Line of Credit

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Related to Revolving Credit Line: Revolving credit facility, Available Credit

Line of Credit

The maximum borrowing power granted to a person from a financial institution.

Line of credit denotes a limit of credit extended by a bank to a customer, who can avail himself or herself of its full extent in dealing with the bank but cannot exceed this limit. It most frequently covers a series of transactions, in which case, when the customer's line of credit is nearly exhausted or not replenished, the customer is expected to reduce the indebtedness by submitting payments to the bank before making additional use of the line of credit.

References in periodicals archive ?
BANKING AND CREDIT NEWS-February 10, 2017-First Foundation gets USD 25m revolving credit line
Patriot National Inc (NYSE:PN) revealed on Monday that it closed a new USD250m term loan and USD30m revolving credit line with Cerberus Business Finance, an affiliate of Cerberus Capital Management LP, to recapitalise the company.
The banking unit, Banque PSA Finance, has signed a EUR4.1bn, five-year term loan and extended a EUR1.2bn revolving credit line until January 2016.
Volvo AB (NASDAQ: VOLV) (STO: VOLVA) (STO: VOLVB), has signed a EUR1.2bn revolving credit line, according to data compiled by Bloomberg.
The financing includes a term loan B of EUR1.667bn, a term loan A of EUR454m, a revolving credit line of EUR227m, and another credit line of EUR220m.
PharMerica paid for the acquisition with its existing cash and borrowings under its revolving credit line, it said in a statement.
The revolving credit line will be increased to USD45m, replacing an earlier USD40m revolving credit line and a USD5m term loan.
The new credit facility consists of a USD1.8bn term loan and a USD255m revolving credit line. The re-financing was significantly oversubscribed, enabling the company to reduce its financing costs by 175 basis points to 200 basis points over the London Interbank Offered Rate (LIBOR).
The new line of credit is made up of a $25 million reducing revolver line, an uncommitted $15 million increase to the reducing revolver and a $10 million revolving credit line.
Westmoreland Coal Company (NasdaqGS:WLB) disclosed on Thursday that East West Bank replaces Bank of the West under its parent level revolving credit line.
Specifically, the bank, which is a unit of East West Bancorp, extended a USD3.5m secured term loan with a three-year lifetime and a USD2.5m revolving credit line due in January 2014.
The company is to receive a USD348m revolving credit line from BNP Paribas SA (BNP.PA), DNB ASA, Nordea Bank AB, Royal Bank of Scotland Group Plc (LSE: RBS), Skandinaviska Enskilda Banken AB, Svenska Handelsbanken AB and Swedbank AB.