Minimum Spread Payments Clause Samples
The Minimum Spread Payments clause establishes a baseline amount of interest or return that must be paid on a financial instrument, regardless of fluctuations in the underlying reference rate. In practice, this means that even if market rates fall below a certain threshold, the lender or investor is guaranteed to receive at least the minimum spread specified in the agreement. This clause ensures a predictable minimum income for the payee, protecting them from periods of unusually low interest rates and providing financial stability.
Minimum Spread Payments. On each day specified as a “Minimum Spread Payment Date” (each, a “Minimum Spread Payment Date”) in the Minimum Spread Payment Table below, the Borrower shall pay to the Administrative Agent for the account of the Lenders a fee (each such fee, a “Minimum Spread Payment”) in an amount equal to the excess (if any) of:
(1) the sum of:
(A) the product of:
Minimum Spread Payments. On each day specified as a “Minimum Spread Payment Date” (each, a “Minimum Spread Payment Date”) in the Minimum Spread Payment Table below, the Borrowers shall pay to the Administrative Agent for the account of the Lenders a fee (each such fee, a “Minimum Spread Payment”) in an amount equal to the excess (if any) of:
(1) the product of:
(A) the Weighted Average U.S. Dollar Spread with respect to such Minimum Spread Payment Date;
(B) the Target Percentage specified in the table below for such Minimum Spread Payment Date;
(C) the Adjusted Maximum USD Facility Amount; and
(D) the number of days in the related Minimum Spread Calculation Period divided by 360;
(2) the sum of:
(A) the Dollar Equivalents of the aggregate amount of interest paid on the Loans (determined as if the Floating Rates were equal to zero, with the Dollar Equivalent being determined as of the date of each such payment of interest) from the previous Minimum Spread Payment Date (or the Closing Date in the case of the first Minimum Spread Payment Date) to but excluding such Minimum Spread Payment Date; and
(B) to the extent that it has not previously been applied to reduce the Minimum Spread Payment on any previous Minimum Spread Payment Date, the amount by which the amount determined under clause (2)(A) above on any previous Minimum Spread Payment Date exceeded the amount determined under clause (1) above on such previous Minimum Spread Payment Date. 1. First Payment Date 0 2. Second Payment Date 25.0 % 3. Third Payment Date 37.5 % 4. Fourth Payment Date 50 % 5. Fifth Payment Date 75 % 6. Sixth Payment Date 87.5 %
Minimum Spread Payments. On each day specified as a “Minimum Spread Payment Date” (each, a “Minimum Spread Payment Date”) in the Minimum Spread Payment Table below, the Borrower shall pay to the Administrative Agent for the account of the Lenders a fee (each such fee, a “Minimum Spread Payment”) in an amount equal to the excess (if any) of:
(1) the sum of:
(A) the product of:
(i) the Spread;
(ii) the percentage specified in the table below for such Minimum Spread Payment Date (or, with respect to the first two
(2) Minimum Spread Payment Dates following any Permitted Material Securitization Date, the Alternative Percentage) (the percentage in either case, the “Target Percentage”);