Examples of New Term Loan B Facility in a sentence
The New Term Loan B Facility shall be a $75 million secured term loan facility.
The terms of the New Term Loan B Facility shall be in accordance with the RSA and the documentation for the New Term Loan B Facility shall be included in the Plan Supplement and otherwise acceptable to the Debtors and the Required Consenting Term Lenders and reasonably acceptable to the Required Consenting Revolving Lenders and the Supporting Common Interest Holders.
The Reorganized Debtors shall enter into the New Term Loan B Facility on the Effective Date, on terms set forth in the New Term Loan Agreement Documents.
The New Term Loan B Facility requires scheduled quarterly payments commencing on the first full fiscal quarter ended after the Closing Date, each equal to 0.25% of the original principal amount of the loans under the New Term Loan B Facility, with the balance due and payable on the seventh anniversary of the Closing Date.
Pursuant to the Plan, each U.S. Holder of a Term Loan Facility Claim will receive its Pro Rata share of the loans arising under the New Term Loan B Facility and equity interests in Reorganized Holdco.
Under the “market discount” provisions of sections 1276 through 1278 of the Tax Code, some or all of the gain realized by a U.S. Holder of a Claim who exchanges the Claim for Cash, debt under the New Term Loan A Facility, or debt under the New Term Loan B Facility on the Effective Date may be treated as ordinary income (instead of capital gain), to the extent of the amount of “accrued market discount” on the Claim.
If the New Term Loan B Facility is not traded on an established market and the Term Loan Facility Claims are traded on an established market at the time of the exchange, the issue price of the New Term Loan B Facility will be determined by applying the “investment unit” rules and treating the New Term Loan B Facility as part of an investment unit (including the equity interests in Reorganized Holdco) issued in exchange for the Term Loan Facility Claims.
Because the New Term Loan B Facility will have a stated principal amount of only $75 million, the New Term Loan B Facility should not be viewed as traded on an established market.
If neither the New Term Loan B Facility nor the Term Loan Facility Claims are traded on an established market at the time of the exchange, the issue price of the New Term Loan B Facility will generally equal its stated principal amount.
These rules are complex and U.S. Holders are urged to consult with their tax advisors regarding the determination of the issue price of the New Term Loan B Facility.