Interest and Applicable Margins. (a) Borrower shall pay interest to Agent, for the ratable benefit of Lenders in accordance with the various Loans being made by each Lender, in arrears on each applicable Interest Payment Date, at the following rates: (i) with respect to the Revolving Credit Advances, the Index Rate plus the Applicable Revolver Index Margin per annum or, at the election of Borrower, the applicable LIBOR Rate plus the Applicable Revolver LIBOR Margin per annum, based on the aggregate Revolving Credit Advances outstanding from time to time; and (ii) with respect to the Swing Line Loan, the Index Rate plus the Applicable Revolver Index Margin per annum. As of the Closing Date, the Applicable Margins are as follows: ------------------------------------------------------ Applicable Revolver Index Margin 1.75% ------------------------------------------------------ Applicable Revolver LIBOR Margin 3.00% ------------------------------------------------------ Applicable L/C Margin 3.00% ------------------------------------------------------ The Applicable Margins shall be adjusted (up or down) prospectively on a quarterly basis as determined by Borrower's consolidated financial performance, commencing with the first day of the first calendar month that occurs more than 5 days after delivery of Borrower's quarterly Financial Statements to Lenders for the Fiscal Quarter ending September 30, 2003. Adjustments in Applicable Margins shall be determined by reference to the following grids: ---------------------------------------------------------------------- If Total Leverage Level of Ratio is: Applicable Margins: ---------------------------------------------------------------------- >=4.75 to 1.0 Level I ---------------------------------------------------------------------- >=4.00 to 1.0, but Level II <4.75 to 1.0 ---------------------------------------------------------------------- <4.00 to 1.0 Level III ---------------------------------------------------------------------- ---------------------------------------------------------------------- Applicable Margins ---------------------------------------------------------------------- Level I Level II Level III ---------------------------------------------------------------------- Applicable Revolver Index Margin 2.00% 1.75% 1.50% ---------------------------------------------------------------------- Applicable Revolver LIBOR Margin 3.25% 3.00% 2.75% ---------------------------------------------------------------------- Applicable L/C Margin 3.25% 3.00% 2.75% ---------------------------------------------------------------------- All adjustments in the Applicable Margins after September 30, 2003 shall be implemented quarterly on a prospective basis, for each calendar month commencing at least 5 days after the date of delivery to Lenders of the quarterly unaudited or annual audited (as applicable) Financial Statements evidencing the need for an adjustment. Concurrently with the delivery of those Financial Statements, Borrower shall deliver to Agent and Lenders a certificate, signed by its chief financial officer, setting forth in reasonable detail the basis for the continuance of, or any change in, the Applicable Margins. Failure to timely deliver such Financial Statements shall, in addition to any other remedy provided for in this Agreement, result in an increase in the Applicable Margins to the highest level set forth in the foregoing grid, until the first day of the first calendar month following the delivery of those Financial Statements demonstrating that such an increase is not required. If a Default or Event of Default has occurred and is continuing at the time any reduction in the Applicable Margins is to be implemented, that reduction shall be deferred until the first day of the first calendar month following the date on which such Default or Event of Default is waived or cured.
