Revolving Credit Facility
A committed line of credit that the borrower can draw and repay multiple times over the facility's tenor, paying a commitment fee on undrawn capacity and a drawn-balance interest rate. In an LBO capital stack, the revolver typically sits at the top of the priority ladder (first-priority secured but undrawn at close), with a $25M-$200M capacity sized to cover working-capital fluctuations and bolt-on M&A. The revolver's maintenance covenants (when present) are the LBO's tightest covenant constraint and the most common trigger for sponsor-lender amendments.
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Related terms
10Y Treasury · Altman Z-Score · Asset Sensitivity · Basel III · Bond ETF · Bretton Woods
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