Examples of Prime Rate Spread in a sentence
Subject to the provisions of Section 4.3 hereof, interest on Prime Rate Loans shall be payable monthly as of the end of each month at an interest rate per annum equal to the Prime Lending Rate plus the Prime Rate Spread.
In the event of any change in the Interest Coverage Ratio of the Consolidated Entity for the most recently ended four full fiscal quarters of the Consolidated Entity, the Prime Rate Spread shall change effective as of the first calendar month beginning after the date on which the most recent Financial Statements of the Consolidated Entity were required to be delivered to the Agent pursuant to Section 7.1(a) or 7.1(c), as applicable.
If any installment of principal or interest under the Notes or any other amount payable to the Banks under any Loan Document is not paid when due, it shall thereafter bear interest at a fluctuating interest rate per annum at all times equal to the sum of the Prime Rate plus the Applicable Prime Rate Spread plus 2%, to the extent permitted by applicable Law, until paid in full (whether before or after judgment).
Upon and during the continuance of any Event of Default, the Indebtedness evidenced by the Notes shall, at the election of the Majority Banks and upon notice to Borrower (and in lieu of interest provided for in the preceding sentence), bear interest at a fluctuating interest rate per annum at all times equal to the sum of the Prime Rate plus the Applicable Prime Rate Spread plus 2%, to the extent permitted by applicable Law, until no Event of Default exists (whether before or after judgment).
As used herein, “Applicable Margin” means: Borrower’s Senior Debt to EBITDA Ratio Prime Rate Spread (Term Loan) LIBOR Spread (Term Loan) Prime Rate Spread (Advances under Revolving Line) LIBOR Spread (Advances under Revolving Line) Greater than or equal to 2.00 to 1.00 1.25 % 3.50 % 1.00 % 3.25 % Less than 2.00 to 1.00 but greater than or equal to 1.50 to 1.00 0.75 % 3.00 % 0.75 % 3.00 % Less than 1.50 to 1.00 0.00 % 2.75 % 0.50 % 2.75 % 5.