General Debt Basket Clause Samples

The General Debt Basket clause sets a limit on the amount and types of debt a borrower can incur outside of specifically permitted categories. Typically, it allows the borrower to take on additional debt up to a certain dollar amount or percentage of assets, regardless of the purpose or form of the debt, as long as it does not breach the agreed threshold. This clause provides flexibility for the borrower to manage unforeseen financing needs while protecting the lender by capping overall indebtedness and reducing the risk of over-leverage.
General Debt Basket. Limited to junior lien and unsecured debt, in an aggregate amount not to exceed the sum of (x) an unlimited amount subject to compliance with the Borrower’s Total Net Leverage Ratio (as calculated on a consolidated basis, with its restricted subsidiaries, the “TNLR”) as of the Plan Effective Date and (y) an amount of up to $100.0 million; provided that (1) such indebtedness, if secured, shall only be secured by the Collateral and if guaranteed, shall only be guaranteed by the Guarantors, (2) the rate of cash interest on such indebtedness shall not exceed the cash interest rate on the Take-Back First Lien Facility at the time such indebtedness is incurred and (3) to the extent such indebtedness has terms (other than margin, pricing, call protection, maturity (which shall be at least 6 months outside the Take-Back First Lien Facility maturity), fees and other economics and prepayment and redemption terms) that are more restrictive than those set forth in the Take-Back First Lien Facility (as reasonably determined by the Borrower), then such covenants must be added for the benefit of the Take-Back First Lien Facility to the extent such indebtedness is outstanding (which covenants may be in the form of a supplement to the Take-Back First Lien Facility signed by the Borrower and delivered to the Administrative Agent, and will not require the consent of the Administrative Agent or any Lender); • HUD Loans. Loans from the U.S. Department of Housing and Urban Development (and Liens securing such loans) shall be permitted (such loans, the “HUD Loans”); provided that, (u) the borrower of such HUD Loans (the “HUD Loan Borrower”) shall not have or incur any other indebtedness for borrowed money (other than Government Loans and Ordinary Course Loans), (v) all proceeds of such HUD Loans shall be subject to a mandatory prepayment of the Take-Back First Lien Term Loans, (w) the Lenders agree to promptly release any liens on assets of, and guarantees (and other obligations) of, the HUD Loan Borrower, (x) any such loan shall be subject to a minimum LTV ratio of 67.5% utilizing the valuation methodology from the appraisal, in each case, actually utilized by HUD, to set the “value” for LTV calculation purposes, (y) the Borrower shall deliver such HUD utilized appraisal and such other information reasonably requested by the Lenders and (z) the equity interests of the HUD Loan Borrower shall continue to be pledged to the Take-Back First Lien Facility to the extent required to b...
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Related to General Debt Basket

  • Security and Financial Indebtedness (a) No Security or Quasi-Security exists over all or any of the present or future assets of any member of the Group other than as permitted by this Agreement. (b) No member of the Group has any Financial Indebtedness outstanding other than as permitted by this Agreement.

  • FEDERAL DEBT The Supplier certifies that it is non-delinquent in its repayment of any federal debt. Examples of relevant debt include delinquent payroll and other taxes, audit disallowance, and benefit overpayments.

  • Additional Indebtedness This Indenture does not restrict the Corporation from incurring additional indebtedness for borrowed money or other obligations or liabilities (including Senior Indebtedness) or mortgaging, pledging or charging its properties to secure any indebtedness or obligations or liabilities.

  • Limitation on Additional Indebtedness The Issuer acknowledges that the Borrower has incurred the Senior Debt which is prior as to payment and security to the payment of the Loan and all amounts payable hereunder by the Borrower. The Borrower may incur additional Long Term Debt on a parity with or prior to the Loan as to payment and security (“Additional Parity Indebtedness”) for any business purpose subject to the following conditions: DRAFT (i) Prior to incurring such Additional Parity Indebtedness, the Borrower must deliver to the Issuer a written certificate of the Chief Financial Officer of the Borrower stating (A) that the net Revenues Available for Debt Service of the Borrower for each of the last 2 Fiscal Years preceding the date on which the proposed long Term Debt is to be incurred were at least 100% of the Principal and Interest Requirements on all then- existing Long Term Debt for such Fiscal Years, and (B) that the projected Net Revenues Available for Debt Service of the Borrower for each Fiscal Year beginning after the Fiscal Year in which the proposed Long Term Debt is to be incurred, but before the final stated maturity of the Bonds, will not be less than 100% of the Principal and Interest Requirements on all Long Term Debt (including such requirements for the proposed Long Term Debt but excluding such requirements for any then outstanding Long Term Debt to be refinanced by the proposed Long Term Debt) for such Fiscal Year. (ii) This Loan Agreement shall be in effect and no Event of Default shall exist hereunder. (iii) The Additional Parity Indebtedness shall not cause impairment of the security given to the Issuer by the Collateral Account Security Agreement and Account Control Agreement.

  • Prepayments, Etc. of Indebtedness (a) None of the Covenant Parties shall, nor shall they permit any of their Restricted Subsidiaries to, directly or indirectly, prepay, redeem, purchase, defease or otherwise satisfy prior to the scheduled maturity thereof in any manner (it being understood that payments of regularly scheduled interest shall be permitted) the Senior Subordinated Debt, any subordinated Indebtedness incurred under Section 7.03(g) or any other Indebtedness that is required to be subordinated to the Obligations pursuant to the terms of the Loan Documents, but excluding any Existing Indebtedness or Outstanding Indebtedness (collectively, “Junior Financing”) or make any payment in violation of any subordination terms of any Junior Financing Documentation, except (i) the refinancing thereof with the Net Proceeds of any Indebtedness (to the extent such Indebtedness constitutes a Permitted Refinancing and, if such Indebtedness was originally incurred under Section 7.03(g), is permitted pursuant to Section 7.03(g)), to the extent not required to prepay any Loans pursuant to Section 2.05(b), (ii) the conversion of any Junior Financing to Equity Interests (other than Disqualified Equity Interests) of the Company or any of its direct or indirect parents, (iii) the prepayment of Indebtedness of any Covenant Party or any Restricted Subsidiary of a Covenant Party to the extent permitted by the Collateral Documents, (iv) any payments in respect of Senior Subordinated Debt constituting bridge loans with the proceeds of any other Junior Financing and (v) prepayments, redemptions, purchases, defeasances and other payments in respect of Junior Financings prior to their scheduled maturity in an aggregate amount not to exceed $250,000,000 plus, if the Total Leverage Ratio calculated on a Pro Forma Basis is less than or equal to 7.00 to 1.00, the portion, if any, of the Cumulative Credit on such date that ▇▇▇▇▇▇▇ elects to apply to this paragraph, such election to be specified in a written notice of a Responsible Officer of ▇▇▇▇▇▇▇ calculating in reasonable detail the amount of Cumulative Credit immediately prior to such election and the amount thereof elected to be so applied. (b) None of the Covenant Parties shall, nor shall they permit any of their Restricted Subsidiaries to, directly or indirectly, amend, modify or change in any manner materially adverse to the interests of the Lenders any term or condition of any Junior Financing Documentation without the consent of the Administrative Agent (which consent shall not be unreasonably withheld).