Revolver
LBOA credit line a company can draw, repay and redraw as needed, used to fund working capital swings.
Also written: revolving credit facility, RCF
Unlike a term loan, which is drawn once and repaid on a schedule, a revolver can be used repeatedly up to a limit. It exists to bridge the timing gaps in a business: stock bought before it is sold, customers paying after suppliers.
The company pays a commitment fee on the undrawn portion and interest only on what it has drawn, so an unused revolver is cheap insurance rather than free.
In an LBO model it is the balancing item. When cash falls short the revolver is drawn, and when there is surplus cash it is repaid first in the sweep, which is what makes the debt schedule circular and creates the classic interest circularity problem.
Revolver lenders often retain a springing covenant that tests only once drawings pass a threshold, which was the compromise that allowed covenant lite term loans alongside them.