Credit Facility
A credit facility is a structured financing tool allowing a sponsor to access funds under a governing agreement with defined terms and eligibility conditions. In multifamily agency usage, a credit facility can operate at a portfolio level with post-closing features and multiple tranches or maturities.
- Where it applies
- Generally, not specific to New York
- When it comes up
- Structured origination; portfolio management; ongoing utilization
- Property types
- Multifamily portfolio finance; institutional sponsors
In practice
Credit facilities are operationally "platform products" - the legal agreement, monitoring covenants, collateral management, and reporting requirements are as important as initial pricing.
Related terms
tranchematurity ladderportfolio leverageborrowing base (concept)
Commercial Lending
- Acceleration Clause
- Bridge Loan
- Debt Service Coverage Ratio (DSCR)
- Net Operating Income (NOI)
- Pari Passu Loan
- SBA 504 Loan Program
General information, not legal, tax or financial advice.