Description of debt financing Sample Clauses

Description of debt financing. The Manager was prior to the Transaction, on behalf of the Group, conducting an evaluation of debt financing options. The Manager has chosen to finance the acquisition through a bond issue and negotiated commercial terms with a few Swedish bond investors. The main terms are as follows: Main debt terms Amount: SEK 375 million LTV 62.5% Maturity: 3.7 years Interest rate: Fixed rate coupon of 4.00% p.a., payable quarterly in arrears Price: Issued at 97.00% of the nominal amount Amortisation: Not applicable Maintenance • LTV < 75% covenants: • ICR > 1.75x Incurrence covenants • LTV < 70% • ICR > 2.00x Special undertakings • Negative pledge Call structure (American) • Make whole 36 months • Thereafter callable @ 100% + 50.0/25.0/10.0% of the coupon after 36/38/41 months respectively Security package: (i) first ranking share pledge in respect of all shares in each of the Issuer and all direct and indirect subsidiaries of the Issuer (including each partnership, each Target and each Property Owning Company), (ii) first ranking pledge over any insurance claims above a certain threshold, (iii) a first ranking pledge over each Intercompany Loans made to the direct and indirect subsidiaries of the Issuer, and (iv) first ranking pledge over mortgage certificates in the total Nominal Amount of at least the Allocated Loan Amount for the Properties securing all amounts outstanding under the Finance Documents and intragroup loans from the Issuer to the Property Owning Companies Initial fee: One-time fee of 2.00% of the loan amount (being in aggregate SEK 7,500,000) Sources: the Company The Company has issued a bond to the investors based on the commercial terms set out above. Based on the figures provided in the term sheets and cost efficient leases, the credit metrics of the Company are strong. Break-even rent (pre amortisation and dividends) is estimated to approximately SEK 196 per sqm in 2018, to be compared with the Company’s expected weighted average rent of approximately SEK 437 per sqm. This equals a theoretical rent decrease of 55%. ICR and the debt service coverage ratio (DSCR) are expected to amount to 2.7 times EBITDA, respectively in 2018.
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Description of debt financing. The Manager was prior to the Transaction, on behalf of the Group, conducting an evaluation of debt financing options. A request for a proposal was distributed to a number of banks in order to map the bank financing alternatives available to the Company. The Manager has also evaluated to finance the acquisition through a bond issue. Based on indicative terms from banks and other lenders, more detailed discussions were initiated with one of the banks. The main terms of the Debt Facility are as follows:
Sample 1Sample 2
Description of debt financing. The Manager has, on behalf of the Group, conducted an evaluation of debt financing options. A request for a proposal has been distributed to a number of Nordic banks in order to map the bank financing alternatives available to the Company. Based on the bank loan request process, more detailed discussions were initiated with SBAB Bank AB (publ). The terms of the Debt Facility are as follows:
Sample 1
Description of debt financing. The Manager has, on behalf of the Group, conducted an evaluation of debt financing options. A request for a proposal has been distributed to a number of Nordic banks in order to map the bank financing alternatives available to the Company. Based on the bank loan request process, more detailed discussions were initiated with SBAB Bank AB (publ). The terms of the Debt Facility are as follows: Main terms of the Debt Facility Lender: SBAB Bank AB (publ) Borrower: Each Target Company and the Subsidiaries Amount: SEK 505,000,000 LTV ~70% Maturity: 5 years Interest rate: ~2.04%* Amortization: 0% annually Covenants: Loan to value (LTV) ratio may not exceed 70% of the market value of each property in respect of the acquisition tranches, and may not exceed 75% of the market value of each property in respect of the refinancing tranches Undertakings: Customary representations and warranties, as well as general undertakings, including negative covenants regarding restrictions incurring additional financial indebtedness, providing security and carry out material changes to its business Ownership clause: If the Company ceases to own (directly or indirectly) 100% of the capital or voting rights in any of the real property owing subsidiaries or should any entity other than the Company or one of the parent companies acquire or otherwise gain control (directly or indirectly) over the capital or voting rights in a real property owing subsidiary Security package: Security package customary for real estate property financings, including mortgages over the Properties and a pledge over the shares of the Targets and the Subsidiaries. There are existing mortgage deeds corresponding to approximately SEK 363,555,000 on the Properties Initial fee: One-time arrangement fee of 0.15% of the loan amount (being SEK 757,500) *Average interest rate on the debt currently drawn Source: The Company The Company has to entered into a loan agreement with SBAB Bank AB (publ) based on the commercial terms set out above. In relation to the loans financing the acquisitions of the property Landskrona Rom 1 and part of the property Kävlinge Sandhammaren 1, the interest rate will not be fixed until an unconditional and irrevocable draw down request has been delivered to SBAB Bank AB (publ). As the draw down requests will be delivered in connection to the relevant Closing dates, the financial model is subject to risk of interest rate fluctuation. Further, the delivery of such draw down requests and the su...
Sample 1

