Application of Mandatory Prepayments by Type of Loans Clause Samples
The 'Application of Mandatory Prepayments by Type of Loans' clause defines how any required prepayments made by a borrower are allocated among different types of outstanding loans under a credit agreement. In practice, this clause specifies the order and manner in which prepayments are applied, such as whether they first reduce term loans, revolving loans, or specific tranches, and may set priorities based on loan type or maturity. Its core function is to ensure clarity and fairness in the reduction of loan balances, preventing disputes and aligning prepayment application with the lender’s and borrower’s expectations.
POPULAR SAMPLE Copied 2 times
Application of Mandatory Prepayments by Type of Loans. Any amount required to be paid pursuant to Sections 2.14(a) through 2.14(d) shall be applied as follows: first, to prepay Term Loans on a pro rata basis (in accordance with the respective outstanding principal amounts thereof) and further applied first in forward order to accrued interest and fees due on the amount of the prepayment with respect to the Term Loans, second the next eight scheduled Installments of principal of the Term Loans and third on a pro rata basis to the remaining scheduled Installments of principal of the Term Loans; provided that if at the time any amount is required to be paid pursuant to Section 2.14(a) or (b), the Borrower is required to offer to repurchase Other First Priority Debt pursuant to the terms of the documentation governing such Indebtedness with any Consolidated Excess Cash Flow, Net Asset Sale Proceeds or Net Insurance/Condemnation Proceeds, (such Other First Priority Debt required to be offered to be so repurchased, “Other Applicable Indebtedness”), then the Borrower may apply such Consolidated Excess Cash Flow, Net Asset Sale Proceeds or Net Insurance/Condemnation Proceeds, as applicable, on a pro rata basis (determined on the basis of the aggregate outstanding principal amount of the Term Loans and Other Applicable Indebtedness at such time; provided that the portion of such Cash proceeds allocated to Other Applicable Indebtedness shall not exceed the amount of such Cash proceeds required to be allocated to the Other Applicable Indebtedness pursuant to the terms thereof, and the remaining amount, if any, of such Cash proceeds shall be allocated to the Term Loans in accordance with the terms hereof) to the prepayment of the Term Loans and to the repurchase of Other Applicable Indebtedness, and the amount of prepayment of the Term Loans that would have otherwise been required pursuant to Section 2.14(a) or (b), as applicable, shall be reduced accordingly; provided further that to the extent the holders of Other Applicable Indebtedness decline to have such Indebtedness purchased, the declined amount shall promptly (and in any event within ten (10) Business Days after the date of such rejection) be applied to prepay the Term Loans in accordance with the terms hereof. second, to prepay the Revolving Loans to the full extent thereof; third, to prepay outstanding reimbursement obligations with respect to Letters of Credit and Bank Guarantees; and fourth, to Cash Collateralize Letters of Credit and Bank Guarantees.
Application of Mandatory Prepayments by Type of Loans. Except as provided in subsection 2.4D, any amount required to be applied as a mandatory prepayment of the Loans and/or a reduction of the Revolving Loan Commitment Amount pursuant to subsections 2.4B(iii)(a)-(f) shall be applied first to prepay the Term Loans to the full extent thereof, second, to the extent of any remaining portion of such amount, to prepay the Swing Line Loans to the full extent thereof and to permanently reduce the Revolving Loan Commitment Amount by the amount of such prepayment, third, to the extent of any remaining portion of such amount, to prepay the Revolving Loans to the full extent thereof and to further permanently reduce the Revolving Loan Commitment Amount by the amount of such prepayment, fourth, to the extent of any remaining portion of such amount, to further permanently reduce the Revolving Loan Commitment Amount to the full extent thereof and fifth, to the extent of any remaining portion of such amount, to cash collateralize any outstanding Letters of Credit. Any mandatory reduction of the Revolving Loan Commitment Amount pursuant to this subsection 2.4B shall be in proportion to each Revolving Lender’s Pro Rata Share.
Application of Mandatory Prepayments by Type of Loans. Any amount required to be paid pursuant to Sections 2.14(a) through 2.14(d) shall be applied to prepay Term Loans on a pro rata basis (in accordance with the respective outstanding principal amounts thereof, which prepayments shall be applied to the scheduled Installments of principal in accordance with Section 2.15(c)).
Application of Mandatory Prepayments by Type of Loans. Any amount required to be paid pursuant to Sections 2.14(a) through 2.14(e) shall be applied as follows: first, to prepay to the next four (4) scheduled Installments of the Term Loans on a pro rata basis (in accordance with the respective outstanding principal amounts thereof) and thereafter applied on a pro rata basis to the remaining scheduled Installments of principal of the Term Loans on a pro rata basis (in accordance with respective outstanding principal amounts thereby); provided that prior to the Tranche B-1 Term Loan Maturity Date the U.S. Borrower may elect to have such payments applied solely with respect to the Tranche B-1 Term Loans; second, to prepay the Swing Line Loans to the full extent thereof and to permanently reduce the Revolving Commitments by the amount of such prepayment; third, to prepay the Revolving Loans to the full extent thereof and to further permanently reduce the Revolving Commitments by the amount of such prepayment; fourth, to prepay outstanding reimbursement obligations with respect to Letters of Credit and to further permanently reduce the Revolving Commitments by the amount of such prepayment; fifth, to cash collateralize Letters of Credit and to further permanently reduce the Revolving Commitments by the amount of such cash collateralization; and sixth, to further permanently reduce the Revolving Commitments to the full extent thereof.
