How-to enter a Credit facility

New deal / Credit facility. Here the credit facility limit is entered and the committment fee connected to the undrawn amount. 

1. Open new deal / credit facility
2. Enter Legal entity and Counterparty for the Limit 
3. Select if the underlying drawdown are loans or deposits. Usually Loan
4. Enter currency and limit amount and dates.
5. Payment period and first payment roll date applies to the committment fee
6. In TAB Date settings selection day count convention and rolling behaviour if committment fees maturity or payment is on a bank holiday. 
7. In TAB bank account choose the bank account here the committment fee will be paid from and to
8. In TAB related deals click on search and in the popup enter the deal id on loans / deposits drawn under the Credit Facility. 
9. In TAB Committment fee set up the rule for when the committment fee should be applied (mandatory). The most common rule are x% of UnUtilizedAmount see print screen below. If a more advanced condition should be applied tick Condition and type the rule.  Note! for Loan faciltity enter Unutilized amount with minus sign
10. Click save and the committment fee transactions are created in TAB Transactions

Note, If the committment fee transactions needs to be updated enter the new condition and click on the icon recalculate fee in TAB transactions.

Utilization Fee

Please observe, if the credit facility has an utilization fee on the drawn amount you need to add a calculated fee on the Credit facility for the utilization fee.

If the utilization fee has different conditions, create one rule per condition.

Example:

RCF amount 1 000 MSEK

0,10% up to and equal to 33,33%

0,20% up to and equal to 66,66%

0,40% up to 100%

You tick the checkbox Condition and fill in as below. 

Note! for Loan facility enter Utilized amount with minus sign

Note! You need to change <= to >= (greater than) -333333333.33 for all rows with expressions except for the last row where you need to keep < (less than) in the expression.

FX Conversion rate on Loans that are linked to a credit facility:

The currency of the Credit facility is the price currency and the currency of the loan is the base currency for the FX Conversion rate.

Example:

Credit facility in EUR. 

Draw down in SEK. 

The FX Conversion rate should be entered as a SEK/EUR rate.

If the EUR/SEK rate is 11.40 the FX conversion is in this example should be 0,087719298245