1st Lien Loan definition
Examples of 1st Lien Loan in a sentence
Treatment of Senior Secured Debt (other than Cross-over Senior Lenders) The Senior Secured Debt other than $25.0 million held by cross-over Senior Lenders will be satisfied with a package of cash paydown and new 1st Lien Loan (as described below).
Borrower to provide consolidated financial reporting on a quarterly basis and (for so long as the 1st Lien Loan leverage ratio is greater than 4.0x) on a monthly basis, in both cases including year-to-date reporting and a comparison to budget and to schedule a telephone conference with the 1st Lien Loan lenders quarterly.
Exercisable no more than three times in total (and no more than twice in any four consecutive quarters), limited to an aggregate maximum cap of $15 million (with a per cure limit of the amount necessary to cure the applicable default), and proceeds to be applied as a mandatory prepayment of 1st Lien Loan.
Mandatory prepayments required in circumstances substantially similar to the Credit Agreement (including full reinvestment rights with respect to Net Asset Sale Proceeds for Asset Sales within the $5M basket), in all cases to be applied to reduce, on a pro rata basis, the 1st Lien Loan.
Cash interest at 2.0% plus 10% PIK interest or, at the Company’s option, but only if at the time of payment the 1st Lien Loan leverage ratio is less than 4.0x and the Company’s liquidity (cash plus availability under the New Revolving Loan) is greater than $7.5 million (both leverage and minimum liquidity to be calculated after giving effect to the payment of 2nd Lien Note cash interest), cash interest at 10.0%.
The 2nd Lien Note will be secured by liens junior to the liens of the 1st Lien Loan lenders on all of the Collateral.