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  • Financing Assignee shall use its reasonable best efforts to take, or cause to be taken, all actions and to do, or cause to be done, all things reasonably necessary, proper or advisable to arrange, obtain, and consummate the Debt Financing on the terms and conditions described in the Debt Commitment Letter on or prior to the Closing Date. Such actions shall include (i) maintaining in full force and effect the Debt Commitment Letter in the form provided to Assignor concurrently with the execution of this Agreement, (ii) satisfying on a timely basis all of the conditions precedent and covenants to the Debt Financing applicable to Assignee that are to be satisfied by Assignee, (iii) negotiating, executing, and delivering definitive documents (“Debt Financing Documents”) that reflect the terms contained in the Debt Commitment Letter (including, as necessary, agreeing to any requested changes to the commitments thereunder in accordance with any “flex” provisions contained in the Debt Commitment Letter or any related fee letter), in each case which terms shall not in any respect materially expand on the conditions to the funding of the Debt Financing Proceeds at the Closing or reduce the aggregate amount of the Debt Financing Proceeds available to be funded on the Closing Date, (iv) promptly commencing the syndication activities contemplated by the Debt Commitment Letter, if any, (v) drawing the full amount of the Debt Financing Proceeds, and (vi) fully enforcing its rights under the Debt Commitment Letter and the Debt Financing Documents in order to consummate the Debt Financing at or prior to the Closing. Assignee shall not, and shall not permit any of its Affiliates or representatives to, without the prior written consent of Assignor, take or fail to take any action or enter into any transaction that could reasonably be expected to materially impair, delay or prevent the consummation of the Debt Financing contemplated by the Debt Commitment Letter except as waived by lender. Assignee shall comply with all of its obligations under each of the Debt Financing Documents. Assignee shall not permit or consent to (i) any amendment, supplement or modification to be made to the Debt Commitment Letter if such amendment, supplement or modification would materially (a) change, expand or impose new conditions precedent to the funding of the Debt Financing Proceeds from those set forth therein on the date hereof; (b) change the timing of the funding of the Debt Financing Proceeds thereunder or reasonably be expected to impair, delay or prevent the availability of all or a portion of the Debt Financing Proceeds or the consummation of the transactions contemplated by this Agreement; (c) reduce the aggregate cash amount of the Debt Financing Proceeds (including by changing the amount of fees to be paid or original issue discount of the Debt Financing (except as set forth in any “flex” provisions existing on the date hereof)); or (d) otherwise adversely affect the ability of Assignee to consummate the transactions contemplated by this Agreement or the timing of the Closing; (ii) any waiver of any provision or remedy under the Debt Commitment Letter (other than a condition to funding in favor of the lenders thereunder); or (z) early termination of the Debt Commitment Letter. Notwithstanding the foregoing, in no event shall the failure of Assignee to obtain all or any part of the Debt Financing Proceeds prior to or on the Closing Date shall be permitted to delay or impair the Closing.

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