Fixed Rate Conversion Clause Samples
The Fixed Rate Conversion clause establishes the terms under which a variable interest rate can be converted to a fixed rate within a contract. Typically, this clause outlines the timing, process, and any conditions or fees associated with making the switch, such as requiring notice to the lender or specifying the new fixed rate based on prevailing market rates. Its core practical function is to provide parties with the flexibility to lock in a stable interest rate, thereby reducing exposure to future interest rate fluctuations and offering greater predictability in financial planning.
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Fixed Rate Conversion. (i) The Administrative Agent may, with the consent or at the direction of all Initial Tranche B-3 Term Lenders, (A) deliver to the Borrower a written notice (a “Fixed Rate Conversion Notice”) substantially in the form of Exhibit O-1 hereto with respect to all or a portion of the Tranche B-3 Term Loans (such portion of the Tranche B-3 Term Loans, from and after the Fixed Rate Conversion Effective Date, the “Fixed Rate Tranche B-3 Term Loans”) and (B) at any time during the forty-five (45) days following delivery of a Fixed Rate Conversion Notice, deliver to the Borrower a written notice (a “Fixed Rate Conversion Effective Date Notice”) substantially in the form of Exhibit O-2 hereto, specifying the Fixed Rate Conversion Effective Date (and, if the Administrative Agent shall not deliver a Fixed Rate Conversion Notice during such period, such Fixed Rate Conversion Notice shall be deemed revoked); provided, that no Fixed Rate Conversion Notice may be delivered with respect to any portion of the Tranche B-3 Term Loans for which a Monthly Interest Notice has been given in accordance with Section 2.08(d) below and no Fixed Rate Conversion Notice may be given within thirty (30) days of the date on which a prior Fixed Rate Conversion Notice has been revoked. If the Fixed Rate Tranche B-3 Term Loans shall be less than all outstanding Tranche B-3 Term Loans, each Tranche B-3 Term Lender shall (from and after the Fixed Rate Conversion Effective Date) be deemed to hold its ratable share of the Fixed Rate Tranche B-3 Term Loans and remaining Tranche B-3 Term Loans according to its Pro Rata Share. The Administrative Agent may, with the consent or at the direction of all Initial Tranche B-3 Term Lenders, revoke or rescind any Fixed Rate Conversion Notice. No more than one Fixed Rate Conversion Notice may be outstanding at any time and, from and after the Fixed Rate Conversion Effective Date for any Tranche B-3 Term Loans, no further Fixed Rate Conversion Notices may be given for the remaining Tranche B-3 Term Loans.
Fixed Rate Conversion. During the Initial Term, provided that Tenant is not in default hereunder and at least five years remain during the Initial Term, Tenant shall have the right to a one-time conversion of the Capitalization Rate to a fixed rate (if based on LIBOR) to be used during the remainder of the Initial Term and during the Renewal Terms. The fixed Capitalization Rate will be equal to the greater of (i) Capital Automotive REIT’s (“CARS”) credit spread plus a 225 basis point operating spread plus the current coupon on the Ten (10) year US Treasury or (ii) %. An indication of the current credit spread for CARS is BBB rated Commercial Mortgage Backed Securities with a maturity matching the remaining lease Term. In order to convert the Capitalization Rate to a fixed rate, Tenant must give Landlord irrevocable written notice electing and designating a business day to be a conversion date at least thirty (30) days from the date of notice. All fees and expenses incurred by the Landlord related to the rate lock shall be paid by Tenant or reimbursed to the Landlord.
Fixed Rate Conversion. During the Initial Term, provided that Tenant is not in default hereunder and at least five years remain during the Initial Term, Tenant shall have the right to a one-time conversion of the Capitalization Rate to a fixed rate to be used during the remainder of the Initial Term and during the Renewal Terms. The fixed Capitalization Rate will be equal to the greater of (i) Capital Automotive REIT's ("CARS") credit spread plus a 225 basis point operating spread plus the current coupon on the Ten (10) year US Treasury or (ii) 10.25
Fixed Rate Conversion. At the option of the City on behalf of the Agency, the 2010 Bonds of a Series may be converted to be payable at a Fixed Rate until their final maturity or earlier redemption (provided that a firm underwriting commitment for such 2010 Bonds has been obtained). Any such conversion shall be made as follows:
(i) The Fixed Rate Date shall be an Interest Payment Date for the Variable Rate last in effect prior to the conversion to a Fixed Rate.
(ii) The City on behalf of the Agency shall give written notice of any such conversion to the Fiscal Agent, the applicable Remarketing Agent, the Tender Agent and the related Credit Provider not fewer than forty-five (45) days prior to the proposed Fixed Rate Date. Such notice shall specify the proposed Fixed Rate Date.
(iii) Notice of conversion and mandatory tender shall be given no less than fifteen (15) days prior to the proposed Fixed Rate Date by first class mail by the Fiscal Agent to the Holders of all Outstanding 2010 Bonds of such Series as their addresses appear on the registration books of the Fiscal Agent on the date the Fiscal Agent receives the notice referred to in paragraph (ii) above. The notice of conversion and mandatory tender mailed to Bondholders shall set forth the information required by Section 4.06(j).
(iv) No more than thirty-five (35) days nor less than five (5) days prior to the Fixed Rate Date, the applicable Remarketing Agent shall determine the Fixed Rate for the Series of 2010 Bonds to be converted to a Fixed Rate and provide the Fixed Rate for such Series to the Fiscal Agent as provided herein. Such Fixed Rate shall be the rate of interest on such Series of 2010 Bonds on and after the Fixed Rate Date and shall be the lowest rate of interest (not in excess of the maximum interest rate permitted by law) that, in the judgment of the applicable Remarketing Agent as of the date of determination and under prevailing market conditions, would cause such Series of 2010 Bonds to have a market value equal to the principal amount thereof plus interest accrued thereon to such date. Such determination shall be conclusive and binding upon the Agency, the City, the Fiscal Agent, the related Credit Provider, such Remarketing Agent and the Holders of such Series of 2010 Bonds. Not later than 4:00 p.m., New York City time on the date of the determination of such Fixed Rate, the applicable Remarketing Agent shall communicate such Fixed Rate by telex, telecopy or other similar electronic means of communicatio...
Fixed Rate Conversion. The term “