Call Protection Clause Samples
Call protection is a contractual provision that restricts the issuer of a callable security, such as a bond, from redeeming it before a specified date. Typically, this period lasts for several years after issuance, during which the issuer cannot exercise their right to call, or repurchase, the security from investors. By providing this protection, the clause ensures that investors receive a predictable stream of interest payments and are shielded from the risk of early redemption, which could occur if interest rates decline and the issuer seeks to refinance at a lower cost.
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Call Protection. In the event all or any portion of the principal of the Loans is (i) voluntarily prepaid under Section 2.1(c), (ii) prepaid under Section 2.3(a) (other than as a result of any Disposition pursuant to clause (g) or (h) of the definition of “Permitted Dispositions”), Section 2.3(b) (other than as a result of receipt of any Extraordinary Receipts under clause (a) or (b) of the definition thereof) or Section 2.3(c), (iii) accelerated in accordance with Article XI (including, without limitation, automatic acceleration upon an Event of Default under Section 10.6 or operation of law upon the occurrence of a bankruptcy or insolvency event) or (iv) satisfied or released by foreclosure (whether by power of judicial proceeding) or deed in lieu of foreclosure, Borrowers shall be required to pay (A) the Make Whole Amount if such prepayment, acceleration, satisfaction or release occurs on or prior to the 30-month anniversary of the Closing Date or (B) the Applicable Prepayment Premium if such prepayment, acceleration, satisfaction or release occurs after the 30-month anniversary of the Closing Date (the Make Whole Amount, the Applicable Prepayment Premium, the Change of Control Premium and the Equity Claw Premium, as the case may be, the “Prepayment Premium”). It is understood and agreed that the Prepayment Premium applicable at the time of a prepayment, acceleration, satisfaction or release shall constitute part of the Obligations, in view of the impracticability and extreme difficulty of ascertaining actual damages and by mutual agreement of the parties as to a reasonable calculation of each Lender’s lost profits as a result thereof. Any Prepayment Premium payable under the terms of this Agreement shall be presumed to be the liquidated damages sustained by each Lender as the result of the early termination, and Borrowers agree that it is reasonable under the circumstances currently existing. EACH LOAN PARTY EXPRESSLY WAIVES (TO THE FULLEST EXTENT IT MAY LAWFULLY DO SO) THE PROVISIONS OF ANY PRESENT OR FUTURE STATUTE OR LAW THAT PROHIBITS OR MAY PROHIBIT THE COLLECTION OF THE FOREGOING PREPAYMENT PREMIUM IN CONNECTION WITH SUCH PREPAYMENT PREMIUM OR ACCELERATION. Borrowers expressly agree (to the fullest extent that they may lawfully do so) that: (A) the Prepayment Premium is reasonable and is the product of an arm’s length transaction between sophisticated business people, ably represented by counsel; (B) the Prepayment Premium shall be payable notwithstanding the the...
Call Protection. If the Commitments are voluntarily terminated or reduced by the Borrower pursuant to Section 2.06(b) at any time on or prior to the first anniversary of the Effective Date, the Borrower shall on the date of any such termination or reduction pay to the Administrative Agent, for the ratable benefit of the Lenders, an amount equal to two percent (2%) of the aggregate principal amount of such termination or reduction.
Call Protection. (i) Any prepayment of all or any portion of the Initial Term Loans or the Delayed Draw Term Loans in connection with (i) any voluntary prepayment pursuant to Section 2.05(a)(i) (excluding, for the avoidance of doubt, any reduction of the Initial Term Loans or the Delayed Draw Term Loans in connection with a permitted assignment or buyback pursuant to Section 2.05(a)(v), Section 10.07(k) or Section 10.07(l)), (ii) any mandatory prepayment pursuant to Section 2.05(b)(iii) and (iii) any Lender being replaced pursuant to Section 3.07(a)(iii) for failure to consent to a Permitted Repricing Amendment shall, in each case, be accompanied by a prepayment premium equal to (x) 5.00% of the aggregate principal amount of such Initial Term Loans or such Delayed Draw Term Loans, as applicable, so prepaid, if such prepayment occurs prior to the first anniversary of the Closing Date, (y) 1.00% of the aggregate principal amount of such Initial Term Loans or such Delayed Draw Term Loans, as applicable, so prepaid, if such prepayment occurs on or after the first anniversary of the Closing Date and prior to the second anniversary of the Closing Date and (z) 0.00% of the aggregate principal amount of such Initial Term Loans or such Delayed Draw Term Loans, as applicable, so prepaid, if such prepayment occurs on or after the second anniversary of the Closing Date.
