What is an ABL revolver unused-line fee and how does it relate to availability?
An ABL revolver unused-line (commitment) fee is a lender charge on the undrawn portion of a revolving commitment, paid periodically on the average unused balance (AccountingTools). Conn typically fees Revolver Commitments minus Revolver Usage; Availability is Borrowing Base minus Usage—except Orion-style deals that reduce the Unused Amount by Excess Availability reserves.
Last updated: September 13, 2026
Buyer answer: unused-line fee vs availability
Per AccountingTools on commitment fees, a commitment fee is charged by a lender to keep a loan amount available, and may also be charged for the unused portion of a line of credit. For a line of credit, AccountingTools states that the fee is usually charged periodically on the average unused balance, and that a typical commitment fee begins at 0.25% of the undisbursed amount and can exceed 1.0%. AccountingTools also states that commitment fees compensate the lender for availability of funds, while interest compensates for the use of funds.
Wall Street Prep likewise states that the commitment fee is charged on the unused (undrawn) portion of a line of credit facility, with the formula Commitment Fee = Unused Revolver Capacity × Commitment Fee (%), and cites a 0.25% to 1.0% annual fee range.
Conn: fee base vs Availability (separate definitions)
Conn’s Inc. Amended ABL Credit Facility (SEC PDF) defines Availability as “the Borrowing Base minus Revolver Usage.” Separately, §3.2.1 Unused Line Fee requires borrowers to pay a fee equal to the Unused Line Fee Percentage times the amount by which the Revolver Commitments exceed the average daily Revolver Usage during any month, payable monthly in arrears. Conn’s Unused Line Fee Percentage grid lists (a) 0.25% per annum if usage is greater than 66% of Revolver Commitments, (b) 0.375% if greater than 33% but equal to or less than 66%, and (c) 0.50% if equal to or less than 33%. So in Conn, the fee base is Commitments − Usage; Availability is Borrowing Base − Usage—related concepts, not the same formula.
Orion: unused fee base reduced by Excess Availability
Orion Energy Systems EX-10.1 (SEC) lists an Unused Fee of one quarter of one percent (0.25%) per annum on the daily average of the Maximum Revolver Amount reduced by outstanding Advances, Letter of Credit Usage, the Excess Availability Reserve (if any), and the minimum required Excess Availability under Section 8.1 (the “Unused Amount”), payable monthly in arrears. The same exhibit states that borrowers shall maintain Excess Availability at or above $5,000,000 until the Financial Covenant Change Date. That is the explicit fee↔availability link: Orion folds minimum Excess Availability / reserves into the unused-fee base.
Other SEC exhibits that list unused-line / commitment fees
Designer Brands Inc. R20 (SEC) says: “Commitment fees are based on the unused portion of the ABL Revolver available for borrowings.” CPI Card Group Inc. R16 (SEC) states that the unused portion of the ABL Revolver commitment accrues a monthly unused line fee of 0.50% per annum through March 31, 2023, times Revolver commitments less average Revolver usage; effective April 1, 2023 the unused commitment fee range is 0.375% and 0.50%. CPI also states that the applicable interest rate margin ranges from 1.50% to 1.75% depending on average excess availability—pricing that varies with excess availability, distinct from Conn’s Commitments − Usage fee base.
OCC Excess availability glossary
The OCC Comptroller’s Handbook on Asset-Based Lending glossary defines Excess availability as additional funds a borrower may draw under the credit facility, typically calculated as the lower of the borrowing base or loan commitment less the outstanding balance. OCC also states that ABL facilities are often priced with fees and loan spreads that change based on performance, with the spread varying according to line availability and the borrower's financial leverage.
