Applicable Margin Definition Clause Samples
The Applicable Margin Definition clause establishes the specific interest rate margin that will be added to a base rate to determine the total interest rate on a loan or credit facility. This clause typically outlines how the margin is set, which may depend on factors such as the borrower's credit rating, financial ratios, or other performance metrics, and may include schedules or tables for reference. Its core practical function is to provide a clear and objective method for calculating interest costs, ensuring transparency and predictability for both lenders and borrowers.
Applicable Margin Definition. Subsection (a), (b) and (c) of the definition of Applicable Margin are deleted in their entirety and replaced with the following:
(a) For any RC Loans or Tranche A Term Loans, the Applicable Margin shall be the percentage amount set forth below under the caption "Applicable Margin for RC Loans and Tranche A Term Loans" opposite the relevant Adjusted Total Debt/Cash Flow Ratio: Adjusted Total Applicable Margin for RC Loans Debt/Cash Flow Ratio and Tranche A Term Loans -------------------- --------------------------------- Prime Rate Loans LIBO Rate Loans ---------------- --------------- below 3.0 0 1.00% > 3.0 < 3.5 0 1.25% - > 3.5 < 4.0 0 1.50% - > 4.0 < 4.5 0 1.75% - > 4.5 < 5.0 0 2.00% - > 5.0 < 5.5 .25% 2.25% - > 5.5 < 6.0 .50% 2.50% - > 6.0 < 6.5 .75% 2.75% - > 6.5 < 7.0 .75% 3.00% - > 7.0 < 7.5 .75% 3.25% - > 7.5 < 8.0 1.75% 3.50% - > 8.0 2.00% 3.75% -
(b) For any Tranche B Term Loan, the Applicable Margin at all times after the Amendment No. 4 Effective Date for LIBO Rate Loans shall be 4.00%, provided, however, that any time that the Adjusted Total Debt/Cash Flow Ratio is less than 4.5 to 1.0, the Applicable Margin for Tranche B Term Loans shall be 3.25%. For any Tranche B Term Loan, the Applicable Margin at all times after the Amendment No. 4 Effective Date for Prime Rate Loans shall be 2.25% provided, however, that at any time that the Adjusted Total Debt/Cash Flow Ratio is less than 4.5 to 1.0, the Applicable Margin for Tranche B Loans which are Prime Rate Loans shall be 1.50%.
(c) For any Tranche C Term Loan, the Applicable Margin at all times after the Amendment No. 4 Effective Date for LIBO Rate Loans shall be 4.25%, provided, however, that any time that the Adjusted Total Debt/Cash Flow Ratio is less than 4.5 to 1.0, the Applicable Margin for Tranche C Term Loans shall be 3.50%. For any Tranche C Term Loan, the Applicable Margin at all times after the Amendment No. 4 Effective Date for Prime Rate Loans shall be 2.50% provided, however, that at any time that the Adjusted Total Debt/Cash Flow Ratio is less than 4.5 to 1.0, the Applicable Margin for Tranche C Loans which are Prime Rate Loans shall be 1.75%.
Applicable Margin Definition. In order to increase the Applicable Margin on LIBO Rate Loans and add two additional pricing tiers, the definition of Applicable Margin is amended in its entirety to read as follows:
Applicable Margin Definition. The definition of Applicable Margin in Section 1.1 is deleted in its entirety, and replaced with the following:
Applicable Margin Definition. (i) The definition of "Applicable Margin" in Section 1.01 of the Credit Agreement is amended by restating the introductory clause therein as follows:
Applicable Margin Definition. The definition of "Applicable Margin" contained in the each of the Notes is amended and restated in its entirey as follows:
Applicable Margin Definition. The definition of "Applicable Margin" in Schedule I to the Receivables Sale Agreement is hereby amended and restated to read as follows:
Applicable Margin Definition. The next-to-last sentence of the definition of "Applicable Margin" shall be amended in its entirety to read as follows: The Applicable Margin shall be adjusted five Business Days after receipt of the annual or quarterly Officer's Compliance Certificate delivered pursuant to Section 6.1 and shall be based on the Adjusted Total Debt to Cash Flow Ratio set forth therein.