(ii) Any prepayment of all or any portion of the 2020 Delayed Draw Term Loans in connection with (i) any voluntary prepayment pursuant to Section 2.05(a)(i) (excluding, for the avoidance of doubt, any reduction of 2020 Delayed Draw Term Loans in connection with a permitted assignment or buyback pursuant to Section 2.05(a)(v), Section 10.07(k) or Section 10.07(l)), (ii) any mandatory prepayment pursuant to Section 2.05(b)(iii) and (iii) any Lender being replaced pursuant to Section 3.07(a)(iii) for failure to consent to a Permitted Repricing Amendment shall, in each case, be accompanied by a prepayment premium equal to (x) 5.00% of the aggregate principal amount of such 2020 Delayed Draw Term Loans so prepaid, if such prepayment occurs prior to the first anniversary of the Amendment No. 1 Effective Date, (y) 1.00% of the aggregate principal amount of such 2020 Delayed Draw Term Loans so prepaid, if such prepayment occurs on or after the first anniversary of the Amendment No. 1 Effective Date and prior to the second anniversary of the Amendment No. 1 Effective Date and (z) 0.00% of the aggregate principal amount of such ...
Call Protection. (i) If all or any part of the principal balance of any Term Loan is paid on or prior to the third anniversary of the Closing Date for any reason (including, but not limited to, whether voluntary or mandatory (other than, for the avoidance of doubt, required amortization payments pursuant to Section 2.11 and mandatory prepayments required pursuant to Sections 2.13(e) and certain prepayments pursuant to the provisions of Section 2.13(g)), and whether before or after acceleration of the Obligations or the commencement of any Insolvency Proceeding, but in any event (A) including any such prepayment in connection with (I) a Change of Control, (II) an acceleration of the Obligations as a result of the occurrence of an Event of Default, (III) foreclosure and sale of, or collection of, the Collateral, (IV) sale of the Collateral in any Insolvency Proceeding, (V) the restructure, reorganization, or compromise of the Obligations by the confirmation of a plan of reorganization or any other plan of compromise, restructure, or arrangement in any Insolvency Proceeding, or (VI) the termination of this Agreement for any reason, and (B) excluding any prepayment that is required to be made pursuant to the provisions of Sections 2.11, 2.13(e) and certain prepayments pursuant to the provisions of 2.13(g) hereof), Borrowers shall pay to Administrative Agent, for the benefit of all Lenders entitled to a portion of such prepayment a premium as liquidated damages and compensation for the costs of being prepared to make funds available hereunder with respect to the Loans (the “Applicable Prepayment Premium”) equal to (1) with respect to prepayments made on or after the Closing Date but prior to the first anniversary of the Closing Date, the Make-Whole Premium or (2) thereafter, the amount of such prepayment multiplied by (x) two percent (2%), with respect to prepayments made after the first anniversary of the Closing Date but on or prior to the second anniversary of the Closing Date, (y) one percent (1%), with respect to prepayments made after the second anniversary of the Closing Date but on or prior to the third anniversary of the Closing Date, and (z) zero percent (0%), with respect to prepayments made after the third anniversary of the Closing Date. Notwithstanding anything to the contrary contained in this Agreement, to the extent that any Non-Consenting Lender is replaced pursuant to Section 2.22 due to such Lender’s failure to approve a consent, waiver, or amendment, such N...
Call Protection. In the event that, on or prior to the first anniversary of the Effective Date, the Borrower (x) makes any prepayment of Tranche B-1 Loans (including pursuant to Section 5.1(c) or 5.2(b) of the Credit Agreement) in connection with any Repricing Transaction or (y) effects any amendment, supplement or modification hereof or hereto resulting in a Repricing Transaction, the Borrower shall pay to the Administrative Agent, for the ratable account of the Tranche B-1 Lenders, without duplication, (I) in the case of clause (x), a prepayment premium of 1.0% of the amount of the Tranche B-1 Loans being prepaid and (II) in the case of clause (y), a payment equal to 1.0% of the aggregate amount of the applicable Tranche B-1 Loans outstanding immediately prior to such amendment.
