Applicable Margin Sample Clauses
The Applicable Margin clause defines the specific interest rate margin that will be added to a base rate to determine the total interest rate payable on a loan or credit facility. This margin may vary depending on factors such as the borrower's credit rating, financial covenants, or the type of loan tranche involved. For example, a borrower with a higher credit rating might receive a lower margin, while a riskier borrower could be assigned a higher margin. The core function of this clause is to clearly establish how the interest rate is calculated, ensuring transparency and predictability for both lender and borrower.
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Applicable Margin. On any date the Applicable Margin for LIBOR Rate Loans and Base Rate Loans shall be as set forth below based on the ratio of the Consolidated Total Indebtedness of REIT and its respective Subsidiaries to the Gross Asset Value of REIT and its respective Subsidiaries: Pricing Level 1 Less than or equal to 35% 2.50 % 1.25 % Pricing Level 2 Greater than 35% but less than or equal to 40% 2.75 % 1.50 % Pricing Level 3 Greater than 40% but less than or equal to 45% 3.00 % 1.75 % Pricing Level 4 Greater than 45% but less than or equal to 55% 3.25 % 2.00 % Pricing Level 5 Greater than 55% 3.50 % 2.25 % The initial Applicable Margin shall be at Pricing Level 4. The Applicable Margin shall not be adjusted based upon such ratio, if at all, until the first (1st) day of the first (1st) month following the delivery by Borrower to the Agent of the Compliance Certificate after the end of a calendar quarter. In the event that Borrower shall fail to deliver to the Agent a quarterly Compliance Certificate on or before the date required by §7.4(c), then without limiting any other rights of the Agent and the Lenders under this Agreement, the Applicable Margin for Loans shall be at Pricing Level 5 until such failure is cured within any applicable cure period, or waived in writing by the Required Lenders, in which event the Applicable Margin shall adjust, if necessary, on the first (1st) day of the first (1st) month following receipt of such Compliance Certificate. In the event that the Agent and the Borrower determine that any financial statements previously delivered were incorrect or inaccurate (regardless of whether this Agreement or the Commitments are in effect when such inaccuracy is discovered), and such inaccuracy, if corrected, would have led to the application of a higher Applicable Margin for any period (an “Applicable Period”) than the Applicable Margin applied for such Applicable Period, then (i) the Borrower shall as soon as practicable deliver to the Agent the corrected financial statements for such Applicable Period, (ii) the Applicable Margin shall be determined as if the Pricing Level for such higher Applicable Margin were applicable for such Applicable Period, and (iii) the Borrower shall within three (3) Business Days of demand thereof by the Agent pay to the Agent the accrued additional amount owing as a result of such increased Applicable Margin for such Applicable Period, which payment shall be promptly applied by the Agent in accordance with this Agreemen...
Applicable Margin. With respect to any Advance, the Applicable Margin shall be as set forth in a certificate of the chief financial officer of the Borrower delivered to the Administrative Agent based upon the Applicable Margin Ratio for the most recent fiscal quarter end for which financial statements are furnished by the Borrower to the Administrative Agent and each Bank for the fiscal quarter most recently ended as follows: Applicable Margin Ratio Base Rate Advance LIBOR Advance Applicable Margin Applicable Margin
A. Greater than or equal 1.250% 2.500% to 5.50:1
B. Greater than or equal 1.125% 2.375% to 5.00:1, but less than 5.50:1
C. Greater than or equal 0.875% 2.125% to 4.50:1, but less than 5.00:1
D. Greater than or equal 0.625% 1.875% to 4.00:1, but less than 4.50:1
E. Less than 4.00:1 0.250% 1.500% Changes to the Applicable Margin shall be effective (i) with respect to an increase in the Applicable Margin, as of the second (2nd) Business Day after the day on which the financial statements are required to be delivered to the Administrative Agent and the Banks pursuant to Section 6.1 or Section 6.2 hereof, as the case may be; provided, however, if such financial statements are not delivered to the Administrative Agent and the Banks on or before the date specified in such Section, such increase shall be effective as of the date specified in such Section for delivery of the financial statements, and (ii) with respect to a decrease in the Applicable Margin, as of the later of (A) the second (2nd) Business Day after the day on which such financial statements are required to be delivered pursuant to Section 6.1 or Section 6.2 hereof, as the case may be, and (B) the date on which such financial statements are actually delivered to the Administrative Agent and the Banks. Upon the occurrence and during the continuance of an Event of Default, the Applicable Margins shall not be subject to downward adjustment and shall automatically revert to the Applicable Margins set forth in part A of the above table until such time as such Event of Default is cured or waived.