| Claim | Listed | URL |
|---|---|---|
| A1 AccountingTools: commitment fee / unused LOC | A commitment fee is the amount charged by a lender to keep a specific loan amount available to a borrower. This fee may also be charged for the unused portion of a line of credit. | accountingtools.com/articles/commitment-fee |
| A2 AccountingTools: periodic unused balance + typical range | For a line of credit, the fee is usually charged on a periodic basis, based on the average unused balance on the line of credit. … The typical commitment fee begins at 0.25% of the undisbursed loan amount, and can exceed 1.0%. | accountingtools.com/articles/commitment-fee |
| A3 AccountingTools: commitment vs facility; availability-of-funds vs interest | A commitment fee is based on the unused portion of a loan, while a facility fee is based on the entire lending facility, whether it is used or not. … Commitment fees compensate the lender for availability of funds, while interest compensates for the use of funds. | accountingtools.com/articles/commitment-fee |
| A4 Conn: Availability definition | Availability: the Borrowing Base minus Revolver Usage. | SEC Conn exhibit101amendedablcreditfa.pdf |
| A5 Conn: Unused Line Fee Percentage grid | Unused Line Fee Percentage: for any day, a percentage equal to (a) 0.25% per annum if … greater than 66% of the Revolver Commitments, (b) 0.375% … greater than 33% … but equal to or less than 66% …, and (c) 0.50% … equal to or less than 33% of the Revolver Commitments. | SEC Conn exhibit101amendedablcreditfa.pdf |
| A6 Conn §3.2.1 Unused Line Fee formula | 3.2.1 Unused Line Fee. The Borrowers shall pay … a fee equal to the Unused Line Fee Percentage times the amount by which the Revolver Commitments … exceed the average daily Revolver Usage during any month. Such fee shall be payable monthly in arrears… | SEC Conn exhibit101amendedablcreditfa.pdf |
| A7 Designer Brands R20: commitment fees on unused ABL revolver | Commitment fees are based on the unused portion of the ABL Revolver available for borrowings. | SEC Designer Brands R20.htm |
| A8 CPI Card R16: monthly unused line fee + rates | The unused portion of the ABL Revolver commitment accrues a monthly unused line fee, 0.50% per annum through March 31, 2023, times the aggregate amount of Revolver commitments less the average Revolver usage during the immediately preceding month. … effective April 1, 2023, … 0.375% and 0.50% (unused commitment fee). | SEC CPI Card R16.htm |
| A8b CPI: interest margin vs excess availability | …applicable interest rate margin ranges from 1.50% to 1.75% depending on the average excess availability of the facility for the most recently completed quarter. | SEC CPI Card R16.htm |
| A9 Orion EX-10.1: 0.25% Unused Fee ↔ Excess Availability | Unused Fee. An unused line fee of one quarter of one percent (0.25%) per annum of the daily average of the Maximum Revolver Amount reduced by outstanding Advances, Letter of Credit Usage and the Excess Availability Reserve (if any) and the minimum required Excess Availability under Section 8.1 (the "Unused Amount")… | SEC Orion d288048dex101.htm |
| A9b Orion: minimum Excess Availability $5,000,000 | …Borrowers shall maintain the Excess Availability of Borrowers at all times in an amount equal to or greater than $5,000,000. | SEC Orion d288048dex101.htm |
| A10 OCC glossary: Excess availability | Excess availability: Additional funds a borrower may draw under the terms of the credit facility. Excess availability is typically calculated as the lower of the borrowing base or loan commitment less the outstanding balance of the credit facility. | OCC pub-ch-asset-based-lending.pdf |
| A11 OCC: fee/spread pricing vs line availability | ABL facilities are often priced based on a complex structure of fees and loan spreads that change based on performance… spread varying according to line availability and the borrower's financial leverage. | OCC pub-ch-asset-based-lending.pdf |
| A12 Wall Street Prep: commitment fee on unused revolver | The Commitment Fee is a fee charged by lenders to borrowers on the unused portion (i.e. the undrawn portion) of a line of credit facility. … Commitment Fee = Unused Revolver Capacity × Commitment Fee (%). … 0.25% to 1.0% annual fee. | wallstreetprep.com/knowledge/commitment-fee |
Frequently asked questions
What is an ABL revolver unused-line fee and how does it relate to availability?
An ABL revolver unused-line (commitment) fee is a lender charge on the undrawn portion of a revolving commitment, paid periodically on the average unused balance (AccountingTools). Conn typically fees Revolver Commitments minus Revolver Usage; Availability is Borrowing Base minus Usage—except Orion-style deals that reduce the Unused Amount by Excess Availability reserves.
How does an unused-line fee base differ from borrowing-base Availability?
In Conn’s Amended ABL Credit Facility, Availability is the Borrowing Base minus Revolver Usage, while the Unused Line Fee is the Unused Line Fee Percentage times Revolver Commitments minus average daily Revolver Usage, payable monthly in arrears. Orion’s EX-10.1 is different: its 0.25% unused line fee is charged on an Unused Amount that is reduced by the Excess Availability Reserve and the minimum required Excess Availability—so that deal explicitly links the fee base to Excess Availability.
What unused-line fee rates do filed ABL exhibits list?
Conn lists an Unused Line Fee Percentage grid of 0.25%, 0.375%, and 0.50% per annum by revolver usage ranges. Orion lists a 0.25% unused line fee. CPI Card Group lists a monthly unused line fee of 0.50% per annum through March 31, 2023, then an unused commitment fee range of 0.375% and 0.50%. AccountingTools lists a typical commitment fee that begins at 0.25% and can exceed 1.0%.
What is the difference between a commitment fee and a facility fee?
AccountingTools states that a commitment fee is based on the unused portion of a loan, while a facility fee is based on the entire lending facility, whether it is used or not. It also states that commitment fees compensate the lender for availability of funds, while interest compensates for the use of funds.
What does the OCC handbook say about Excess availability?
The OCC Comptroller’s Handbook on Asset-Based Lending glossary defines Excess availability as additional funds a borrower may draw under the credit facility, typically the lower of the borrowing base or loan commitment less the outstanding balance. OCC also states that ABL fee and spread structures often vary according to line availability and the borrower’s financial leverage.
Related
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