Step-Up Loan definition
Step-Up Loan means an obligation or security which by the terms of the applicable Related Contracts provides for an increase in the per annum interest rate on such obligation or security, or in the spread over the applicable index or benchmark rate, solely as a function of the passage of time; provided that an obligation or security providing for payment of a constant rate of interest or in the spread over the applicable index or benchmark rate at all times after the date of acquisition by the Borrower shall not constitute a Step-Up Loan.
Step-Up Loan. A loan which by the terms of the related Underlying Instruments provides for an increase in the per annum interest rate on such loan, or in the spread over the applicable index or benchmark rate, solely as a function of the passage of time (and for the avoidance of doubt, not based upon a change in any leverage or financial performance measurement); provided that, a loan providing for payment of a constant rate of interest or a constant spread over the applicable index or benchmark rate on at least a quarterly basis at a rate of not less than 4.00% per annum in excess of the applicable index or benchmark rate (or, in the case of a fixed rate loan, not less than 5.00% per annum) at all times after the date of acquisition by the Borrower shall not constitute a Step-Up Loan.
Step-Up Loan. Any Loan which by the terms of its underlying instruments provides for an increase in its per annum interest rate (other than by reason of a change in the applicable index or benchmark rate) or in the spread over its applicable index or benchmark rate solely due to the passage of time; provided that a Loan that must pay a constant rate of interest at all times after the date of its acquisition by the Borrower is not a Step Up Loan.
More Definitions of Step-Up Loan
Step-Up Loan. ” means an obligation or security which by the terms of the applicable Related Contracts provides for an increase in the per annum interest rate on such obligation or security, or in the spread over the applicable index or benchmark rate, solely as a function of the passage of time; provided that an obligation or security providing for payment of a constant rate of interest or in the spread over the applicable index or benchmark rate at all times after the date of acquisition by the Borrower shall not constitute a Step-Up Loan.
Step-Up Loan means an obligation the Related Contracts of which contractually mandate an increase in coupon payments or spread solely as a function of the passage of time; provided that, an obligation providing for payment of a constant rate of interest or in the spread over the applicable index or benchmark rate at all times after the date of acquisition by the applicable Loan Party shall not constitute a Step-Up Loan. For the avoidance of doubt, increases that are based upon a deterioration in the creditworthiness of the Obligor or changes in a pricing grid or based on deterioration in financial ratios or other similar coupon or spread-reset features shall not be considered in determining whether an obligation is a Step-Up Loan.