Interest Rate Spread Sample Clauses
An Interest Rate Spread clause defines the difference between two interest rates, typically specifying how much higher or lower one rate is compared to a benchmark or reference rate. In practice, this clause is used in loan agreements or financial contracts to determine the total interest rate a borrower will pay, such as setting the loan rate at a fixed percentage above the LIBOR or SOFR rate. Its core function is to provide transparency and predictability in interest calculations, ensuring both parties understand how the applicable rate is determined and protecting against unexpected fluctuations in market rates.
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Interest Rate Spread. The Undersigned shall pay a basis -------------------- point spread under this Note on the LIBOR Rate option based on the Undersigned's financial performance as measured by the Cash Flow Ratio (as defined in the Credit Agreement) and effective on the first day following receipt of the Undersigned's quarterly financial statements and continuing until receipt of the Undersigned's quarterly financial statements for the following fiscal quarter: LIBOR Rate Plus Cash Flow Ratio Basis Point Spread --------------- ------------------------------- Greater than 2.00 to 1.00 LIBOR + 100 b.p. Less than or equal to 2.00 to 1.00 but greater than or equal to LIBOR + 125 b.p. 1.50 to 1.00
(c) The definition of Maturity Date set forth in paragraph 12 of the Supplement shall be amended by replacing the date May 30, 1998 with May 30, 1999.
(d) The Note shall be amended to reflect that references in the Note to the "Credit Agreement" shall be references to the Revolving Line of Credit Agreement as amended by the Credit Amendment and as may be still further amended, modified or supplemented from time to time.
Interest Rate Spread. If at any time the differential between Borrower's gross yield (including the impact of any discount retained by Borrower) on Borrower's portfolio of Contracts and the
Interest Rate Spread. The Undersigned shall pay a basis point spread -------------------- under this Note on its LIBOR Rate Option based on the Undersigned's financial performance based on its Cash Flow Ratio (as defined in the Credit Agreement) and effective on the first day following receipt of the Undersigned's quarterly financial statements and continuing until receipt of the Undersigned's quarterly financial statements for the following fiscal quarter: Cash Flow Ratio LIBOR Rate Plus --------------- Basis Point Spread ------------------------------ Less than 2.50 to 1.00 LIBOR + 150 b.p. Greater than or equal to 2.50 to 1.00, But less than 3.50 to 1.00 LIBOR + 125 b.p. Greater than or equal to 3.50 to 1.00 LIBOR + 100 b.p.
Interest Rate Spread. From and after the Modification Effective Date, the Spread is hereby increased from 2.50% to 3.50%. Accordingly, from and after the Modification Effective Date, the Interest Rate for any Interest Accrual Period shall be the sum of 3.50% plus the greater of LIBOR for such Interest Accrual Period and 4.95% (or, when applicable pursuant to the Note or any other Loan Document, the Default Rate).
Interest Rate Spread. The Undersigned's shall pay a basis point -------------------- spread under this Note on the LIBOR Rate option based on the Undersigned's financial performance based on its Cash Flow