Margin Increase definition
Examples of Margin Increase in a sentence
If, on any such testing date: (x) DSCR is less than 0.8x; or (y) Net Leverage is greater than the level set at the same implied headroom as DSCR of 0.8x, (the events described in either (x) or (y) (or both occurring on the same test date) being a “Margin Increase Trigger”), the “Applicable Margin” under each Secured Facility Agreement shall be increased by 25 basis points with effect from the testing date of such quarter in which a Margin Increase Trigger occurred.
In circumstances where the Margin Increase Trigger has occurred the senior banks will have consultation rights with Seadrill Limited, IHCo and RigCo (to be agreed).
If the Margin Increase Trigger is ‘cured’ as a result of the contribution to RigCo the margin increase described above shall not apply.
For the avoidance of doubt, if sufficient cash to cure the Margin Increase Trigger is not contributed to RigCo then, unless IHCo had sufficient cash to cure the Margin Increase Trigger, the only consequence shall be the imposition of the additional margin described above.
For the avoidance of doubt, the occurrence of a Margin Increase Trigger during these first four testing periods will not be a default or an event of default.
The resulting increase In the V2 Product Prices shall be added into Cumulative VMR Share of Intrepid Net Margin Increase from List Price Increases (line (e)(2) of Appendix A).
For the avoidance of doubt, (A) the Applicable Margin shall increase by an additional 2% per annum upon each occurrence of a Credit Event and (B) immediately upon the waiver or cure of such Event of Default, the Credit Event Step-Up shall apply and the Applicable Margin shall be increased by the Credit Event Margin Increase commencing on, and including, the date of such cure or waiver.