Changes in Applicable Margin Clause Samples
The "Changes in Applicable Margin" clause defines how and when the interest margin applied to a loan or credit facility may be adjusted. Typically, this clause outlines specific triggers or conditions—such as changes in the borrower's credit rating, financial covenants, or market benchmarks—that will result in an increase or decrease of the margin over the base interest rate. For example, if a borrower's creditworthiness improves, the applicable margin may decrease, reducing their interest payments. The core function of this clause is to ensure that the cost of borrowing accurately reflects the borrower's risk profile over time, thereby protecting the lender while incentivizing the borrower to maintain or improve their financial standing.
Changes in Applicable Margin. The Applicable Margin shall be adjusted as of the day that the Borrower’s annual and quarterly financial statements, and Compliance Certificate are delivered to the Bank pursuant to Sections 5.2a, 5.2b and 5.2c hereof.
Changes in Applicable Margin. With respect to Section 2.3(f)(i), 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 Lenders pursuant to Section 6.1 or 6.2 hereof, as the case may be, provided, however, that if such financial statements are not delivered to the Administrative Agent and the Lenders 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 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 Lenders. With respect to Section 2.3(f)(i) and (ii) 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 shall not be subject to downward adjustment and shall automatically revert to the Applicable Margins set forth in, (A) with respect to Section 2.3(f)(i), part A of the table in Section 2.3(f)(i) above, and (B) with respect to Section 2.3(f)(ii), part (a) of Section 2.3(f)(ii) above, in each case, until such time as such Event of Default is cured or waived.
Changes in Applicable Margin. Any change in Applicable Margin resulting from a change in the Debt/EBITDA Ratio for any Rolling Period shall become effective as follows: (a) in the case of a Floating Rate Loan, on the Adjustment Date immediately following such Rolling Period and (b) in the case of a Fixed Rate Loan, during each Interest Period for such Loan commencing on or after the Adjustment Date immediately following such Rolling Period.
Changes in Applicable Margin. The Applicable Margin shall be adjusted as of the first day of each Fiscal Quarter based upon the ratio of the Borrower's Consolidated Total Liabilities to the Borrower's Consolidated Tangible Net Worth as shown in the Compliance Certificate for the immediately preceding Fiscal Quarter.
Changes in Applicable Margin. The Applicable Margin shall be adjusted as ---------------------------- of the first day of each Fiscal Quarter based upon the ratio of the Borrower's Consolidated Total Indebtedness to EBITDA Ratio as shown in the Compliance Certificate for the immediately preceding Fiscal Quarter.
Changes in Applicable Margin. The Applicable Margin as at the Closing Date shall be determined in accordance with the table set forth in the definition of Applicable Margin (the “Applicable Margin Table”) and the Compliance Certificate delivered by Cognos to the Canadian Agent pursuant to Section 11.1(a)(iv). Thereafter, changes in the Applicable Margin shall take effect as of the third Business Day following the date Cognos delivers a Compliance Certificate to the Canadian Agent pursuant to Subsection 14.1.8(c) which, when delivered, discloses an Adjusted Total Debt/EBITDA Ratio which results in a different Applicable Margin in accordance with the Applicable Margin Table. The Applicable Margin applicable to all Loans outstanding on the date any such change takes effect and the Standby Fees will be adjusted immediately, but without retroactive effect. There will be no adjustments made with respect to outstanding Acceptances. Notwithstanding the foregoing: (i) if Cognos fails to deliver a Compliance Certificate to the Canadian Agent by the date required to do so under Subsection 14.1.8(c), the Adjusted Total Debt/EBITDA Ratio shall be deemed as from such date to be greater than 2.0:1 until such failure is cured, at which time the Applicable Margin shall thereafter be determined in accordance with the Applicable Margin Table and the relevant Compliance Certificate, but without any adjustments having retroactive effect, and (ii) if an Event of Default has occurred until such time as the Required Lenders have waived such Event of Default, the Applicable Margin applicable to all Types of Advances shall, to the extent permitted by applicable law, but without duplication to the provisions of Subsection 9.1.5, be increased by two percent (2%) per annum.