Incremental equivalent debt (or “sidecar” facilities) uses the incremental debt capacity but is incurred as a separate facility outside the loan agreement, subject to customary conditions including an acceptable intercreditor agreement. The basic principle behind an uncommited incremental facility is simple: the borrower can request that one or more of the existing facilities be increased (an ‘accordion’ feature), or that a new facility be provided under its existing loan agree-ment at any point in the future. Incremental equivalent debt may consist of first lien secured notes, junior lien or unsecured loans and Here is the intro: there will be an obligation that the termination date of the accordion debt not be before the termination date, which applies to each initial maturity debt. Security is a major issue for lenders but taking and perfecting security varies across jurisdictions. As a result, liquidity has increased and borrowers have been successful in expanding the scope of and in adding new features to incremental loan facilities (also called an “accordion”). facility basket, general basket, acquired debt basket, capital lease/purchase money basket and other negotiated baskets • Ratio debt can be incurred as incremental/accordion alongside TLB or in separate instrument • Ratio debt can be incurred as incremental/accordion alongside TLB or in separate instrument as for US TLB Also known as an Incremental Facility. The Accordion, however, is not pre-committed financing. It is really just an advance agreement to share Collateral with additional Lenders in the future if the Borrower can find them on the agreed terms. Also known as an accordion feature. Incremental facilities and extension options Extension options are common in English law investment grade loans. A feature of some loan agreements that allows the borrower to add a new term loan, tranche, or increase the revolving credit loan commitments under an existing loan facility up to a specified amount under certain terms and conditions. One option that may be available to them is an accordion facility, otherwise known as an 'incremental' facility. Options to increase the amount of a facility (“incremental capacity” or “accordion… Fortunately, credit facilities typically contain incremental (or “accordion”) provisions that allow borrowers to finance add-on acquisitions under existing financing agreements. A common use of these incremental facilities is to finance an acquisition. Incremental loan facilities (also called an accordion) afford a borrower the ability to incur additional term loans or revolving loan commitments under an existing loan agreement if … Account: when used in secured bank land, this is not a bank account. Generally, an incremental facility allows a borrower to add another term … This credit note outlines some of the most important considerations about these incremental facilities, both from the borrower`s and the lender`s perspective. This briefing outlines the key characteristics of incremental facilities. Where it is available, an incremental facility allows the borrower to add financing neatly within its existing capital structure, without the need to facility, assuming it can find a willing lender and subject to certain terms and conditions. These twin pressures have given rise to the introduction of various innovations such as grower and builder (Permitted) baskets, incremental (accordion) facilities and cov-loose/lite facilities. Incremental facility clauses

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