Incremental Indebtedness Sample Clauses
The Incremental Indebtedness clause allows a borrower to incur additional debt beyond the original loan amount under specified conditions. Typically, this clause outlines the maximum amount of incremental debt permitted, the types of debt instruments allowed, and any requirements for lender consent or compliance with financial covenants. Its core practical function is to provide the borrower with flexibility to access extra financing as needed, while protecting lenders by setting clear limits and conditions on such additional borrowing.
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Incremental Indebtedness. The Company may incur additional pari passu or junior indebtedness equal to the amount of any New Notes redeemed.
Incremental Indebtedness. (a) Notwithstanding anything in Clause 6.2 (
Incremental Indebtedness. (a) Notwithstanding anything in Clause 6.2 (Payment of Secured Incremental Liabilities) of the Intercreditor Agreement, where any Obligor makes any voluntary payment, repayment or prepayment in the nature of principal on all or any part of any Incremental Indebtedness (an “Incremental Indebtedness Voluntary Prepayment”), the Borrower shall (and shall ensure that each other member of the Borrower Group will), on or about the same date, prepay the Facility A Loans in accordance with Clause 8.9 (Voluntary prepayment of Facility A Loans) by an amount representing a fraction of all Facility A Loans where:
(i) the numerator of such fraction is the amount the Incremental Indebtedness Voluntary Prepayment; and
(ii) the denominator of such fraction is the aggregate principal amount of all Incremental Indebtedness immediately prior to the Incremental Indebtedness Voluntary Prepayment.
(b) Paragraph (a) above does not apply where:
(i) no Event of Default has occurred and is continuing; and
(ii) on the date of the Incremental Indebtedness Voluntary Prepayment:
(A) the Debt (but without taking into account the effect that Incremental Indebtedness Voluntary Prepayment) as of the last Relevant Date falling on or before the date of the Incremental Indebtedness Voluntary Prepayment; to:
(B) the Consolidated Adjusted EBITDA for the Relevant Period ending on the Relevant Date described in paragraph (A) above, is less than or equal to 3.50 to 1, as evidenced by a Compliance Certificate delivered to the Agent on or before the date of such incurrence, setting out (in reasonable detail) computations as to compliance with the above ratio.