Appears in 2 contracts
Samples: Credit Agreement (Universal Hospital Services Inc), Credit Agreement (Universal Hospital Services Inc)
Interest and Applicable Margins. (a) Borrower shall pay interest to Agent, for the ratable benefit of Lenders in accordance with the various Loans being made by each Lender, in arrears on each applicable Interest Payment Date, at the following rates: (i) with respect to the Revolving Credit Advances, the Index Rate plus the Applicable Revolver Index Margin per annum or, at the election of Borrower, the applicable LIBOR Rate plus the Applicable Revolver LIBOR Margin per annum, based on the aggregate Revolving Credit Advances outstanding from time to time; and (ii) with respect to the Swing Line Loan, the Index Rate plus the Applicable Revolver Index Margin per annum. As of the Restatement Closing Date, the Applicable Margins are as follows: ------------------------------------------------------ ------------------------------------------------------------ Applicable Revolver Index Margin 1.751.00% ------------------------------------------------------ ------------------------------------------------------------ Applicable Revolver LIBOR Margin 3.002.25% ------------------------------------------------------ ------------------------------------------------------------ Applicable L/C Margin 3.002.25% ------------------------------------------------------ ------------------------------------------------------------ The Applicable Margins shall be adjusted (up or down) prospectively on a quarterly basis as determined by Borrower's consolidated financial performance, commencing with the first day of the first calendar month that occurs more than 5 days after delivery of Borrower's quarterly Financial Statements to Lenders for the Fiscal Quarter ending September June 30, 20032005. Adjustments in Applicable Margins shall be determined by reference to the following grids: ---------------------------------------------------------------------- -------------------------------------------------------------------------------- If Total Leverage Level of Ratio is: Applicable Margins: ---------------------------------------------------------------------- >=4.75 to 1.0 Level I ---------------------------------------------------------------------- >=4.00 to 1.0, but Level II <4.75 to 1.0 ---------------------------------------------------------------------- <4.00 to 1.0 Level III ---------------------------------------------------------------------- ---------------------------------------------------------------------- Applicable Margins ---------------------------------------------------------------------- Level I Level II Level III ---------------------------------------------------------------------- Applicable Revolver Index Margin 2.00% 1.75% 1.50% ---------------------------------------------------------------------- Applicable Revolver LIBOR Margin 3.25% 3.00% 2.75% ---------------------------------------------------------------------- Applicable L/C Margin 3.25% 3.00% 2.75% ---------------------------------------------------------------------- All adjustments in the Applicable Margins after September 30, 2003 shall be implemented quarterly on a prospective basis, for each calendar month commencing at least 5 days after the date of delivery to Lenders of the quarterly unaudited or annual audited (as applicable) Financial Statements evidencing the need for an adjustment. Concurrently with the delivery of those Financial Statements, Borrower shall deliver to Agent and Lenders a certificate, signed by its chief financial officer, setting forth in reasonable detail the basis for the continuance of, or any change in, the Applicable Margins. Failure to timely deliver such Financial Statements shall, in addition to any other remedy provided for in this Agreement, result in an increase in the Applicable Margins to the highest level set forth in the foregoing grid, until the first day of the first calendar month following the delivery of those Financial Statements demonstrating that such an increase is not required. If a Default or Event of Default has occurred and is continuing at the time any reduction in the Applicable Margins is to be implemented, that reduction shall be deferred until the first day of the first calendar month following the date on which such Default or Event of Default is waived or cured.-------- ------------------ --------------------------------------------------------------------------------
Appears in 1 contract
Interest and Applicable Margins. (a) Borrower shall pay interest to Administrative Agent, for the ratable benefit of Lenders in accordance with the various Loans being made by each Lender, in arrears on each applicable Interest Payment Date, at the following rates: (i) with respect to the Revolving Credit Advances, the Index Rate plus the Applicable Revolver Index Margin per annum or, at the election of Borrower, the applicable LIBOR Rate plus the Applicable Revolver LIBOR Margin per annum, based on the aggregate Revolving Credit Advances outstanding from time to time; and (ii) with respect to the Swing Line Loan, the Index Rate plus the Applicable Revolver Index Margin per annum. As of the Closing Date, the Applicable Margins are as follows: ------------------------------------------------------ Applicable Revolver Index Margin 1.752.50% ------------------------------------------------------ Applicable Revolver LIBOR Margin 3.003.50% ------------------------------------------------------ Applicable L/C Margin 3.003.50% ------------------------------------------------------ Applicable Unused Line Fee Margin 0.75% The Applicable Margins shall may be adjusted (up or down) prospectively on a quarterly basis as determined by Borrower's consolidated financial performance, commencing with the first day of the first calendar month that occurs more than 5 days after delivery of Borrower's quarterly Financial Statements to Lenders for the Fiscal Quarter ending September 30, 2003. Adjustments in Applicable Margins shall be