Variable Margin Sample Clauses
The Variable Margin clause establishes the requirement for parties to adjust the amount of collateral, or margin, posted in response to changes in the value of their outstanding obligations. In practice, this means that as the market value of positions fluctuates, the parties must recalculate and transfer additional collateral or return excess amounts to maintain adequate risk coverage. This mechanism ensures that both parties are protected against credit risk arising from market movements, thereby reducing the likelihood of losses due to counterparty default.
Variable Margin. (A) During each Margin Re-Calculation Period the Facility Agent shall review the Guarantor’s ratio of Net Funded Debt (as at the relevant Quarterly Financial Statements Preparation Date) to EBITDA (prevailing during the four (4) financial quarters ending on the relevant Quarterly Financial Statements Preparation Date which immediately preceded the relevant Margin Re-Calculation Period) (for the purpose of this clause 6.2 the “Prevailing Ratio”) based on the calculations contained in the relevant Certificate of Compliance accompanying the Quarterly Financial Statements.
(B) The Facility Agent shall notify the Borrower and the Lenders in writing before the expiry of the Margin Re-Calculation Period of the Prevailing Ratio and whether or not the Prevailing Ratio would result in a change of the Applicable Margin.
(C) Any adjustment in the Applicable Margin as a result of clauses 6.2(A) and 6.2(B) shall take effect on and with effect from the relevant Margin Adjustment Date and apply to all of the Outstanding Indebtedness as at such date until further adjusted under the provisions of this clause 6.2 and the Facility Agent’s notice referred to in clause 6.2(B) shall include a statement setting out the re-calculated interest due with respect to the Outstanding Indebtedness.
Variable Margin. (a) During each Margin Re-Calculation Period the Facility Agent shall review the Guarantor's Leverage Ratio (as at the relevant Quarterly Financial Statements Preparation Date) (for the purpose of this clause 5.8 the "Prevailing Ratio") based on the calculations contained in the relevant Certificate of Compliance accompanying the Quarterly Financial Statements. If, after reviewing the calculations contained in any Certificate of Compliance, the Facility Agent is of the opinion that the Certificate of Compliance does not accurately determine the Prevailing Ratio, the Facility Agent shall notify the Borrowers in writing and the parties shall in good faith endeavour to resolve the error in calculation or difference of opinion (as the case may be) prior to the expiry of the Margin Re-Calculation Period. If the Facility Agent and the Borrowers fail to reach agreement as aforesaid the Facility Agent shall in good faith determine the Prevailing Ratio.
(b) The Facility Agent shall notify each Borrower and the Lenders in writing before the expiry of the Margin Re-Calculation Period of the Prevailing Ratio and whether or not the Prevailing Ratio would result in a change of the Margin in accordance with the table set out in the definition of such Margin in clause 1.2.
(c) Any adjustment in the Margin as a result of clauses 5.8(a) and (b) shall take effect on and with effect from the relevant Margin Adjustment Date and apply to all of the Advances as at such date until further adjusted under the provisions of this clause 5.8 and the Facility Agent's notice referred to in clause 5.8(b) shall include a statement setting out the re-calculated interest due with respect to each such Advance.
Variable Margin. 17 6 Repayment, prepayment and cancellation......................................... 17 6.1 Repayment...................................................................... 17 6.2 Rollover of Advances........................................................... 17 6.3