Which fee is charged on the entire amount of a credit facility?

The facility fee is indeed the correct answer because it is a charge applied to the total amount of a credit facility, regardless of the amount drawn down by the borrower. This fee is typically charged to compensate the lender for making the capital available, ensuring the lender has some income from the facility even if it is not utilized fully.

In leveraged finance, a facility fee serves to cover the administrative costs and risks associated with lending, particularly for lines of credit that may remain undrawn at times. This fee is generally expressed as a percentage of the total facility amount and is often charged periodically, such as on a quarterly or annual basis.

Understanding the nuances of the other fee types can highlight why they don't fit this definition. The commitment fee, for instance, is applicable to the undrawn portion of a facility, meaning it only applies to funds not yet utilized. The utilization fee is charged when the borrower draws down a part of the facility, specifically based on the amount being used. The upfront fee is often one-time on the total amount but is more aligned with the process of securing the loan rather than an ongoing charge for the capacity of the facility itself.