RCF
Business & Finance abbreviation · Finance
| Stands for | Revolving credit facility |
|---|---|
| Categories | Business & Finance |
RCF stands for Revolving credit facility, a finance abbreviation.
Committed bank line that lets a company borrow, repay and reborrow up to a set limit during the facility's term, paying interest on drawn amounts and a commitment fee on unused amounts. Companies use it for working capital and as a liquidity backstop.
Example: The company drew $400 million on its RCF in March to bolster cash as markets froze.
Usage notes
Also called a revolver. RCFs usually come with financial covenants, such as maximum leverage or minimum interest cover. In leveraged buyouts the RCF often has a "springing" covenant tested only when drawings exceed a set threshold.
Related abbreviations
More finance abbreviations
- PI – Profitability index
- PIK – Payment in kind
- PIPE – Private investment in public equity
- PV – Present value
- QoE – Quality of earnings
- RAROC – Risk-adjusted return on capital
- ROA – Return on assets
- ROCE – Return on capital employed
- ROE – Return on equity
- ROI – Return on investment
- ROIC – Return on invested capital
- ROS – Return on sales