Examples of Debt Backstop Parties in a sentence
Such amount of total shares will be calculated shortly prior to the Effective Date and will depend on the extent, if any, to which Equity Backstop Parties and/or Debt Backstop Parties elect to receive payment of the Equity Backstop Premium or Debt Backstop Premium, as applicable, in shares of New Common Equity.
In addition, certain of the Debt Backstop Parties will share an additional premium equal to 1.5% of the New Debt (or $24,615,000), payable in cash (the “Additional Premium” and, together with the Debt Backstop Commitment Premium, the “Debt Commitment Premiums”).
The Debtors, recognizing this fact, obtained commitments from certain of the Consenting Noteholders to backstop the New Debt (in such capacity, the “ Debt Backstop Parties” and, together with the Equity Backstop Parties, the “Backstop Parties”) by locking in terms on which the Debt Backstop Parties will fund the New Debt, as set forth in the Debt Backstop Agreement.
The Debtors and the Debt Backstop Parties negotiated the Debt Backstop Agreement in good faith and at arm’s-length.
In addition to the Debt Commitment Premiums, the Debtors agreed to pay all reasonable and documented fees and expenses of the advisors to the Debt Backstop Parties (including advisors’ fees) under the Debt Backstop Agreement, including if the Debt Backstop Agreement is terminated (the “Debt Expense Reimbursement” and, together with the Equity Expense Reimbursement, the “Expense Reimbursements”).
These amounts represent compensation for the capital commitments that the Equity Backstop Parties and Debt Backstop Parties are providing under the applicable Backstop Agreements, are reflective of the certainty and other benefits that those commitments provide to the Debtors and their estates, and were necessary inducements for the applicable Backstop Parties to enter into the Backstop Agreements.
Pursuant to the Debt Backstop Agreement, the Debtors will indemnify and hold harmless the Debt Backstop Parties from claims by a third party arising out of or in connection with the Debt Backstop Agreement (the “ Debt Backstop Indemnity Obligations”).
Plans, coordinates, and activates, when required, C4 systems facilities to provide rapid and reliable communications in support of the JFLCC.
With respect to any Debt Backstop Party, such Debt Backstop Party’s percentage of the Debt Backstop Obligations as set forth opposite such Debt Backstop Party’s name under the column titled “Debt Backstop Percentage” on the Debt Backstop Allocation Schedule; provided, that nothing herein shall prohibit the consensual reallocation of such obligations among the Debt Backstop Parties.
Pursuant to that agreement, the Debt Backstop Parties agree to backstop the New Long-Term Debt on a several, and not joint and several, basis, on the terms set forth therein, and in exchange for certain consideration including the Debt Backstop Premium and the Additional Debt Backstop Premium.