What does "all-in-fully drawn spread" refer to?

The term "all-in-fully drawn spread" refers to the total cost of borrowing that a borrower would incur when a loan is fully drawn. This includes not only the drawn spread, which is the base interest rate charged on the borrowed amount, but also any additional fees associated with utilizing the credit facility, such as usage fees or commitment fees that may apply when the loan is fully utilized.

Understanding this term is crucial as it provides a comprehensive picture of the borrowing costs, allowing borrowers and lenders to evaluate the economics of a loan or credit line accurately. By including both the drawn spread and any applicable fees, this measure captures the total cost that the borrower will bear, making it a vital figure in leveraged finance assessments and calculations.

The other options do not capture the full context of the borrowing costs involved when looking at an "all-in-fully drawn spread." For example, option A focuses solely on interest payable post-maturity, which ignores the fees incurred during the loan's term. Option C relates to the market price of the bond, which is unrelated to borrowing costs. Option D talks about final payments at maturity, which does not encompass the ongoing costs associated with the borrowing throughout its life.