Call Protection. In the event all or any portion of the Term Loans are repaid or prepaid or the Total Revolving Commitments are terminated or reduced (including pursuant to Section 2.23(b) as a result of, or in connection with, any Lender not agreeing or otherwise consenting to any waiver, consent or amendment that reduces the all-in yield of the Loans), repriced or effectively refinanced through any amendment of the Term Loans or the Revolving Commitments or accelerated for any reason (including following an Event of Default), other than pursuant to 2.10(h), prior to the second anniversary of the Closing Date, such repayment, prepayment, repricing, acceleration, termination or reduction:
Call Protection. (i) If, on or prior to July 19, 2008, (the “Make-Whole Expiry Date”), either (x) Borrower prepays all or any part of the principal balance of any Tranche A Term Loan and/or (y) any Commitment is reduced or terminated, in each case for any reason (including, without limitation, (i) pursuant to any mandatory prepayment pursuant to Section 2.13 (other than any mandatory prepayments required by Sections 2.13(a) (solely with respect to the Asset Sales of branches in the ordinary course of business and the real property (including the buildings and fixtures) located Laredo, Texas), 2.13(e) and 2.13(i)), (ii) in connection with a foreclosure and sale of the Collateral, (iii) in connection with the acceleration of the Obligations after the occurrence and during the continuation of an Event of Default, (iv) in connection with the restructure, reorganization, or compromise of the Obligations by the confirmation of a plan of reorganization or any other plan of compromise, restructure, or arrangement in any Insolvency Proceeding, or (v) voluntarily, whether as a result of an acceleration following an Event of Default or otherwise), then Borrower shall pay to Administrative Agent, for the benefit of all Lenders entitled to a portion of such prepayment or reduction, as set forth in a side agreement among Administrative Agent and Lenders, an amount equal to the sum of the present value at such time of (a) all interest payments or accrued interest that would have accrued on the principal amount of the Loans and/or Commitments repaid, prepaid, reduced or terminated or deemed repaid, prepaid, reduced or terminated from the Prepayment Date through to the Make-Whole Expiry Date plus (b) the Prepayment Premium that would be applicable if such prepayment, reduction or termination were to occur on the day after the Make-Whole Expiry Date plus (c) in the case of a repayment or prepayment, the principal amount of Loans so repaid or prepaid, or deemed repaid or prepaid, in each of clauses (a), (b) and (c) above, computed using a discount rate equal to the Treasury Rate plus 50 basis points, minus (d) the principal amount of the Loans so repaid or prepaid (such difference, the “Make-Whole Amount”). For purposes of this calculation: (i) such interest payment or accrued interest shall be projected by using the interest rate then in effect (including, to the extent applicable, the provisions of Section 2.9 of the Credit Agreement) from the date of prepayment or repayment through the Ma...
Call Protection. In the event that any Repricing Event occurs on or prior to the six month anniversary of the Closing Date, the Borrower shall pay to the Administrative Agent, for the benefit of the Closing Date Term Loan Lenders, concurrently with such Repricing Event, a premium in an amount equal to 1.00% of the outstanding principal amount of the Closing Date Term Loans subject to such Repricing Event.
Call Protection. In the event that prior to the first anniversary of the Third Amendment Effective Date, the Borrower makes any prepayment of all or part of the Existing Term B Dollar Loans in connection with any replacement or refinancing of the Existing Term B Dollar Loans with or from the proceeds of a new term loan having an “Applicable Eurocurrency Margin” (or other equivalent term) that, at any time prior to the first anniversary of the Third Amendment Effective Date is, or could upon satisfaction of certain conditions be, less than the Applicable Eurocurrency Margin for the Existing Term B Dollar Loans, the Borrower shall pay a prepayment fee to Administrative Agent for the benefit of the Existing Term B Dollar Lenders equal to 1.0% of the principal amount of the Existing Term B Dollar Loans so refinanced, provided that the foregoing prepayment fee shall not be applicable if such prepayment is made in connection with the termination of all of the Revolving Commitments and a repayment of all of the Loans hereunder. Solely for purposes of this Section 4.5(c), any amendment, restatement or other modification to this Agreement prior to the first anniversary of the Third Amendment Effective Date that reduces the Applicable Eurocurrency Margin applicable to the Existing Term B Dollar Loans shall be treated as if the Existing Term B Dollar Loans were refinanced in full.
Call Protection. If Company voluntarily reduces or terminates any Revolving Commitments as provided in Section 2.9(b), Company shall pay to Paying Agent, on behalf of the Lenders whose Revolving Commitments were terminated or reduced, on the date of such reduction or termination, the amounts (if any) described in the Undertakings Agreement.