Fee payable to the arrangers of a debt financing, in addition to a set Arrangement Fee (or Base Fee), subject to certain conditions. Incentive Fees are typically offered to the Lead Arranger(s), who coordinate the entire process on behalf of the Borrower or Issuer, and are tied to achieving certain thresholds (either in terms of debt size or economic terms), further incentivizing the Lead Arranger(s) to achieve the best results for the issuer/borrower.

If you would like to learn more about the debt financing process, please see our series Termgrid Primers.