revolving-credit-agreement

name	revolving-credit-agreement
title	Revolving Credit Agreement
description	Drafts a market-standard U.S. revolving credit agreement for bilateral or syndicated facilities. Covers facility structure, SOFR/base rate interest, borrowing base, LC sublimits, collateral, guarantees, covenants, conditions precedent, events of default, and remedies. Use when drafting or negotiating revolving credit facilities, asset-based lending agreements, or syndicated loan documents.
author	CaseMark
author_url	https://github.com/CaseMark/skills/tree/main/skills/legal/revolving-credit-agreement
license	Apache-2.0
version	0.1.0
execution_mode	open
jurisdiction	us
practice	finance
language	en

Revolving Credit Agreement

Generates a complete revolving credit agreement for U.S. commercial lending. Supports bilateral and syndicated structures with asset-based or cash-flow underwriting.

Prerequisites

Gather before drafting:

1. Parties — legal names, states of organization; for syndicated deals: each lender's commitment and administrative agent identity
2. Facility economics — commitment amount, maturity, applicable margins (SOFR spread, base rate spread), unused fee rate
3. Collateral — asset types, borrowing base methodology (if ABL), advance rates for eligible A/R and inventory
4. Guarantors — legal names, scope (unconditional/absolute vs. limited)
5. Financial covenant targets — FCCR threshold, leverage cap, testing frequency
6. Permitted baskets — indebtedness, investments, restricted payments, asset sale thresholds

Document Structure

Draft the following sections in order:

1. Header & Parties

• Execution date, legal names, states of organization
• Syndicated: agent designation, lender commitment schedule
• Recitals (transaction context, refinancing purpose)
• Core defined terms: Agreement, Borrower, Lender, Obligations

2. Credit Facility

Element	Key Points
Revolving Commitment	Amount in figures and words
Availability Period	Closing → Maturity; early termination triggers
LC Sublimit	Max face amount; reduces revolving availability dollar-for-dollar
Borrowing Base	Advance rates vs. eligible A/R/inventory; BB certificate schedule
Commitment Reductions	Voluntary (borrower) and mandatory (specified events)

3. Borrowing Mechanics

Loan Type	Notice	Lead Time
Base Rate	11:00 a.m.	Same day
SOFR (1M/3M/6M)	11:00 a.m.	2–3 business days

Borrowing notice must specify: amount, funding date, rate option, interest period (SOFR only). Each request is a deemed rep that all conditions precedent remain satisfied.

4. Interest, Fees & Payments