Applicable Margin. The Applicable Margin for each Series [ ] New Term Loan shall mean, as of any date of determination, [ ]% per annum
Applicable Margin. On any date that the lower of the Implied Ratings issued from time to time by either of the Rating Agencies for the Borrower or the Guarantor is an Investment Grade Rating, the applicable margin set forth below based on the lower of the Implied Ratings issued by either of the Rating Agencies for the Borrower or the Guarantor and the type of the Loan: Rating Base Rate Loans LIBOR Rate Loans A/A2 or better 0% 1.25% BBB+/Baa1 to A-/A3 0% 1.30% BBB/Baa2 0% 1.40% BBB-/Baa3 0% 1.50% provided, however, that on any date that the lower of the Implied Ratings for the Borrower or the Guarantor is not an Investment Grade Rating or neither the Borrower nor the Guarantor has obtained a rating from either of the Rating Agencies, the Applicable Margin for Base Rate Loans shall be 0.00% and the Applicable Margin for LIBOR Rate Loans shall be 1.625%. In the event of any change in an Implied Rating of either the Borrower or the Guarantor by either of the Rating Agencies or if either the Borrower s or the Guarantor's Implied Rating shall cease at any time to be an Investment Grade Rating by either of the Rating Agencies (but subject to the provisions within the definition of the term "Investment Grade Rating"), such change shall effect a change in the Applicable Margin on the first Business Day after the Rating Notice Date. It is the intention of the parties that if either the Borrower or the Guarantor shall only obtain an Investment Grade Rating from one of the Rating Agencies without seeking an Investment Grade Rating from the other of the Rating Agencies, the Borrower shall be entitled to the benefit of the rate reductions described above (it being the intent of the parties that the Borrower shall be entitled to the benefit of the rate reductions described above if only one of the Borrower or the Guarantor obtains an Investment Grade Rating); provided that if one of the Borrower or the Guarantor shall have obtained an Investment Grade Rating from both of the Rating Agencies, the lower of the two ratings (or the loss of the Investment Grade Rating from one of the Rating Agencies thereafter), shall control; and provided further that if only one of the Borrower or the Guarantor shall have obtained an Investment Grade Rating from one of the Rating Agencies, the loss of the Investment Grade Rating from such Rating Agency shall control. It is further the intention of the parties that if both the Borrower and the Guarantor shall have obtained an Investment Grade Rating from one o...
Applicable Margin. The definition of "Applicable Margin" shall be amended and restated in its entirety as set forth below:
Applicable Margin. Section 1.01 of the Credit Agreement is hereby amended by deleting the definition of “Applicable Margin” in its entirety and substituting the following therefor:
Applicable Margin. On the terms and subject to the conditions of this Amendment, the definition of Applicable Margin in Section 1.01 of the Existing Credit Agreement is hereby amended and restated in its entirety as follows:
Applicable Margin. The Applicable Margin for each New [Term][Revolving] Loan shall mean, as of any date of determination, a percentage per annum as set forth below:
Applicable Margin. The definition of “Applicable Margin” in Section 1.10 of the Loan Agreement is hereby amended by deleting such definition in its entirety and replacing it with the following:
Applicable Margin. The Agent shall receive a certificate, executed by an Authorized Officer of the Borrower, delineating the Applicable Margin after giving pro forma effect to the Loans to be incurred on the Original Closing Date.