The Client Asks: How Do We Exercise an Incremental Facility?

Summary

This practice note provides a step-by-step guide to determine whether a borrower has access to an incremental facility or an accordion and how it may be exercised. If so, the borrower will additionally want to know the maximum amount that may be drawn, the conditions to making such a request, the terms of the new loans, and any required notice provisions. The steps below show you how to conduct this analysis and highlight what documents to review and what provisions to focus on.