Meaning COMMITMENT FEE: A fee paid to a commercial bank in return for its legal commitment to lend funds that have not yet been advanced. Often used in risk arbitrage. Payment to institutional investors in the U.K. (pension funds and life insurance companies) by the lead underwriter of a takeover that takes place when the underwriter provides the target company's shareholders with a cash alternative for a target company's shares in exchange for the bidding companies' shares. The payment is typically 0.5% for the first 30 days, 1.25% for each week thereafter, and a final 0.75% acceptance payment when the takeover is completed
More terms such as Commitment fee in Dictionary C.
- Definition Cross-Sectional Approach:
- Examples A statistical methodology applied to a set of firms at a particular time commitment fee definition.
- Definition Captive Finance Company:
- Examples A company, usually a subsidiary that is wholly owned, whose main function is financing consumer purchases from the parent company commitment fee explain.
- Definition Country Economic Risk:
- Examples Developments in a national economy that can affect the outcome of an international financial transaction commitment fee what is.
- Definition Commercial Paper:
- Examples Short-term unsecured promissory notes issued by a corporation. The maturity of commercial paper is typically less than 270 days; the most common maturity range is 30 to 50 days or less commitment fee meaning.
- Definition Circle:
- Examples actual or potential, often seek out and circle investor interest in a new issue before final pricing. The customer circled has basically made a commitment to purchase the issue if it is available at commitment fee abbreviation.
