Existing Indebtedness Refinancing Clause Samples
The Existing Indebtedness Refinancing clause outlines the terms under which a borrower may use new financing to pay off or replace outstanding debt obligations. Typically, this clause specifies which debts are eligible for refinancing, the timing and process for repayment, and any conditions or consents required from lenders. By clearly defining how existing loans can be refinanced, the clause facilitates smoother transitions between financing arrangements and helps prevent disputes over repayment priorities or lender rights.
Existing Indebtedness Refinancing. The Existing Indebtedness Refinancing shall have been consummated prior to, or shall be consummated substantially concurrently with, the initial Borrowing under the Credit Facilities.
Existing Indebtedness Refinancing. The Existing Indebtedness Refinancing shall have been consummated prior to, or shall be consummated substantially concurrently with, the initial Borrowing under the Credit Facilities and, to the extent applicable, all security interests, commitments and guarantees relating thereto shall have been or shall be substantially concurrently terminated and released and (y) the Senior Notes shall have been issued, in each case, pursuant to documentation reasonably satisfactory to the Administrative Agent.
Existing Indebtedness Refinancing. The Administrative Agent shall have received evidence reasonably satisfactory to it that the Existing Indebtedness Refinancing has been consummated, or shall be consummated substantially concurrently, on the Closing Date.
Existing Indebtedness Refinancing. Add a new covenant providing that, prior to or substantially concurrently with the initial funding of the New Tranche B Term Loans on the Restatement Effective Date, (I)(a) all commitments under the Target’s existing credit agreement shall have been terminated; (b) all loans, interest and other amounts accrued or owing thereunder shall have been repaid in full (other than the Permitted ▇▇▇▇▇ Letters of Credit (as defined below)); and (c) all Guarantees and Liens granted in respect thereof shall have been released and the terms and conditions of any such release shall be satisfactory to the Administrative Agent and (II) in the event the aggregate principal amount of Senior Bridge Loans, Senior Notes and New Tranche B Term Loans exceeds an amount necessary to consummate the Acquisition and pay fees and expenses related thereto as determined by the Borrower in its reasonable discretion, the Borrower shall use the proceeds of such excess to repay Revolving Credit Loans then outstanding (without a corresponding reduction in commitments) substantially concurrently with the funding of the New Tranche B Term Loans.
1. Lien Covenant (Section 7.01):
a. Increase the general lien basket from $35,000,000 to $75,000,000 and revise the basket so that it permits Liens securing obligations generally (rather than merely Indebtedness) (clause (z)).
b. Add customary baskets in respect of (i) Refinancing Debt and (ii) Incremental Equivalent Debt, in each case subject to reasonably satisfactory intercreditor arrangements.