Eligible First Lien Loan definition
Eligible First Lien Loan means a Loan that (i) is not (and by its terms is not permitted to become) subordinate in right of payment to any other debt for borrowed money incurred by the obligor of such Loan (other than with respect to a Senior Working Capital Facility, if any, provided that the outstanding principal balance and unfunded commitments of such Senior Working Capital Facility does not exceed 30% of the sum of (a) the outstanding principal balance and unfunded commitments of such Senior Working Capital Facility, plus (b) the outstanding principal balance of the Loan, plus (c) the outstanding principal balance of any other debt for borrowed money incurred by such obligor that is pari passu with such Loan), (ii) is secured by a valid first priority perfected security interest or lien on specified collateral securing the obligor’s obligations under the Loan, (iii) the value of the collateral securing the Loan together with other attributes of the obligor (including, the obligors general financial condition and its ability to generate cash flow available for debt service and other demand for that cash flow) is adequate (in the commercially reasonable judgment of the Borrower or the Collateral Manager) to repay the Loan and all other senior or pari-passu indebtedness, and (iv) is not secured solely or primarily by common stock or other equity interests.
Eligible First Lien Loan means any loan, security or participation under which the Issuer and any other lenders are granted a valid, perfected first priority security interest in designated collateral (whether or not the Issuer and any other lenders are also granted a security interest of lower priority in additional collateral).
Examples of Eligible First Lien Loan in a sentence
Individual Obligor Concentration Limits1 Largest and 2nd Largest Eligible First Lien Loan Obligors 7.5% Remaining Eligible First Lien Loan Obligors 5.0% If there are multiple Loans to a single obligor, aggregate Adjusted Principal Amount will be subject to both the loan type Individual Concentration Limits and an aggregate applicable Obligor limit of 7.5% if one of the Loans is an Eligible First Lien Loan or 5%.