Incremental Commitments and Loans Clause Samples
The "Incremental Commitments and Loans" clause allows for the borrower to request additional loan amounts or commitments from existing or new lenders under the terms of an existing credit agreement. This process typically involves the borrower notifying the administrative agent and obtaining lender consent, with the new loans being subject to the same or similar terms as the original facility. The core function of this clause is to provide flexibility for the borrower to access additional financing as needed, without the need to negotiate an entirely new loan agreement, thereby streamlining the process and addressing future funding requirements efficiently.
Incremental Commitments and Loans. The Borrower may, at any time after the Amendment No. 3 Effective Date by notice to the Administrative Agent, request:
(a) one or more increases in the aggregate amount of the Tranche 2 Revolving Credit Commitments hereunder by (i) having an existing Tranche 2 Revolving Credit Lender increase the amount of its Tranche 2 Revolving Credit Commitment then in effect and/or (ii) adding as a new Tranche 2 Revolving Credit Lender with a new Dollar Revolving Credit Sub-Commitment or Multicurrency Revolving Sub-Commitment hereunder any Person which is not then a Dollar Revolving Credit Lender or a Multicurrency Revolving Credit Lender, as applicable (each such Lender or Person, an “Incremental Revolving Credit Lender”; and each such increase by an Incremental Revolving Credit Lender, an “Incremental Revolving Credit Commitment”); or
(b) one or more additional tranches of term loans in Dollars hereunder by having an existing Term Lender or any other Person provide such additional term loan (each such Lender or Person, an “Incremental Term Lender” and, together with an Incremental Revolving Credit Lender, each an “Incremental Lender”; each such additional term loan by an Incremental Term Lender, an “Incremental Term Loan” and the commitment of an Incremental Term Lender to provide an Incremental Term Loan, an “Incremental Term Loan Commitment”); which notice shall specify the name of each proposed Incremental Lender, the amount of such Incremental Lender’s Incremental Revolving Credit Commitment (and whether such increase is in respect of the Dollar Revolving Credit Sub-Commitment or the Multicurrency Revolving Credit Sub-Commitment) or Incremental Term Loan Commitment, as applicable, the date on which such Commitment shall be effective (the “Incremental Loan Effective Date”) (which shall be a Business Day at least three Business Days after delivery of such notice and 30 days prior to (x) in respect of an Incremental Revolving Credit Commitment, the Tranche 2 Revolving Credit Commitment Termination Date or (y) in respect of an Incremental Term Loan Commitment, the Tranche 2 Term Loan Maturity Date); provided that each such Incremental Lender shall be subject to the prior written consent of the Administrative Agent (such consent not to be unreasonably withheld) if such consent would be required under Section 9.04(b) for an assignment of Revolving Credit Commitments or Term Loans, as applicable, to such Incremental Lender; and provided, further, that:
(i) the aggregate...
Incremental Commitments and Loans. Section 2.20 of the Credit Agreement shall be amended as follows: (a) clause (i) of the second proviso of the first sentence thereof shall be amended by inserting at the end thereof, immediately prior to the semi-colon, the following: “(it being understood that such amount shall not be reduced by the amount of the Incremental Term Loans contemplated by Section 4(b) of Amendment No. 4)”; and (b) clause (ii) of the second proviso of the first sentence thereof shall be amended and restated in its entirety to read as follows: “
Incremental Commitments and Loans. A new Section 2.20 of the Credit Agreement shall be inserted, immediately following Section 2.19 of the Credit Agreement, to read as follows (and the Table of Contents of the Credit Agreement will be deemed amended to refer to such new Section):