Acquisition Term Loan Clause Samples
An Acquisition Term Loan clause defines the terms under which a borrower receives a loan specifically to finance the purchase of another company or significant assets. This clause typically outlines the loan amount, repayment schedule, interest rate, and any conditions precedent to funding, such as completion of the acquisition or delivery of certain documents. Its core function is to provide structured financing for acquisitions, ensuring both parties understand the obligations and timing related to the loan, and to allocate risk associated with the transaction.
Acquisition Term Loan. (i) Subject to and upon the terms and conditions of this Agreement, Bank agrees to make a single cash advance (the “Acquisition Term Loan”) to Parent in an original principal amount of up to Six Million Dollars ($6,000,000) and no less than Three Million Dollars ($3,000,000). The proceeds of the Acquisition Term Loan shall be used to finance the acquisition of Target.
(ii) Interest shall accrue from the date the Acquisition Term Loan is made to Parent (the “Funding Date”) at the rate specified in Section 2.3. Payments of interest only shall be made monthly in arrears on the tenth day of each month for the first six months following the Funding Date. Thereafter, the Acquisition Term Loan shall be payable in fifty-four (54) monthly installments of principal (each, a “Scheduled Payment”), plus all accrued interest, beginning on the tenth day of the seventh month following the Funding Date in accordance with the payment schedule set forth below, and continuing on the same day of each month thereafter through the fifth anniversary of the Funding Date (the “Acquisition Term Loan Maturity Date”), at which time all amounts owing under this Section 2.1(b) and any other amounts related thereto shall be immediately due and payable. Scheduled Payments 1 – 12: [11.12% of the Acquisition Term Loan divided by 6] Scheduled Payments 13 – 54: [22.22% of the Acquisition Term Loan divided by 12]
(iii) Borrowers shall have the option to prepay all but not less than all of the Acquisition Term Loan provided that Borrowers provide written notice to Bank of its election to prepay the Acquisition Term Loan at least ten (10) days prior to such prepayment, and pays, on the date of such prepayment, (1) the outstanding principal amount of the Acquisition Term Loan being repaid, plus (2) all accrued interest thereon, plus (3) all other sums, if any, that shall have become due and payable under the Loan Documents and relate to such Acquisition Term Loan, plus (4) the Prepayment Fee. The Acquisition Term Loan once repaid, may not be reborrowed.
(iv) Bank’s obligation to make the Acquisition Term Loan to Parent is conditioned upon Bank’s receipt of the following, each in form and substance satisfactory to Bank: (1) the executed asset purchase agreement, together with all material schedules, exhibits and ancillary documents entered into in connection therewith; (2) subordination agreement duly executed by the shareholders of Target; and (3) an Acquisition Term Loan Request Form in the form...
Acquisition Term Loan. Beginning on December 31, 2014, and continuing on the last Business Day of each March, June, September, and December thereafter, the Borrower shall make principal payments to the Acquisition Term Lenders each in the amount of $1,750,000.00 (which amounts shall be reduced as a result of the application of prepayments in accordance with the order of priority set forth in Section 2.05), unless accelerated sooner pursuant to Section 8.02; provided, however, that (i) the final principal repayment installment of the Acquisition Term Loans shall be repaid on the Maturity Date for the Acquisition Term Facility and in any event shall be in an amount equal to the aggregate principal amount of all Acquisition Term Loans outstanding on such date and (ii) (A) if any principal repayment installment to be made by the Borrower (other than principal repayment installments on Eurodollar Rate Loans) shall come due on a day other than a Business Day, such principal repayment installment shall be due on the next succeeding Business Day, and such extension of time shall be reflected in computing interest or fees, as the case may be and (B) if any principal repayment installment to be made by the Borrower on a Eurodollar Rate Loan shall come due on a day other than a Business Day, such principal repayment installment shall be extended to the next succeeding Business Day unless the result of such extension would be to extend such principal repayment installment into another calendar month, in which event such principal repayment installment shall be due on the immediately preceding Business Day.
Acquisition Term Loan. Subject to the terms and conditions of this Agreement, the Bank shall amend and restate that certain term loan (the “Acquisition Term Loan”) to the Borrower in a principal amount equal to One Million and Seventy-Five Thousand and 00/100 Dollars ($1,075,000), the proceeds of which was used to fund the acquisition of the Purchased Stock.
