Adjustments for Syndication Clause Samples
The "Adjustments for Syndication" clause outlines how the terms of a contract may be modified to facilitate the participation of additional lenders or investors in a syndicated financing arrangement. In practice, this clause allows the lead lender or agent to make certain changes—such as amending payment mechanics, information sharing, or administrative procedures—so that the agreement can accommodate multiple parties without renegotiating the entire contract. Its core function is to provide flexibility and ensure the smooth integration of new syndicate members, thereby streamlining the syndication process and reducing administrative hurdles.
Adjustments for Syndication. If the Administrative Agent reasonably determines in connection with any request made by Borrower under Section 2.16(B)(i) that (a) bring down legal opinions, closing certificates or other due diligence is necessary in order to complete same and/or (b) increases in the Usage Fees or Unused Line Fees, upfront fees/commitments fees, reductions in the Advance Rate or Borrowing Base, or other changes in the pricing, amount, terms, allocation or structure of the transactions contemplated in this Agreement are necessary in order to secure the requested increase in Aggregate Commitments by such Additional Lender, ▇▇▇▇▇▇▇▇ agrees to negotiate in good faith regarding such changes or deliverables but shall not be required to accept any such changes or provide such deliverables.
Adjustments for Syndication. If the Administrative Agent reasonably determines in connection with any request made by the Borrower under Section 2.18(B)(i) that (a) bring-down legal opinions, closing certificates or other documents or due diligence is necessary in order to complete same and/or (b)(1) increases in the Class A Usage Fee Margin, the Class B Usage Fee Margin or the Unused Line Fee Percentage, (2) increases to, or additional, upfront fees, commitment fees or structuring fees, (3) reductions in the Borrowing Base, the Class A Borrowing Base or the Class B Borrowing Base, or any changes to the components of such definitions, or (4) any other changes in the pricing, amount, terms, allocation or structure of the transactions contemplated in this Agreement or any other Transaction Document, are necessary in order to secure the requested increase in Aggregate Commitment by such Additional Lender, the Borrower agrees to negotiate in good faith regarding such changes or deliverables but shall not be required to accept any such changes or provide such deliverables. Nothing in this clause (ii) shall limit the application of Section 10.2.