Benchmark Replacement Amendment Clause Samples
A Benchmark Replacement Amendment clause establishes the process for substituting a financial benchmark, such as LIBOR, if it becomes unavailable or is no longer reliable. This clause typically outlines the criteria for selecting a new benchmark, the parties involved in the decision, and the method for adjusting related terms to reflect the change. Its core function is to ensure continuity and certainty in financial contracts by providing a clear mechanism for adapting to changes in widely used reference rates.
Benchmark Replacement Amendment. The Administrative Agent and the Borrower may, without the consent of any Lender, enter into amendments or modifications to this Agreement or any of the other Loan Documents or to enter into additional Loan Documents as the Administrative Agent reasonably deems appropriate in order to implement any Benchmark Replacement.
Benchmark Replacement Amendment. (a) Subject to the terms and conditions set forth herein, on the first Business Day following the Effective Date (as defined below), (i) the Credit Agreement shall be amended to delete the stricken text |US-DOCS\140660962.7|| (indicated textually in the same manner as the following example: stricken text) and to add the double-underlined text (indicated textually in the same manner as the following example: double-underlined text) as set forth in Exhibit A hereto (the “Amended Credit Agreement”) and (ii) Exhibits B and H to the Credit Agreement shall be amended and restated in their entirety as set forth in Exhibit B hereto.
(b) The Administrative Agent and the Borrower confirm and agree that (i) the Loans denominated in Dollars outstanding on the date hereof bearing interest based upon the US LIBO Rate (as defined in the Credit Agreement prior to giving effect to this Amendment) with an Interest Period ending after the first Business Day after the Effective Date (such Loans bearing interest based upon the US LIBO Rate, the “Existing US LIBO Rate Loans”), may remain outstanding as such until the conclusion of such applicable Interest Period, at which point such Loans, shall be converted to Term SOFR Loans bearing interest at a rate determined by reference to the Adjusted Term SOFR in accordance with the terms of the Amended Credit Agreement and (ii) the terms of the Credit Agreement (as in effect immediately prior to the effectiveness of this Amendment) in respect of the calculation, payment and administration of the Existing US LIBO Rate Loans shall remain in effect from and after the date hereof until the end of such Interest Periods for such Loans, in each case, for purposes of making, and the administration of, interest payments on the Existing US LIBO Rate Loans.