Currency Hedging Clause Samples
A Currency Hedging clause establishes the terms under which parties manage the risk of currency fluctuations in a contract involving payments in foreign currencies. Typically, this clause outlines the methods for hedging, such as using forward contracts or options, and specifies which party is responsible for arranging and bearing the costs of the hedge. Its core function is to protect both parties from adverse movements in exchange rates, thereby providing financial certainty and stability throughout the duration of the agreement.
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Currency Hedging. At all times and until repayment of all Additional Senior Debt, the Obligors will utilize currency hedging techniques to hedge for a term at least equal to the lesser of, (A) five years; and (B) the period to 30 April 2008, on a weighted average basis, currency risk on a minimum of 50% of all Additional Senior Debt denominated in a currency other than Canadian Dollars in excess of the Equivalent Amount in Canadian Dollars of U.S. $25,000,000.
Currency Hedging. The Issuer and its Subsidiaries engage in currency hedging solely for purposes of hedging and not for speculative purposes.
Currency Hedging. (a) The parties acknowledge and agree that (i) Parent and PSP are responsible for converting their proportionate share of each tranche (“Tranche”) of United States dollar denominated debt that constitutes the Financing to be funded at the Telesat Closing (i.e., term loans, bridge notes, senior notes), into Canadian dollars to pay the purchase price in respect of the Purchased Shares at the Telesat Closing, and (ii) Parent’s and PSP’s proportionate share shall equal 65.37% and 34.63%, respectively. The parties further acknowledge and agree that subject to PSP’s compliance with Section 3.6(a) of the Ancillary Agreement, the basis swap transaction (the “Basis Swap”) entered into on December 27, 2006 between ▇▇▇▇▇▇ ▇▇▇▇▇▇▇ Capital Services Inc. and Skynet shall be deemed for purposes of this Section 4.20 to be a transaction entered into by Parent and PSP to hedge their proportionate share of the Term Loan B Tranche of the Financing. (b) The parties further acknowledge and agree that Parent and PSP may choose to hedge the foregoing amounts or leave them unhedged, in which case, for purposes of determining the Tranche Differential Rate, the exchange rate of any unhedged Tranche or unhedged portion of any Tranche shall be the actual exchange rate at which Canadian dollars are purchased to fund that portion of the purchase price at the Telesat Closing or as to any portion of such Tranche for which there was no purchase of Canadian dollars, the Closing Date Exchange Rate. ▇▇▇▇▇▇ procured by an Affiliate of Parent shall be deemed to be ▇▇▇▇▇▇ procured by Parent for the purposes of this Agreement.
Currency Hedging. (a) in the case of the Borrower, in the event that the Currency Swap Agreement is terminated in whole prior to repayment in full of the Initial Term Advances, the Borrower shall use its best efforts to enter into a replacement currency swap agreement with a counterparty having the Minimum Short-Term Ratings on terms substantially equivalent to the Currency Swap Agreement and procure that the replacement swap counterparty becomes a party to the Security Trust Deed, unless the Rating Agencies confirm in writing to the Borrower and the Borrower Security Trustee that then current ratings of the Notes will not be subject to downgrade, withdrawal or suspension or put on negative creditwatch as a consequence of the termination of the Currency Swap Agreement without entry into a replacement currency swap agreement; and
(b) other than (for the avoidance of doubt) as a result of a Permitted Disposal, the Borrower shall not terminate the Currency Swap Agreement (including where it is entitled to do so under the terms of the Currency Swap Agreement) without the prior written consent of the Borrower Security Trustee.
Currency Hedging. (a) For the purposes of calculating the Total Hedging Differential, the parties acknowledge and agree that Parent and PSP have entered into the following hedge transactions:
(i) Parent and PSP have hedged $594,000,000 and $316,000,000, respectively, of the $910,000,000 of unsecured debt tranche under the Financing (the “Note Tranche”); and
(ii) Parent has hedged $103,433,500 of the $386,000,000 of original term loan B-1 under the Financing that is not hedged by the Basis Swap (the “Remaining Term Loan B Tranche”).
(b) Each of the Note Tranche and the Remaining Term Loan Tranche is a Tranche for purposes of calculating the Total Hedging Differential pursuant to Section 2.6 hereof. For purposes of this Section 4.20, ▇▇▇▇▇▇ procured by an Affiliate of Parent shall be deemed to be ▇▇▇▇▇▇ procured by Parent.”
Currency Hedging. The Borrower will, within the earlier of (a) one year after the Effective Date and (b) forty-five days after the Leverage Ratio exceeds 2.50:1 at any time after the Effective Date, enter into, and maintain at all times thereafter, currency Hedging Agreements with respect to Debt of the Borrower denominated in a currency other than Pesos (excluding the Letseb Note), and limiting the exchange rate exposure of the Borrower between Pesos and such other currency for at least five years (“Qualifying ▇▇▇▇▇▇”), such that after giving effect thereto and at all times thereafter, an amount of Debt of the Borrower and its Material Subsidiaries equal to (a) 100% of the aggregate outstanding principal amount of the Loans plus (b) 50% of the aggregate outstanding principal amount of all other Debt for borrowed money of the Borrower and its Material Subsidiaries (determined on a consolidated basis), is either (a) denominated in Pesos or (b) subject to Qualifying ▇▇▇▇▇▇.
Currency Hedging. The Borrower shall enter into a Hedging Letter (in form and substance acceptable to the Administrative Agent) with a Hedging Bank (acceptable to the Administrative Agent) in relation to any non-Dollar earnings under a Rig Drilling Contract where total non-Dollar earnings over the term of the relevant Rig Drilling Contract are more than twenty per cent. (20%) of the total value of that Rig Drilling Contract.
Currency Hedging. In addition to the covenant set forth in Section 5.18 hereof, Guarantor covenants that it and its Subsidiaries will maintain the same type of currency transaction exposure practices as are maintained on the date hereof.