The Incremental Term Loans Clause Samples
The Incremental Term Loans clause allows a borrower to request additional term loans under an existing credit agreement, subject to certain conditions and lender consent. This mechanism typically outlines the process for increasing the total loan commitment, including limits on the amount, requirements for new lenders, and the terms that will apply to the incremental loans. Its core practical function is to provide the borrower with flexibility to access additional financing without renegotiating the entire agreement, thereby streamlining the process and addressing future funding needs efficiently.
The Incremental Term Loans. (A) shall be secured only by all or a portion of the Collateral securing the Secured Obligations (and shall not be secured on basis senior to the Liens securing the the Initial Term Loans) and shall only be guaranteed by the Loan Parties (and shall not rank prior in right of payment to the Initial Term Loans),
(B) shall not mature earlier than the Initial Term Maturity Date,
(C) shall not have a shorter Weighted Average Life to Maturity than the then remaining Weighted Average Life to Maturity of the Initial Term Loans,
(D) any Incremental Term Loans may participate on a pro rata basis or less than pro rata basis (but not, except in the case of any Refinancing of such Indebtedness, on a greater than a pro rata basis) in any mandatory prepayments of the Term Loans hereunder, as specified in the applicable Incremental Amendment,
(E) shall have a maturity date (subject to clause (B)), an amortization schedule (subject to clause (C)), and interest rates (including through fixed exchange rates or payment-in-kind interest), interest rate margins, AHYDO Catch-Up Payments, rate floors, fees, funding discounts, original issue discounts, closing payments, currency types and denominations, and redemption or prepayment terms (subject to clause (D)) and premiums for the Incremental Term Loans as determined by the Borrower and the lenders of the Incremental Term Loans; provided that, during the period commencing on the Effective Date and ending on the date that is twelve months after the Effective Date, in the event that the Effective Yield for any Incremental Term Loans (other than Incremental Term Loans (1) established pursuant to the proviso of Section 2.20(b), (2) having a final maturity date that is more than two years after the Initial Term Maturity Date, (3) Incurred in connection with an Acquisition, Investment or similar transaction, (4) denominated in a currency other than Dollars or (5) Incurred under the Incremental Base Amount (clauses (1) through (5), collectively, the “MFN Exceptions”)) is greater than the Effective Yield for the Initial Term Loans by more than 0.50%, then the Applicable Rates for the Initial Term Loans shall be increased to the extent necessary so that the Effective Yield for the Initial Term Loans are equal to the Effective Yield for the Incremental Term Loans minus 0.50% (this proviso, the “MFN Protection”),
(F) may otherwise have terms and conditions different from those of the Initial Term Loans; provided that (x) except with respect...
The Incremental Term Loans of the Credit Agreement provides that the Borrower, Holdings, each current Lender (for purposes of this definition, as defined in the Credit Agreement) and each Additional Lender (for purposes of this definition, as defined in the Credit Agreement) providing an Incremental Term Loan (for purposes of this definition, as defined in the Credit Agreement) (collectively, the “Incremental Term Lenders”), and the Administrative Agent may enter into an Incremental Agreement (for purposes of this definition, as defined in the Credit Agreement) to provide for the Tranche B Term Loans contemplated to be funded pursuant to this Agreement, the proceeds of which will be used (i) to refinance a portion of the Initial Term Loans (for purposes of this definition, as defined in the Credit Agreement) outstanding as of the date hereof and (ii) to pay fees, costs and expenses incurred by the Borrower in connection with the Second Amendment Transactions. The Borrower has requested that the Incremental Term Lenders collectively provide Tranche B Term Loan Commitments hereunder in an aggregate principal amount as set forth on Schedule 1.1(a) hereto (the “Tranche B Term Loan Commitment”) on the Second Amendment Effective Date, and each Incremental Term Lender is prepared to provide a portion of such Incremental Term Loan Commitment, and to provide a portion of the term loans (the “Tranche B Term Loans”) to be made pursuant thereto, in the respective amounts set forth opposite such Incremental Term Lender’s name on Schedule 1.1(a) hereto, in each case subject to the other terms and conditions set forth herein;
The Incremental Term Loans. (A) shall rank pari passu in right of payment and in respect of the Collateral with the Initial Term Loans; (B) shall not mature earlier than the Maturity Date of any Initial Term Loans outstanding at the time of incurrence of such Incremental Term Loans; (C) shall have a Weighted Average Life to Maturity no shorter than the remaining Weighted Average Life to Maturity of any Initial Term Loans outstanding at the time of incurrence of such Incremental Term Loans; (D) subject to Section 2.15(f) below, shall have an applicable rate and amortization determined by the Borrower and the applicable Incremental Lenders; and (E) may participate on a pro rata basis or less than pro rata basis (but not on a greater than pro rata basis) in any voluntary or mandatory prepayments of Initial Term Loans hereunder, as specified in the applicable Incremental Amendment; (ii) subject to the foregoing, the amortization schedule applicable to any Incremental Term Loans and the All-In Yield applicable to the Incremental
The Incremental Term Loans. (i) shall rank pari passu in right of payment and of security with the Term Loans; (ii) shall not mature earlier than the Term Loan Maturity Date; (iii) shall not have a shorter Weighted Average Life to Maturity than the Initial Term Loans; (iv) the amortization schedule and Applicable Margin for the Incremental Term Loans shall be determined by the Borrower and the Lenders of the Incremental Term Loans;