LIBOR Floor Clause Samples
A LIBOR Floor clause sets a minimum interest rate, based on the London Interbank Offered Rate (LIBOR), that must be applied to a loan or financial instrument. In practice, this means that even if the LIBOR benchmark falls below the specified floor rate, the interest charged will not decrease further and will remain at the floor level. This clause is commonly used in floating-rate loan agreements to protect lenders from receiving excessively low interest payments if market rates decline sharply. Its core function is to ensure a minimum return for the lender, thereby managing the risk of falling interest rates.
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LIBOR Floor. Section 5.1 of the Repurchase Agreement is amended by deleting the proviso clause at the end thereof and by substituting in lieu thereof the following: ; provided that, notwithstanding the foregoing, the Pricing Rate will not in any event be less than 2.75%.
LIBOR Floor. Section 5.1 of the Repurchase Agreement is amended by deleting the phrase “3.75%” as it appears therein and substituting the phrase “3.25%” in lieu thereof.
LIBOR Floor. During the Permitted Draw Period, at no time and under no circumstance shall the Eurodollar Rate be less than 0.250% per annum with respect to any Eurodollar Rate Advance that has not been identified by the Borrower in accordance with the terms of the 2017 Credit Agreement as being subject to a Guaranteed Hedge Agreement.
LIBOR Floor. During the Waiver Period, at no time and under no circumstance shall the Eurodollar Rate be less than 0.250% per annum with respect to any Eurodollar Rate Advance that has not been identified by the Borrower in accordance with the terms of the 2016 Term Loan Agreement as being subject to a Guaranteed Hedge Agreement.
LIBOR Floor. (a) The definition of LIBOR Rate in the Note is hereby deleted in its entirety and replaced with the following:
LIBOR Floor. Section 5.1 of the Repurchase Agreement is amended by the proviso clause at the end thereof and substituting in lieu thereof the following: ; provided that, notwithstanding the foregoing, the Pricing Rate will not in any event be less than three and three-quarters percent (3.75%) (or with respect to the portion of the aggregate Purchase Price of Purchased Loans that, as of any date of determination, exceeds $150,000,000, four and one-quarter percent (4.25%).