Financing Mandatory Prepayment Clause Samples

Financing Mandatory Prepayment. If the Credit Parties or any of their Subsidiaries close one or more equity financings (excluding the Deepkloof Private Placement, the Liberty Private Placement, the PTM Public Offering and any intercompany financings between Credit Parties or their Subsidiaries), the Borrower shall pay or cause to be paid 50% of the proceeds of all such financings, net of reasonable financing costs, to the Lenders in prepayment of the Facility.

Financing Mandatory Prepayment. Subject to Section 2.5, Section 3.5 of the A&R CA, as previously amended by Section 2.4 of the First Modification Agreement, is hereby amended by deleting the reference therein to “March 31, 2017” and replacing it with “June 30, 2017”.

Financing Mandatory Prepayment. The Credit Parties shall (i) use the first US$20 million of the proceeds from the First Required Financing (net of reasonable financing costs unless the net proceeds from the First Required Financing are sufficient to pay US$20 million to the Lenders) to reduce the Facility Indebtedness and (ii) subject to the immediately following sentence, use the first US$20 million of the proceeds from the Second Required Financing (net of reasonable financing costs unless the net proceeds from the Second Required Financing are sufficient to pay US$20 million to the Lenders) to reduce the Facility Indebtedness. If the Credit Parties elect to apply more than US$20 million of the proceeds from the First Required Financing towards repayment of the Facility Indebtedness (such excess amount being the “First Financing Excess”), the Credit Parties shall only be required to use the first US$ 20 million of the proceeds from the Second Required Financing (net of reasonable financing costs unless the net proceeds from the First Required Financing are sufficient to pay US$20 million to the Lenders) less the First Financing Excess to reduce the Facility Indebtedness. If the Credit Parties or any of the Subsidiaries close one or more equity or debt financings (excluding intercompany financings between Credit Parties or the Subsidiaries, the First Required Financing and the Second Required Financing) having a value exceeding $500,000 in the aggregate, the Borrower shall pay or cause to be paid 50% of the proceeds of such financings, net of reasonable financing costs (the “Cash Sweep”), to the Production Payment Termination Fee Holder in prepayment of the Production Payment Termination Obligations until such obligations are paid in full and discharged and thereafter to the Lenders in prepayment of the Facility. Notwithstanding the above, the Cash Sweep shall not apply to any equity or debt financing occurring (i) during the period beginning on the date the First Lien Facility Indebtedness is paid in full and ending on the First Outside Financing Date and (ii) during the period after the First Outside Financing Date and ending on the Second Financing Outside Date with such equity financings referred to in (i) and (ii) above to be dealt with in accordance with the first paragraph of this Section 3.3.

Financing Mandatory Prepayment. Section 3.5 of the A&R CA, as previously amended by the First Modification Agreement, the Second Modification Agreement and the Third Modification Agreement, is hereby amended by deleting references to “$1,000,000” and “50%” and replacing them with “$500,000” and “60%”, respectively.

Financing Mandatory Prepayment. The Credit Parties shall (i) use all the proceeds from the First Required Financing (net of reasonable financing costs) firstly to repay and discharge the First Lien Facility Indebtedness and secondly, to reduce the Facility Indebtedness and (ii) use all the proceeds from the Second Required Financing (net of reasonable financing costs) firstly to repay and discharge the First Lien Facility Indebtedness and secondly, to reduce the Facility Indebtedness. If the Credit Parties or any of the Subsidiaries close one or more equity or debt financings (excluding intercompany financings between Credit Parties or the Subsidiaries, the First Required Financing and the Second Required Financing) having a value exceeding $500,000 in the aggregate, the Borrower shall pay or cause to be paid 50% of the proceeds of such financings, net of reasonable financing costs, to the Production Payment Termination Fee Holder in prepayment of the Production Payment Termination Obligations until such obligations are paid in full and discharged and thereafter to the Lenders in prepayment of the Facility.