Application of Designated Prepayments. Each mandatory prepayment required by clauses (b) and (c) (in each case to the extent payable with respect to the Term Loans), and (d) of this Section 2.2 shall be referred to herein as a "Designated Prepayment." Designated Prepayments shall be applied to reduce the subsequent scheduled repayments of Term Loans ratably. Designated Prepayments of Term Loans shall first be applied to Floating Rate Loans and to any Eurodollar Rate Loans maturing on such date and then to subsequently maturing Eurodollar Rate Loans in order of maturity. Notwithstanding the foregoing, so long as no Event of Default has occurred and is then continuing and at the Borrower's option, the Administrative Agent shall hold all Designated Prepayments to be applied to Eurodollar Rate Loans in escrow for the benefit of the Lenders and shall release such amounts upon the expiration of the Interest Periods applicable to any such Eurodollar Rate Loans being prepaid (it being understood and agreed that interest shall continue to accrue on the Obligations until such time as such prepayments are released from escrow and applied to reduce the Obligations); provided, however, that upon the occurrence and continuance of an Event of Default, such escrowed amounts may be applied to Eurodollar Rate Loans without regard to the expiration of any Interest Period and the Borrower shall make all payments under Section 3.4 resulting therefrom. No mandatory prepayment made pursuant to clause (b) or (c) of this Section 2.2 shall result in a corresponding reduction of the Revolving Loan Commitments unless so requested by the Borrower or required on the date of such mandatory prepayment by the Required Lenders.
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Samples: Credit Agreement (Roto-Rooter Inc)
Application of Designated Prepayments. Each mandatory prepayment required by clauses (b) and (c) (in each case to the extent payable with respect to the Term Loans), and (d) of this Section 2.2 shall be referred to herein as a "Designated Prepayment." Subject to the following, Designated Prepayments shall be applied to reduce the subsequent scheduled repayments of Term Loans ratably. The Administrative Agent, upon receipt of any mandatory prepayment required under Section 2.2 (b), (c) or (d), shall notify the Lenders holding Term Loans of such prepayment. Within five Business Days of receipt of such notice, each such Lender shall indicate whether it wishes to receive its ratable portion of such prepayment. A Lender's failure to respond to the Administrative Agent within such five Business Day period shall be deemed to constitute such Lender's acceptance of such prepayment. At the end of such five Business Day period, the Administrative Agent shall remit to those Lenders that accepted the applicable prepayment their allocable share of such prepayment. Designated Prepayments of Term Loans shall first be applied to Floating Rate Loans and to any Eurodollar Rate Loans maturing on such date and then to subsequently maturing Eurodollar Rate Loans in order of maturity. Notwithstanding the foregoing, so long as no Event of Default has occurred and is then continuing and at the Borrower's option, the Administrative Agent shall hold all Designated Prepayments to be applied to Eurodollar Rate Loans in escrow for the benefit of the Lenders and shall release such amounts upon the expiration of the Interest Periods applicable to any such Eurodollar Rate Loans being prepaid (it being understood and agreed that interest shall continue to accrue on the Obligations until such time as such prepayments are released from escrow and applied to reduce the Obligations); provided, however, that upon the occurrence and continuance of an Event of Default, such escrowed amounts may be applied to Eurodollar Rate Loans without regard to the expiration of any Interest Period and the Borrower shall make all payments under Section 3.4 resulting therefrom. No mandatory prepayment made pursuant to clause (b) or (c) of this Section 2.2 shall result in a corresponding reduction of the Revolving Loan Commitments unless so requested by the Borrower or required on the date of such mandatory prepayment by the Required Lenders.
Appears in 1 contract
Samples: Credit Agreement (Chemed Corp)
Application of Designated Prepayments. Each mandatory prepayment required by clauses (b) and (c) (in each case to the extent payable with respect to the Term Loans), and (d) of this Section 2.2 shall be referred to herein as a "Designated Prepayment." Designated Prepayments shall be allocated and applied to reduce the subsequent scheduled repayments of Obligations as follows:
(A) in the event both Term Loans ratably. and Revolving Loans are outstanding as of the date a Designated Prepayments Prepayment is required to be made, the amount of such Designated Prepayment shall be applied in equal amounts to the outstanding principal balances of the Term Loans shall and Revolving Loans, with each application being made first be applied to Floating the respective Term Loans and Revolving Loans which are Base Rate Loans until paid in full and then to any the respective Term Loans and Revolving Loans which are Eurodollar Rate Loans maturing on until the outstanding balance of the Revolving Loans is paid in full and the respective Revolving Credit Commitments of each Revolving Lender shall be permanently reduced by the amount of such date and then to subsequently maturing Eurodollar Rate Loans in order of maturity. Notwithstanding the foregoing, so long as no Event of Default has occurred and is then continuing and at the Borrower's option, the Administrative Agent shall hold all Designated Prepayments to be Prepayment applied to Eurodollar Rate its Revolving Loans in escrow for the benefit of the Lenders and shall release such amounts upon the expiration of the Interest Periods applicable to any such Eurodollar Rate Loans being prepaid (it being understood and agreed that interest shall continue to accrue on the Obligations until such time as such prepayments the Revolving Credit Commitments are released from escrow and applied reduced to reduce $52,000,000; and
(B) following the Obligations); provided, however, that upon the occurrence and continuance of an Event of Default, such escrowed amounts may be applied to Eurodollar Rate Loans without regard to the expiration of any Interest Period and the Borrower shall make all payments under Section 3.4 resulting therefrom. No mandatory prepayment made pursuant to clause (b) or (c) of this Section 2.2 shall result payment in a corresponding reduction full of the Revolving Loan Commitments unless so requested by Loans or in the Borrower or required on event there are no Revolving Loans outstanding as of the date a Designated Prepayment is required to be made, the remaining balance of (or entire amount of, in the event there are no Revolving Loans outstanding as of such mandatory prepayment by required payment date) each Designated Prepayment shall be applied solely to the Required Lendersoutstanding balances of the Term Loans in the order described in clause (A) above until paid in full.
