by the borrower's assets. Gain the confidence you need to move up the ladder in a high powered corporate finance career path. What does according with expression mean? Accordion Feature: so called because it resembles the expanding musical instrument that shares its name, this is a feature in a Credit Agreement that allows the Borrower to increase the maximum commitment amount under a Revolver or to incur additional Term Loan debt under circumstances specified in the Credit Agreement. Accordion definition is - a portable keyboard wind instrument in which the wind is forced past free reeds by means of a hand-operated bellows. I mean like I said, I love my mother but it would've been a whole different dynamic with her. How to use accordion in a sentence. The offers that appear in this table are from partnerships from which Investopedia receives compensation. A piece of marketing literature that has been folded using at least two parallel creases such that there are at least three equally sized folds. All the expectations are negotiated and a pro forma plan is agreed upon by all parties. Made up of multiple items containing a head/title and body with expanded content, the accordion gives a chance for brands to get creative with design and animation. A line of credit (LOC) is an arrangement between a financial institution, usually a bank, and a customer that establishes the maximum amount a customer can borrow. It is used commonly in direct mail. Definitions by the largest Idiom Dictionary. A facility is a formal financial assistance program offered by a lending institution to help a company that requires operating capital. Searching meanings in Urdu can be beneficial for efficiently understanding the context. Taking time to rehash credit terms may be counterproductive. Companies typically purchase an accordion feature in anticipation of the need for more working capital for possible expansion opportunities. © 2012 Farlex, Inc. Financial Analyst Training. Accordion file definition is - a folder that is used for the organization and storage of documents and files and that has pleated sides which allow expansion of the folder. Farlex Financial Dictionary. A lender is able to somewhat mitigate the risk of the noted uncertainty by increasing a line of credit incrementally, with each increment made contingent on the future realization by the business of specific predetermined expectations, and an increased certainty of the aforementioned uncontrollable factors. An accordion insert is designed to compact as much information as possible into a small, easily deliverable space. Credit increases are optional, meaning that companies privy to this arrangement are not obligated to take on additional debt. The accordion feature creates a positive benefit for all parties involved in a loan agreement. The advent of the accordion is the subject of debate among researchers. How Companies use Revolving Loan Facilities, Revolving Underwriting Facility (RUF) Definition. A debt accordion, also known as an incremental facility, is a provision that allows a borrower to expand the maximum amount allowed on a line of credit (LOC), or to add a term loan to an existing credit agreement. I am using the jQuery accordion plugin to make an accordion of some data. Debt accordions will limit the total amount that can be borrowed and any new borrowing will be contingent on the company complying with its existing financial covenants. the principal amount under the agreement) or other liabilities with a lending financial institution. An accordion feature is an option that a company can buy that gives it the right to increase its line of credit (or similar type of liability) with a lender. accordion definition: 1. a box-shaped musical instrument consisting of a folded central part with a keyboard, played by…. A convertible debenture is a type of long-term debt issued by a company that can be converted into stock after a specified period. These types of loans generally have several conditions attached, including a maximum amount of total incremental debt the company can take on and a cap on the number of times the incremental facility may be used. Definitions by the largest Idiom Dictionary. How To Use An Accordion Feature in Commercial Loans. For instance, a company that’s a desirable acquisition target might be quickly snapped up by a competitor if funds are not readily available. Sample 1 Based on 1 documents Second, the terms for the entire line of credit, including all the incremental increases, are negotiated at the onset. Having folds or bends like the bellows of an accordion: accordion pleats; accordion blinds. A holder of share repurchase rights has the option to repurchase securities at a later date. Loan terms with an accordion feature are well suited for situations where a business shows great potential for accelerated growth, while at the same time there are indications of risks from uncertainty due to factors for which the business has no control. To keep things simple, best we can do is to restore border-radius on top and bottom of first and last panel.. Build in wins. By making additional credit increases contingent on the business exceeding pro forma expectations, the lenders focus more on the opportunity than the risk. What does according to you expression mean? This serves to attract more lenders to businesses seeking credit that would otherwise be deemed as too risky. Accordion Feature Definition An accordion feature is a type of corporate option or a clause in a loan (or a syndicated facility) agreement that allows a company to increase its line of credit (i.e. It is used commonly in direct mail. 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