Hedging Covenant. (a) The Borrower shall have entered into an Interest Rate Cap within thirty (30) days following the Closing Date to hedge interest rate risk with respect to the obligations of the Borrower to pay interest on the Loans hereunder, on the following terms:
Hedging Covenant. Hedge Trigger Event. Within sixty (60) days of the occurrence of a Hedge Trigger Event (and provided such Hedge Trigger Event is still continuing), the Borrower (or, if applicable, GreenSky or the Seller on Borrower’s behalf) shall enter into a Qualified Hedging Transaction pursuant to a Qualified Hedging Agreement to hedge interest rate risk for a notional amount equal to or about the Aggregate Loan Principal Balance (or such other amount reasonably acceptable to the Administrative Agent, including pursuant to an amortization table to reflect projected changes in the Aggregate Loan Principal Balance) and a strike rate as agreed to by the Administrative Agent and the Borrower; provided, however, that the Administrative Agent shall not require any new Qualified Hedging Transaction to be obtained by the Borrower (or, if applicable, GreenSky or the Seller on Borrower’s behalf) at any time if the aggregate notional amount of such new Qualified Hedging Transaction and all existing Qualified Hedging Transactions (if any) at such time would exceed the Aggregate Loan Principal Balance at such time.
Hedging Covenant. Within thirty (30) days of the Third Amendment Effective Date, the Borrower (or, if applicable, GreenSky or the Seller on Borrower’s behalf) shall enter into a Qualified Hedging Transaction that is a 3-month LIBO Rate interest rate cap with a strike price of 2.50% pursuant to a Qualified Hedging Agreement for a notional amount equal to $555,000,000 with an amortization schedule to reflect a fixed amount of $555,000,000 for the first twelve months and amortization over the next twenty-four months based on the projected amortization of the Aggregate Loan Principal Balance as determined by the Administrative Agent in its reasonable discretion in consultation with the Borrower and the Servicer. (a)
Hedging Covenant
