Minimum Cash Spread definition
Minimum Cash Spread means, with respect to any PIK Loan Asset (i) which is a floating rate Loan Asset, the minimum contractual required per annum applicable margin (excluding the related benchmark or index rate) at which it must pay interest in cash as set forth in the related Underlying Instruments and (ii) which is a fixed rate Loan Asset, the minimum contractual required per annum rate at which it must pay interest in cash as set forth in the related Underlying Instruments minus the current Benchmark as of any date of determination in the Eligible Currency of such fixed rate Loan Asset. By way of illustration, if a floating rate Loan Asset bears interest at Term SOFR plus an applicable margin of 6.00% per annum, and the related Obligor has the right to elect to defer or capitalize interest under the Underlying Instrument up to 2.50% of the applicable margin component of such interest for any interest period (plus any required step-up to such applicable margin), then the Minimum Cash Spread with respect to such Loan Asset shall be 3.50% per annum. By way of further illustration, if a fixed rate Loan Asset that is a PIK Loan Asset bears interest at an applicable fixed rate of 9.00% per annum, the applicable current Benchmark is 3.00% per annum, and the related Obligor has the right to elect to defer or capitalize interest up to 2.50% of such interest for any interest period, then the Minimum Cash Spread with respect to such Loan Asset shall be 3.50% per annum.
Minimum Cash Spread means, with respect to any PIK Loan Asset (i) which is a floating rate Asset, the minimum contractual required per annum applicable margin (excluding the benchmark or index rate applicable to such floating rate Asset) at which it must pay interest in cash as set forth in the related Underlying Instruments, and (ii) which is a fixed rate Asset, the minimum contractual required per annum rate at which it must pay interest in cash as set forth in the related Underlying Instruments minus the applicable current Benchmark. By way of illustration, if a floating rate Asset bears interest at Term SOFR plus an applicable margin of 6.00% per annum, and the related Obligor has the right to elect to defer or capitalize interest under the Underlying Instrument up to 2.50% of the applicable margin component of such interest for any interest period (plus any required step-up to such applicable margin), then the Minimum Cash Spread with respect to such Asset shall be 3.50% per annum. By way of further illustration, if a fixed rate Asset that is a PIK Loan Asset bears interest at an applicable fixed rate of 9.00% per annum, the applicable current Benchmark is 3.00% per annum, and the related Obligor has the right to elect to defer or capitalize interest under the Underlying Instrument up to 2.50% of such interest for any interest period, then the Minimum Cash Spread with respect to such Asset shall be 3.50% per annum.
Minimum Cash Spread means, with respect to any PIK Loan Asset (i) which is a floating rate Loan Asset, the minimum contractual required per annum applicable margin (excluding the related benchmark or index rate) at which it must pay interest in cash as set forth in the related Underlying Instruments and (ii) which is a fixed rate Loan Asset, the minimum contractual required per annum rate at which it must pay interest in cash as set forth in the related Underlying Instruments minus the current Benchmark as of any date of determination in the Eligible Currency of such fixed rate Loan Asset. By way of illustration, if a floating rate Loan Asset bears interest at Term SOFR plus an applicable margin of 6.00% per annum, and the related Obligor has the right to elect to defer or capitalize interest under the Underlying Instrument up to 2.50% of the applicable margin component of such interest for any interest period (plus any required step-up to such applicable margin), then the Minimum Cash Spread with respect to such Collateral Loan shall be 3.50% per annum. By way of further illustration, if a fixed rate Loan Asset that is a PIK Loan bears interest at an applicable fixed rate of 9.00%per annum, the applicable current Benchmark is 3.00% per annum, and the related Obligor has the right to elect to defer or capitalize interest up to 2.50% of such interest for any interest period, then the Minimum Cash Spread with respect to such Loan Asset shall be 3.50% per annum.
More Definitions of Minimum Cash Spread
Minimum Cash Spread means, with respect to any PIK Loan (i) which is a floating rate Loan, the minimum contractual required per annum applicable margin (excluding the benchmark or index rate applicable to such floating-rate Loan) at which it must pay interest in cash as set forth in the related Underlying Instruments, and (ii) which is a fixed rate Loan, the minimum contractual required per annum rate at which it must pay interest in cash as set forth in the related Underlying Instruments minus the applicable current Benchmark. By way of illustration, if a floating rate Loan bears interest at Term SOFR plus an applicable margin of 6.00% per annum, and the related Obligor has the right to elect to defer or capitalize interest under the Underlying Instrument up to 2.50% of the applicable margin component of such interest for any interest period (plus any required step-up to such applicable margin), then the Minimum Cash Spread with respect to such Loan shall be 3.50% per annum. By way of further illustration, if a fixed rate Loan that is a PIK Loan bears interest at an applicable fixed rate of 9.00% per annum, the applicable current Benchmark is 3.00% per annum, and the related Obligor has the right to elect to defer or capitalize interest under the Underlying Instrument up to