Appears in 1 contract
Samples: Credit Agreement (Rhi Holdings Inc)
Application of Designated Prepayments. Each mandatory prepayment required by clauses (b) and ), (c) (in each case to the extent payable with respect to the Term Loans), and (d) of this Section 2.2 shall be referred to herein as a "Designated Prepayment." Designated Prepayments under clauses (b), (c)(i) and (d) of this Section 2.2 shall be applied (i) first to reduce repay the subsequent scheduled repayments then remaining installments of the Term B Loans ratablyon a pro rata basis and (ii) second, upon repayment in full of the Term B Loans, to prepay the Revolving Loans then outstanding (with no corresponding reduction in the Aggregate Revolving Loan Commitment). Designated Prepayments under clause (c)(ii) of this Section 2.2 shall be applied (i) first to repay the then remaining installments of the Term B Loans on a pro rata basis across that portion of the first twelve (12) such installments that remains unpaid at such time until each such installment shall have been reduced from $12,000,000 to $4,000,000; (ii) second, to prepay all then remaining installments of the Term B Loans on a pro rata basis, and (iii) third, upon repayment in full of the Term B Loans, to repay the Revolving Loans then outstanding (with no corresponding reduction in the Aggregate Revolving Loan Commitment). Designated Prepayments of Term Loans shall first be applied to Floating Rate Loans and to any Eurodollar Rate Loans maturing on such date and then to subsequently maturing Eurodollar Rate Loans in order of maturity. Notwithstanding the foregoing, so long as no Event of Default has occurred and is then continuing and at the Borrower's option, the Administrative Agent shall hold all Designated Prepayments to be applied to Eurodollar Rate Loans in escrow for the benefit of the Lenders and shall release such amounts upon the expiration of the Interest Periods applicable to any such Eurodollar Rate Loans being prepaid (it being understood and agreed that interest shall continue to accrue on the Obligations until such time as such prepayments are released from escrow and applied to reduce the Obligations); provided, however, that upon the occurrence and continuance of an Event of Default, such escrowed amounts may be applied to Eurodollar Rate Loans without regard to the expiration of any Interest Period and the Borrower shall make all payments under Section 3.4 resulting therefrom. No mandatory prepayment made pursuant to clause (b) or (c) of this Section 2.2 shall result in a corresponding reduction of the Revolving Loan Commitments unless so requested by the Borrower or required on the date of such mandatory prepayment by the Required Lenders.
Appears in 1 contract
Samples: Credit Agreement (Headwaters Inc)
Application of Designated Prepayments. Each mandatory prepayment required by clauses (a), (b) and ), (c) (in each case to the extent payable with respect to the Term Loans), and (d) of this Section 2.2 2.5(B)(i) shall be referred to herein as a "Designated PrepaymentDESIGNATED PREPAYMENT." Designated Prepayments shall be allocated and applied to reduce the subsequent scheduled repayments Obligations as follows:
(1) the amount of each Designated Prepayment shall be applied first ratably to the Tranche A Term Loans ratably. Designated Prepayments and the Tranche B Term Loans, with fifty percent (50%) of Term Loans shall first be each prepayment being applied to Floating Rate Loans unpaid installments in the order of maturity and fifty percent (50%) being applied to any Eurodollar Rate Loans maturing on such date and then to subsequently maturing Eurodollar Rate Loans unpaid installments in the inverse order of maturity. Notwithstanding the foregoing, so long as no Event of Default has occurred and is then continuing and at the Borrower's option, the Administrative Agent shall hold all Designated Prepayments to be applied to Eurodollar Rate Loans in escrow for the benefit of the Lenders and shall release such amounts upon the expiration of the Interest Periods applicable to any such Eurodollar Rate Loans being prepaid (it being understood and agreed that interest shall continue to accrue on the Obligations until such time as such prepayments are released from escrow and applied to reduce the Obligations); provided, however, that upon so long as any Tranche A Term Loans are outstanding, any Tranche B Term Loan Lender may decline all or any portion of a Designated Prepayment in an amount that shall not exceed the occurrence and continuance outstanding principal balance of an Event of Defaultthe Tranche A Term Loans, such escrowed amounts may which declined amount shall be applied to Eurodollar Rate the then remaining installments of the Tranche A Term Loans; and
(2) following the payment in full of the Tranche A Term Loans without regard to the expiration of any Interest Period and the Borrower Tranche B Term Loans, the amount of each Designated Prepayment shall make all payments under Section 3.4 resulting therefrom. No mandatory prepayment made pursuant be applied to clause repay Revolving Loans (bbut shall reduce Revolving Loan Commitments only at the option of the Required Lenders) or (c) of this Section 2.2 shall result and following the payment in a corresponding reduction full of the Revolving Loan Commitments unless so requested by Loans, the Borrower or required amount of each Designated Prepayment shall be applied first to interest on the date of such mandatory prepayment by Reimbursement Obligations, then to principal on the Required Lenders.Reimbursement
Appears in 1 contract
