Uncommitted Incremental Facility Clause Samples
An Uncommitted Incremental Facility clause allows a borrower to request additional loan commitments from existing or new lenders under a credit agreement, but without any obligation on the lenders to provide such commitments. In practice, this means the borrower can seek to increase the total available credit up to a specified cap, subject to lender consent and satisfaction of certain conditions, but lenders are not required to participate. This clause provides flexibility for the borrower to access extra funding if needed, while protecting lenders from being compelled to lend more than originally agreed.
Uncommitted Incremental Facility. (a) Subject to the terms and conditions hereof, the Lenders agree that the Borrower may, on any Business Day from time to time until June 30, 2024, deliver a written notice to the Administrative Agent requesting to add additional term loans or increase the principal amount of existing Term Loan (such additional term loan or increase, the "Incremental Term Loans"; and the credit facility for making any Incremental Term Loans is hereinafter referred to as the "Incremental Term Facility") in minimum principal amounts of $5,000,000; provided that (i) the Administrative Agent shall have received a written request for such Incremental Term Loan not later than 12:00 noon (New York City time) on the date which is 10 Business Days prior to the date of the proposed Incremental Term Loan, (ii) all conditions set forth in Section 5.02 shall have been satisfied and the Borrower shall have delivered to the Collateral Agent a certificate from an Authorized Officer certifying as to matters set forth in Section 5.02(a), (iii) the LTV Ratio shall not exceed 65% on a pro forma basis, and the Borrower shall have delivered a certificate of the chief financial officer of the Borrower certifying as to such matters, (iv) the Borrower shall have delivered or cause to be delivered any legal opinions, resolutions and other customary closing documents and certificates reasonably requested by any Agent in connection with such transaction and (v) any closing fee or other amounts payable to the Agents and the Lenders pursuant to the applicable Incremental Facility Amendment shall have been paid.
(b) The aggregate principal amount of all Incremental Term Loans shall not exceed $15,000,000 (or such greater amount as the Collateral Agent and the Required Lenders may approve from time to time).
(c) Any existing Lender may, but shall not be obligated to, participate in any Incremental Term Facility on a pro rata basis. If the existing Lenders do not agree to make the amount of the Incremental Term Loan requested by the Borrower, the Borrower may, with the consent of the Collateral Agent and the Required Lenders, which consent may not be unreasonably withheld, seek one or more Persons reasonably acceptable to the Collateral Agent to be added as Lenders for purposes of participating in such remaining portion.
Uncommitted Incremental Facility. At any time and from time to time, Borrower may request that Bank provide Borrower with an additional credit facility pursuant to which Borrower will obtain up to Twenty-Five Million Dollars ($25,000,000) of additional borrowing availability (the “Incremental Facility”). Bank may, in its sole and absolute discretion, grant or deny any such request or requests for an Incremental Facility, and furthermore, any approval of any such request for an Incremental Facility shall be on terms and conditions, and subject to execution of an amendment to this Agreement, acceptable to Bank in its sole and absolute discretion.
Uncommitted Incremental Facility