Application of Mandatory Prepayments by Type of Loans. Any amount required to be paid pursuant to Sections 2.14(a) through 2.14(e) shall be applied as follows: first, to prepay Term Loans on a pro rata basis (in accordance with the respective outstanding principal amounts thereof) and further applied on a pro rata basis to reduce the remaining scheduled Installments of principal of the Tranche A Term Loans, Tranche B Term Loans and the New Term Loans (if any); second, to prepay the Swing Line Loans to the full extent thereof; third, to prepay the Revolving Loans to the full extent thereof; fourth, to prepay outstanding reimbursement obligations with respect to Letters of Credit; fifth, to cash collateralize Letters of Credit; and sixth, to Borrower.
Application of Mandatory Prepayments by Type of Loans. Any amount (the "Applied Amount") required to be applied as a mandatory prepayment of the AXELs under the AXEL Credit Agreement or the Revolving Loans and/or a reduction of the Revolving Loan Commitments pursuant to subsections 2.4A(iii)(a)-(e) shall be applied first to prepay the AXELs under the AXEL Credit Agreement to the full extent thereof, second, to the extent of any remaining portion of the Applied Amount, to prepay the Revolving Loans to the full extent thereof and to further permanently reduce the Revolving Loan Commitments by the amount of such prepayment, and third, to the extent of any remaining portion of the Applied Amount, to further permanently reduce the Revolving Loan Commitments to the full extent thereof and to cash collateralize any Letters of Credit outstanding (with any such amounts held in the Collateral Accounts pursuant to the Intercreditor Agreement). Any prepayments of the Revolving Loans under subsection 2.4A(iii)(f) shall be applied to reduce the Revolving Loans. REVOLVING LOAN CREDIT AGREEMENT EXECUTION 53 61 (c) Application of Prepayments to Base Rate Loans and Eurodollar Rate Loans. Considering Revolving Loans being prepaid, any prepayment thereof shall be applied first to Base Rate Loans, to the full extent thereof before application to Eurodollar Rate Loans, in a manner which minimizes the amount of any payments required to be made by Company pursuant to subsection 2.6D.
Application of Mandatory Prepayments by Type of Loans. Any amount (the ----------------------------------------------------- "Applied Amount") required to be applied as a mandatory prepayment of the Loans and/or a reduction of the Revolving Loan Commitments pursuant to subsections 2.4B(iii)(a)-(d) shall be applied first to the ratable prepayment of the Tranche ----- A Term Loans, Tranche B Term Loans and Tranche C Term Loans to the full extent thereof, second, to the extent of any remaining portion of the Applied Amount, ------ to the prepayment of the Swing Line Loans to the full extent thereof and to permanently reduce the Revolving Loan Commitments by the amount of such prepayment, third, to the extent of any remaining portion of the Applied Amount, ----- to the prepayment of the Revolving Loans to the full extent thereof and to further permanently reduce the Revolving Loan Commitments by the amount of such prepayment, and fourth, to the extent of any remaining portion of the Applied ------ Amount, to further permanently reduce the Revolving Loan Commitments to the full extent thereof; provided that Lenders with Tranche B Term Loans and/or Tranche C -------- Term Loans outstanding may waive the right to receive up to 50% of the amount of such mandatory prepayment, and if any such Lender so elects, the amount that would otherwise have been applied as a mandatory prepayment of such Lender's Tranche B Term Loan and/or Tranche C Term Loan shall be applied to the prepayment of the Tranche A Term Loans until such Loans are paid in full and then applied on a pro rata basis to reduce the scheduled installments of principal of such Lender's Tranche B Term Loan and/or Tranche C Term Loan in inverse order of maturity.
Application of Mandatory Prepayments by Type of Loans. Except as provided in subsection 2.4D, any amount required to be applied as a mandatory prepayment of the Loans pursuant to subsections 2.4B(iii)(e) shall be applied first to the extent of any remaining portion of such amount, to prepay the Swing Line Loans to the full extent thereof, and second, to the extent of any remaining portion of such amount, to prepay the Revolving Loans to the full extent thereof.
Application of Mandatory Prepayments by Type of Loans. Any amount (the "Applied Amount") required to be applied as a mandatory prepayment of the Loans and/or a reduction of the Acquisition Loan Commitments pursuant to subsections 2.4B(iii)(a)-(d) shall be applied FIRST to prepay the Term Loans to the full extent thereof, SECOND, to the extent of any remaining portion of the Applied Amount, to prepay the Acquisition Loans to the full extent thereof and to permanently reduce the Acquisition Loan Commitments by the amount of such prepayment, and THIRD, to the extent of any remaining portion of the Applied Amount, to prepay the Swing Line Loans and thereafter to prepay Working Capital Loans to the full extent thereof but in either case without permanently reducing the Working Capital Loan Commitments by the amount of such prepayments.
Application of Mandatory Prepayments by Type of Loans. Any amount required to be paid pursuant to Section 2.10(c) shall be applied as follows:
(i) first, to prepay the Swing Line Loans to the full extent thereof;
(ii) second, to prepay the Revolving Loans to the full extent thereof;
(iii) third, to prepay outstanding reimbursement obligations with respect to Letters of Credit; and
(iv) fourth, to cash collateralize Letters of Credit.