Net Spread Sample Clauses
The Net Spread clause defines the difference between two interest rates or yields, typically in the context of financial transactions such as loans, swaps, or securities. In practice, it specifies how the spread is calculated—often as the difference between a benchmark rate (like LIBOR or SOFR) and the rate paid or received by a party. For example, if a loan is priced at a benchmark rate plus a fixed margin, the net spread represents the total cost above the benchmark. This clause ensures transparency in how interest or return is determined, helping both parties understand the true cost or benefit of the transaction and reducing the risk of disputes over payment calculations.
Net Spread. Subject to Section 4.3.6 and except as otherwise expressly provided in this Agreement, the net spread (the “Net Spread”) applicable for any Base Rate Borrowing Advance Tranche shall be as set forth in Schedule 4.2.3. With respect to the exercising of the First Option to Extend or Second Option to Extend, the Net Spread applicable for any Base Rate Borrowing Advance Tranche during such extended term period shall be determined by Lender in its sole discretion and communicated to Borrower (provided, that Lender will communicate indicative (but not final) Net Spreads for such extension period to Borrower at least 2 Business Days prior to the Scheduled Maturity Date, First Extended Maturity Date or Second Extended Maturity Date, as applicable). With respect to the exercising of an Expansion Option, the Net Spread applicable for any Base Rate Borrowing Advance Tranche for such expanded amount of the Sponsor Borrower Loan shall be determined by Lender in its sole discretion and communicated to Borrower and Sponsor (provided, that Lender will communicate indicative (but not final) Net Spreads for such expansion to Borrower and Sponsor at least 2 Business Days prior to the Expansion Option Date), and the final Net Spread for such expanded amount of the Sponsor Borrower Loan shall be blended together with the Net Spread then in effect as determined by Lender. Lender and Borrower shall evidence any new or blended applicable Net Spread pursuant to this Section 4.2.3, by executing a confirmation substantially in the form attached hereto as Schedule 2.3.
Net Spread. The Net Spread — Senior for the Eligible Contracts which are Transferred Contracts shall not be less than 13.5% and the Net Spread – All-In for the Eligible Contracts which are Transferred Contracts shall not be less than 0%;
Net Spread. Paragraph (j) of Exhibit V to the Agreement is amended to read as follows: "