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What does margin grid mean?

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margin grid
Noun


A matrix used to adjust the margin (price) of a term loan or revolving credit facility and, where applicable, a commitment fee during the life of facilities, usually based on a credit rating of the borrower and/or a specific financial ratio, commonly net-debt to EBITDA ratio.

Synonym(s): 
  • margin matrix; margin ratchet; pricing grid; pricing matrix.
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