Practical Law Glossary Item 1-500-2300 (Approx. 2 pages)
Glossary
Upfront Fee
Fee paid to a lender by a borrower as consideration for making a new loan. An upfront fee is distinguished from a commitment fee and the interest rate paid on the loan.
In a syndicated loan, a lender generally receives an upfront fee based on the lender's ultimate allocation of loan commitment after the loan is syndicated. The arranger in a syndicated loan usually receives a higher upfront fee for structuring the loan.