The Preferred Commitment and Payment Letter Sample Clauses
The Preferred Commitment and Payment Letter clause establishes the requirement for a formal written document that outlines the terms of commitment and payment between parties in a transaction. This letter typically details the amount to be committed, the schedule and method of payment, and any conditions precedent to the disbursement of funds. By clearly documenting these financial arrangements, the clause ensures both parties have a mutual understanding of their obligations, thereby reducing the risk of disputes and providing a clear reference point for enforcement.
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The Preferred Commitment and Payment Letter. 1. In connection with the Transaction and the consummation of the other transactions contemplated in the Commitment Letter and each of the exhibits thereto, dated January 23, 2020, from GSO Capital Partners LP, a Delaware limited partnership (“GSO”), addressed to the SPAC and the Company (the “Commitment Letter”), the Purchaser has committed to purchase from the Company, and the Company shall sell to the Purchaser, Series A Preferred Units of the Company (the “Units”) for an aggregate cash purchase price of $142,100,000 (the “Preferred Commitment”). Capitalized terms used but not defined herein shall have the meanings given such terms in the Commitment Letter.
2. The Company and GSO entered into a closing payment letter agreement, dated January 23, 2020 (as the same may be amended, the “Payment Letter”), providing for, among other things, the payment by the Company to GSO of certain fees in connection with the Preferred Commitment.