PIK Margin definition
Examples of PIK Margin in a sentence
Without prejudice to Article 9 (Events of Default), if the Borrower fails to pay any amount payable by it under the Contract on its due date, interest shall accrue on any such overdue amount from the due date to the date of actual payment at an annual rate equal to the higher of: (a) the applicable PIK Margin plus 2% (200 basis points); or (b) EURIBOR plus 2% (200 basis points), and shall be payable in accordance with the demand of the Bank.
Notwithstanding the foregoing, the Borrower may elect to pay all or a portion of the amount equal to interest accrued at the New Money Term Loan PIK Margin to be paid “in kind” on any New Money Term Loan Interest Payment Date in cash by delivering a written notice to the Administrative Agent in substantially the form of Exhibit E hereto (a “Cash Pay Notice”), no later than five (5) Business Days prior to such New Money Term Loan Interest Payment Date.
If the Agreement is terminated, it is intended that the termination of the Agreement be contemporaneous with final acceptance of all services by CITY.
Any interest accruing in respect of the PIK Margin shall be compounded with the Loan on the last day of each Interest Period (and, if the Interest Period is longer than six Months, on the dates falling at six monthly intervals after the first day of the Interest Period).
In the event that if, as of Borrower’s fiscal year ended M▇▇▇▇ ▇▇, ▇▇▇▇, ▇▇▇▇▇▇ for the immediately preceding 12-month period equals or exceeds $14,700,000, and any reduction in the PIK Margin or the Term Loan C Margin is made, any such reduction shall be effective as of April 1, 2006 and any necessary adjustments to the accrued or paid interest will be made upon receipt of the Borrower’s audited financial statements for its fiscal year ended March 31, 2006.