Acquisition Term Loan. Subject to the terms and conditions of this Agreement and in reliance upon the representations and warranties of Holdings and Borrower contained herein, each Acquisition Term Lender, severally and not jointly, shall make a term loan to Borrower in one draw on the Restatement Date in an amount equal to its Pro Rata Share of $230,000,000 (the “Acquisition Term Loan”). Borrower shall repay the Acquisition Term Loan through periodic payments on the dates and in the amounts indicated below (“Acquisition Term Loan Scheduled Installments”). June 30, 2009 $ 4,312,500 September 30, 2009 $ 4,312,500 December 31, 2009 $ 4,312,500 March 31, 2010 $ 4,312,500 June 30, 2010 $ 5,750,000 September 30, 2010 $ 5,750,000 December 31, 2010 $ 5,750,000 March 31, 2011 $ 5,750,000 June 30, 2011 $ 5,750,000 September 30, 2011 $ 5,750,000 December 31, 2011 $ 5,750,000 March 31, 2012 $ 5,750,000 June 30, 2012 $ 7,187,500 September 30, 2012 $ 7,187,500 December 31, 2012 $ 7,187,500 March 31, 2013 $ 7,187,500 June 30, 2013 $ 7,187,500 September 30, 2013 $ 7,187,500 December 31, 2013 $ 7,187,500 March 28, 2014 $ 116,437,500 The final installment shall in all events equal the entire remaining principal balance of the Acquisition Term Loan. Notwithstanding the foregoing, the outstanding principal balance of the Acquisition Term Loan shall be due and payable in full on the Term Loan Maturity Date. Amounts borrowed under this Section 1.1(a)(ii) and repaid may not be reborrowed. The Acquisition Term Loan shall be evidenced by promissory notes substantially in the form of Exhibit 1.1(a)(ii) (as amended, modified, extended, substituted or replaced from time to time, each a “Acquisition Term Note” and, collectively, the “Acquisition Term Notes”), and, except as provided in Section 1.7, Borrower shall execute and deliver each Acquisition Term Note to the applicable Acquisition Term Lender. Each Acquisition Term Note shall represent the obligation of Borrower to pay the amount of the applicable Acquisition Term Lender’s Acquisition Term Loan Commitment, together with interest thereon.
Acquisition Term Loan. 2 1.3 Borrowing Procedure Under the Credit Facility . . . . . . . . . . . . . . . . . . . . . . . 2 1.4
Acquisition Term Loan. Subject to Section 2.3(b), the principal amount outstanding with respect to the Acquisition Term Loan shall accrue interest at a fixed per annum rate equal to seven and one half percent (7.50%), which interest shall be payable monthly in accordance with Section 2.3(f) below.
Acquisition Term Loan. Subject to the terms of this Agreement including satisfaction of each of the preconditions set forth in Section 2.3(c), Lenders agree to make available to Borrowers, a term loan, the proceeds of which shall be used to pay a portion of the purchase price in connection with CAII's acquisition of Connecting Point in accordance with the terms of the Acquisition Agreement ("Acquisition Term Loan"). The Acquisition Term Loan shall be in an initial principal amount not to exceed $1,200,000 which shall be repaid in successive quarterly installments in accordance with the Acquisition Term Loan Note. The quarterly payments under the Acquisition Term
Acquisition Term Loan. See Section 2.1(e).
Acquisition Term Loan. The principal balance of the Acquisition Term --------------------- Loan shall be repaid in 24 consecutive monthly installments due and payable on the first day of each calendar month commencing with the first such day following the Revolving Termination Date. The first 23 such installments shall each be in an amount equal to 1/36th of the initial principal balance of the Acquisition Term Loan and the final installment shall be equal to the remaining principal balance of the Acquisition Term Loan. Notwithstanding the foregoing, on the Termination Date, the principal amount of the Acquisition Term Loan then outstanding shall be due and payable in full. The Company may request the Lender to extend the initial maturity date of the Acquisition Term Loan for an additional twelve-month period by delivering to the Lender at least 120 days but no more than 150 days prior to the Termination Date, a written request for such extension. The Company acknowledges that the Lender has not promised (either expressly or impliedly), nor does the Lender have any obligation or commitment whatsoever, to extend the maturity date of the Acquisition Term Loan. If the Lender, in its sole and absolute discretion, consents to such an extension, the Lender shall evidence such consent and the extension of the maturity date of the Acquisition Term Loan by delivering to the Company, no later than the date 60 days prior to the Termination Date, a letter evidencing such extension. If the Lender does not deliver such written direction in accordance with the preceding sentence, such failure shall be deemed a denial of the Company's request for such extension.
Acquisition Term Loan. Subject to the terms and conditions set forth in this Agreement, each Lender, severally and not jointly, will make Acquisition Term Loans to Borrower, from time to time during the period commencing on the Closing Date and ending on August 20, 2000, in aggregate principal amounts outstanding at any time equal to such Lender's Commitment Percentage of up to $25,000,000.