PIK Option Sample Clauses

PIK Option. All accrued interest payable on any interest payment date specified in Section 2.5(b) may, at the election of the Borrower, be (i) added to the outstanding principal amount of the Revolving Loan on which such interest accrued, (ii) converted into a Term Loan (which shall be deemed borrowed on such interest payment date) with a principal amount equal to the amount of such accrued interest, or (iii) paid in cash.

PIK Option. (a) At any time prior to the second anniversary of the Closing Date, the Borrower may, upon giving 10 Business Days’ notice in writing to the Lender as specified below and provided no Default or Event of Default is then existing, elect to defer the PIK Portion of the interest on the Loan (a “PIK Election”), in which case interest will thereafter until the PIK Election is terminated accrue on the Loan at the rate specified in clause (ii) of “Applicable Rate”. (b) If the Borrower so elects, the PIK Portion of the interest on the Loan due after the date of such notice will not be required to be paid in cash, and will instead be added to the Principal Amount quarterly on each Interest Payment Date. Following a PIK Election, the Cash Portion of the interest on the Loan will continue to be required to be paid in cash. The Borrower may at any time on five Business Days’ written notice to the Lender notify the Lender that it wishes to resume cash-only interest payments as of the next Interest Payment Date, in which case any PIK Election then in effect will terminate as of such Interest Payment Date and all interest will thereafter be required to be paid in cash and the Principal Amount and each PIK Portion will thereafter bear interest at the rate specified in clause (i) of “Applicable Rate”. The ability of the Borrower to make a PIK Election will terminate as of the second anniversary of the Closing Date and any PIK Election then in effect will terminate as of such date. (c) Notwithstanding Section 3.4, Borrower may prepay on any Interest Payment Date all or any portion of the PIK Portions without any prepayment penalty or premium.

PIK Option. The Issuer’s ability to make PIK Payments in respect of the Notes in lieu of paying interest in cash as set forth above (the “PIK Option”) may be exercised solely with respect to any Interest Period during the PIK Option Period, in up to the proportion of the total amount of interest due in such period as set forth in the table below: PIK Option Period Maximum Portion of Interest as PIK PIK Premium From (and including) the Issue Date through (and including) the second-year anniversary of the Issue Date 100.0% 50% of Cash Interest Rate From (but excluding) the second-year anniversary of the Issue Date through (and including) the third-year anniversary of the Issue Date 92.5% 50% of Cash Interest Rate From (but excluding) the third-year anniversary of the Issue Date through (and including) the fourth-year anniversary of the Issue Date 65.0% 50% of Cash Interest Rate PIK Option Period Maximum Portion of Interest as PIK PIK Premium From (but excluding) the fourth-year anniversary of the Issue Date through (and including) the fifth-year anniversary of the Issue Date 30.0% 75% of Cash Interest Rate In the event that the Issuer shall determine to pay PIK Interest with respect to any Interest Period, the Issuer shall deliver a notice (a “PIK Notice”) to the Trustee no later than the 15th calendar day immediately prior to the first day of such Interest Period, which notice shall state the total amount of cash interest to be paid on the Interest Payment Date in respect of such Interest Period and the amount of such interest to be paid as PIK Interest in accordance with the terms of the Notes, provided, however that with respect and for purposes of the first Interest Period, the Issuer shall deliver a PIK Notice to the Trustee within 15 Business Days after the Issue Date. The Trustee, on behalf of the Issuer, shall promptly upon receipt of the PIK Notice, and in no event later than the 10th calendar day immediately prior to the first day of such Interest Period, deliver a corresponding notice to the Holders. Interest on the Notes in respect of any Interest Period for which a PIK Notice is not delivered in accordance with the first sentence of this paragraph must be paid entirely in cash.

PIK Option. On each Interest Payment Date occurring after March 31, 2009, the Borrowers shall pay the total amount of interest due on such Interest Payment Date in cash, provided, that the Borrowers shall have the option (the “PIK Option”) to pay the interest due on and with respect to such Interest Payment Date by automatically having the Outstanding Principal Amount increase on such Interest Payment Date by an amount equal to the interest due for such Interest Payment Date. In the event Borrowers so elect to exercise the PIK Option, Borrowers shall provide written notice to the Agent at least three (3) Business Day prior to the relevant Interest Payment Date of (i) their election to exercise the PIK Option and (ii) the aggregate Outstanding Principal Amount after giving effect to the Principal Increase. In the event an Interest Payment Date falls on the same date as the Stated Termination Date, the entire amount of interest due on such date shall be paid in cash.

PIK Option. (i) With respect to payments of interest due on any Interest Payment Dates occurring prior to the Maturity Date, the Issuer shall have the option to make any such interest payments in whole or in part (i) in kind (such election, a “PIK Election” and such interest, “PIK Interest”) at a per annum rate equal to 1.00% plus the rate otherwise applicable to such Note as provided in Section 2.13(a) and Section 2.13(b) or (ii) in cash (such election, a “Cash Election”) at the rate applicable to such Note as provided in Section 2.13(a) and Section 2.13(b). With respect to any Interest Payment Date with respect to which the Issuer makes a PIK Election, such PIK Election shall be made by the Issuer delivering a written notice in the form attached hereto as Exhibit E (the “PIK Interest Election Notice”) to the Trustee (not later than 12:00 p.m., New York City time), at least ten (10) days prior to (x) with respect to SOFR Notes, the beginning of the applicable Interest Period during which such election shall apply, or (y) with respect to ABR Notes, the applicable Interest Payment Date upon and following which such election shall apply. If the Issuer fails to provide a PIK Interest Election Notice, the Issuer shall be deemed to have made a Cash Election. For the Interest Period beginning on the Closing Date, the Issuer makes a Cash Election and no PIK Interest Election Notice shall be required in connection with such election. (ii) PIK Interest on the Notes, for applicable interest periods, will be payable on the Interest Payment Date to which such PIK Election relates (x) with respect to Notes represented by one or more Global Notes registered in the name of, or held by, the Depositary or its nominee on the relevant record date, by increasing the principal amount of the outstanding Global Notes by an amount equal to the amount of PIK Interest for the applicable interest period (rounded up to the nearest whole Dollar) and (y) with respect to Notes represented by certificated notes, by issuing PIK Notes in certificated form in an aggregate principal amount equal to the amount of PIK Interest for the applicable period (rounded up to the nearest whole Dollar), and the Trustee will, at the request of the Issuer, authenticate and deliver such PIK Notes in certificated form for original issuance to the Holders on the relevant record date, as shown by the Note Register. Following a PIK Election, the Notes will bear interest at the rate set forth in Section 2.13(g)(i) above fr...