Incremental B Term Loan Commitments Clause Samples
The Incremental B Term Loan Commitments clause allows a borrower to increase the amount of its existing B term loan facility by obtaining additional commitments from new or existing lenders. In practice, this clause sets out the conditions under which the borrower can request these incremental loans, such as minimum amounts, required consents from lenders, and compliance with financial covenants. Its core function is to provide the borrower with flexibility to access additional financing under the same credit agreement, thereby streamlining the process and avoiding the need for a separate loan arrangement.
Incremental B Term Loan Commitments. (a) So long as no Default or Event of Default then exists or would result therefrom, the Company shall, in consultation with the Administrative Agent, have the right to request on one (and, in the circumstances contemplated by clause (iv) below, a second) occasion on and after the Fifth Amendment Effective Date that one or more Banks (and/or one or more other Persons which would become Banks as provided below) provide Incremental B Term Loan Commitments and, subject to the terms and conditions contained in this Agreement, make Incremental B Term Loans pursuant thereto, it being understood and agreed, however, that (i) no Bank shall be obligated to provide an Incremental B Term Loan Commitment as a result of any such request by the Company, and until such time, if any, as such Bank has agreed in its sole discretion to provide an Incremental B Term Loan Commitment and executed and delivered to the Administrative Agent an Incremental Term Loan Commitment Agreement as provided in clause (b) of this Section 1.15, such Bank shall not be obligated to fund any Incremental B Term Loans, (ii) any Bank (or, in the circumstances contemplated by clause (iv) below, any other Person which is an Eligible Transferee) may so provide an Incremental B Term Loan Commitment without the consent of any other Bank, (iii) the provision of Incremental B Term Loan Commitments pursuant to this Section 1.15 shall be in a minimum aggregate amount (for all Banks (including, in the circumstances contemplated by clause (iv) below, Eligible Transferees who would become Banks)) of at least $5,000,000, and a maximum aggregate principal amount not to exceed $13,000,000, (iv) if, within 10 Business Days after the Company has requested the then existing Banks (other than Defaulting Banks) to provide Incremental B Term Loan Commitments pursuant to this Section 1.15 the Company has not received Incremental B Term Loan Commitments in an aggregate amount equal to that amount of Incremental B Term Loan Commitments which the Company desires to obtain pursuant to such request (as set forth in the notice provided by the Company as provided below), then the Borrower may, with the consent of the Administrative Agent (which consent shall not be unreasonably withheld or delayed), request Incremental B Term Loan Commitments from Persons which would qualify as Eligible Transferees hereunder in an aggregate amount equal to such deficiency (and with the fees to be paid to such Eligible Transferee to be no great...