Accordion Option


An Accordion feature is an agreed possibility included at the outset of a financing process allowing the borrower to increase the principal amount under the main facility agreement (e.g. a capex facility) as long as certain market standard provisions are met. It is worth noting that an Accordion feature is not a committed facility by the lenders, but is at their sole discretion.

Regularly, drawings under such Accordion feature are subject to the following provisions:

  • no default
  • no repayment before the final maturity of the main facility agreement
  • margin with a max. percentage up-tick over the main facility margin
  • ranking pari passu or junior to the main facility
  • main facility to be fully drawn