Floating Rate Indebtedness Clause Samples
The Floating Rate Indebtedness clause defines debt obligations whose interest payments fluctuate based on a reference interest rate, such as LIBOR or the prime rate, rather than remaining fixed. In practice, this means that the amount of interest a borrower pays can increase or decrease over time, depending on changes in the underlying benchmark rate. This clause typically applies to loans or bonds where the interest rate is periodically adjusted according to market conditions. Its core function is to allocate the risk of interest rate changes between the borrower and lender, ensuring both parties understand how payment amounts may vary over the life of the debt.
Floating Rate Indebtedness. The ratio of (i) Floating Rate Indebtedness of the Parent and its Subsidiaries determined on a consolidated basis to (ii) Total Asset Value, to exceed 0.35 to 1.00 at any time.
Floating Rate Indebtedness. The Parent and the Borrower will not, and will not permit any of their respective Subsidiaries or Unconsolidated Affiliates to, incur, assume or suffer to exist at any time Floating Rate Indebtedness in an aggregate outstanding principal amount in excess of one-third of all Indebtedness of the Parent, its Subsidiaries and its Unconsolidated Affiliates determined on a consolidated basis.
Floating Rate Indebtedness. The Parent shall not, and shall not permit any Subsidiary to, incur, assume or suffer to exist Floating Rate Indebtedness (which shall include the Parent’s Ownership Share of the Floating Rate Indebtedness of its Unconsolidated Affiliates) in an aggregate outstanding principal amount in excess of 35.0% of the aggregate amount of Indebtedness of the Parent and its Subsidiaries determined on a consolidated basis and the Parent’s Ownership Share of the Indebtedness of its Unconsolidated Affiliates at any time.
Floating Rate Indebtedness. Floating Rate Indebtedness (includes outstanding Loans and excludes low-floater bonds and Debt with interest rate protection) $ ------------- - Maximum (Section 6.12) $225,000,000
Floating Rate Indebtedness. The Parent shall not, and shall not permit any Subsidiary to, incur, assume or suffer to exist Floating Rate Indebtedness (excluding Loans outstanding hereunder but including the Parent’s Ownership Share of the Floating Rate Indebtedness of its Consolidated Affiliates and Unconsolidated Affiliates) in an aggregate outstanding principal amount in excess of 35.0% of the aggregate amount of Indebtedness of the Parent and its Subsidiaries determined on a consolidated basis and the Parent’s Ownership Share of the Indebtedness of its Unconsolidated Affiliates at any time.”
(m) The Credit Agreement is hereby further amended by deleting Section 10.1(i) in its entirety and substituting in its place the following:
(i) [Intentionally Deleted.]”
(n) The Credit Agreement is hereby further amended by deleting clauses (ii) and (iii) of Section 10.1(j) in its entirety and substituting in its place the following:
Floating Rate Indebtedness. The REIT Guarantor and the Borrower shall not, and shall not permit any Subsidiary to, incur, assume or suffer to exist Floating Rate Indebtedness in an aggregate outstanding principal amount in excess of 30.0% of Total Indebtedness at any time.
Floating Rate Indebtedness. Have outstanding at any time Floating Rate Indebtedness in excess of $225,000,000.00. For this purpose, the amount of Floating Rate Indebtedness deemed to be outstanding under this Credit Agreement shall be equal to the outstanding aggregate principal amount of all Loans made by all Banks hereunder.
Floating Rate Indebtedness. The Parent and the Borrower shall not permit the ratio of (i) Floating Rate Indebtedness of the Parent and its Subsidiaries determined on a consolidated basis to (ii) Total Indebtedness, to exceed 0.35 to 1.00 at any time.