LIBOR Spread Clause Samples
The LIBOR Spread clause defines the additional interest rate, expressed as a percentage, that is added to the London Interbank Offered Rate (LIBOR) to determine the total interest rate payable on a loan or financial instrument. In practice, this spread compensates the lender for credit risk and other costs, and it is typically negotiated based on the borrower's creditworthiness and market conditions. By specifying the exact amount to be added to the LIBOR benchmark, this clause ensures transparency in how interest payments are calculated and helps both parties understand their financial obligations.
LIBOR Spread. The LIBOR Spread to be used in calculating the Applicable LIBOR Rate with respect to interest accruing on the Line of Credit and the Term Loan shall be determined as follows: >3.0 2.60 % 0.500 % >2.5 < 3.0 2.25 % 0.500 % >2.0 <2.5 2.00 % 0.375 % >1.5 <2.0 1.75 % 0.375 % <1.5 1.50 % 0.250 %
LIBOR Spread. The term “
LIBOR Spread. In each case, effective from the date on which the Agent receives the applicable Compliance Certificate, (i) at any time when the Leverage Ratio calculated as of the end of the previous quarter was equal to or less than .25, three-quarters of one percent (.75%); (ii) at any time when the Leverage Ratio calculated as of the end of the previous quarter was greater than .25 but less than .50, one percent (1.0%); (iii) at any time when the Leverage Ratio calculated as of the end of the previous quarter was equal to or greater than .50 but equal to or less than .75, one and one-quarter percent (1.25%), and (iv) at any time when the Leverage Ratio calculated as of the end of the previous quarter was greater than .75%, one and one-half percent (1.50%), provided that, from and after the date on which Borrower consummates an Equity Infusion, the LIBOR Spread will be one-quarter of one percent (.25%) less than it otherwise would be in accordance with clauses (i) through (iv) above; provided further that any reduction in the LIBOR Spread that would otherwise occur pursuant to this paragraph shall not be effective during any time when a Default or an Event of Default has occurred or is continuing.
LIBOR Spread. Base Rate Spread 1 Ba3 or better and BB- or better 475 bps 375 bps 2 Not Category 1, but at least Ba3 or better or BB- or better 500 bps 400 bps 3 Not Category 1 or 2, but at least B1 or better and B+ or better 550 bps 450 bps 4 Not Category 1, 2 or 3, but at least B3 or better and B- or better 600 bps 500 bps 5 Not Category 1, 2, 3 or 4, or unrated 725 bps 625 bps