Term Loan | Practical Law

Term Loan | Practical Law

Term Loan

Term Loan

Practical Law Glossary Item 4-382-3875 (Approx. 2 pages)

Glossary

Term Loan

A credit facility that allows the borrower to borrow a lump sum for a set period with an agreed schedule for repayment. In some transactions, the term loan commitment is structured to allow the borrower to draw the full amount of the term loan facility in multiple borrowings at different times. Once repaid, an amount borrowed under a term loan cannot subsequently be re-borrowed (unlike a revolving credit loan).