determined by reference to the following grids: ---------------------------------------------------------------------- If Total Leverage Level of Ratio is----------------------------------------------------------------- LEVEL OF IF BORROWING AVAILABILITY IS: Applicable MarginsAPPLICABLE MARGIN: ---------------------------------------------------------------------- >=4.75 to 1.0 ----------------------------------------------------------------- > $100,000,000 Level I ---------------------------------------------------------------------- >=4.00 to 1.0----------------------------------------------------------------- > $75,000,000, but < or = $100,000,000 Level II <4.75 to 1.0 ---------------------------------------------------------------------- <4.00 to 1.0 ----------------------------------------------------------------- > $40,000,000, but < or = $75,000,000 Level III ---------------------------------------------------------------------- ---------------------------------------------------------------------- ----------------------------------------------------------------- < or = $40,000,000 Level IV ----------------------------------------------------------------- ---------------------------------------------------------------------------------------- APPLICABLE MARGINS ---------------------------------------------------------------------------------------- LEVEL I LEVEL II LEVEL III LEVEL IV ---------------------------------------------------------------------------------------- Applicable Margins ---------------------------------------------------------------------- Level I Level II Level III ---------------------------------------------------------------------- Applicable Revolver Index Margin 2.002.25% 1.752.50% 1.502.75% ---------------------------------------------------------------------- 3.00% ------------------------------------------------------------------------------------- Applicable Revolver LIBOR Margin 3.25% 3.003.50% 2.753.75% ---------------------------------------------------------------------- 4.00% ------------------------------------------------------------------------------------- Applicable L/C Margin 3.25% 3.003.50% 2.753.75% ---------------------------------------------------------------------- All adjustments 4.00% ------------------------------------------------------------------------------------- Applicable Unused Line Fee Margin 1.00% 0.75% 0.50% 0.50% ------------------------------------------------------------------------------------- Adjustments in the Applicable Margins after September 30commencing with the Fiscal Quarter ending March 31, 2003 2004 shall be implemented quarterly on a prospective basis, for each calendar month commencing at least 5 days on the date which is two (2) Business Days after the date of delivery to Lenders the Agents of the quarterly unaudited or annual audited (Borrowing Base Certificate dated and accurate as applicable) Financial Statements of the last day of the most recently completed Fiscal Quarter evidencing the need for an adjustment. Concurrently with the delivery of those Financial Statementssuch Borrowing Base Certificate, Borrower shall deliver to Agent Agents and Lenders a certificate, signed by its chief financial officera Responsible Officer, setting forth in reasonable detail the basis for the continuance continuation of, or any change in, the Applicable Margins. Failure to timely deliver such Financial Statements quarter-end Borrowing Base Certificate shall, in addition to any other remedy provided for in this Agreement, result in an increase in the Applicable Margins to the highest level set forth in the foregoing grid, grid until the first day of the first calendar month following the delivery of those Financial Statements month in which a quarter-end Borrowing Base Certificate is delivered demonstrating that such an increase is not required. If a Default or an Event of Default has occurred and is continuing at the time any reduction in the Applicable Margins is to be implemented, that reduction shall be deferred until the first day of the first calendar month following the date on month in which such Default or Event of Default is waived or cured.
Appears in 1 contract
Interest and Applicable Margins. (a) Borrower Borrowers shall pay interest to Agent or Revolving Credit Agent, as appropriate, for the ratable benefit of Lenders in accordance with the various Loans being made by each Lender, in arrears on each applicable Interest Payment Date, at the following rates: (i) with respect to the Revolving Credit Advances, the Index Rate plus the Applicable Revolver Index Margin per annum or, at the election of BorrowerBorrower Representative, the applicable LIBOR Rate plus the Applicable Revolver LIBOR Margin per annum, based on the aggregate Revolving Credit Advances outstanding from time to time; and (ii) with respect to the Swing Line Term Loan, the Index Rate plus the Applicable Revolver Term Loan Index Margin per annum or, at the election of Borrower Representative, the applicable LIBOR Rate plus the Applicable Term Loan LIBOR Margin per annum. As of the Closing Date, the Applicable Margins are as follows: ------------------------------------------------------ Applicable Revolver Index Margin 1.751.25% ------------------------------------------------------ Applicable Revolver LIBOR Margin 3.002.75% ------------------------------------------------------ Applicable Term Loan Index Margin 1.25% Applicable Term Loan LIBOR Margin 2.75% Applicable L/C Margin 3.002.75% ------------------------------------------------------ The Applicable Margins shall be adjusted (up or down) prospectively on a quarterly basis as determined by Borrower's Agent and Revolving Credit Agent based upon Borrowers' consolidated financial performanceperformance as set forth in the Financial Statements, commencing with the first day of the first calendar month that occurs more than 5 days after delivery of Borrower's Borrowers' quarterly Financial Statements to Lenders for the Fiscal Quarter ending September 30July 31, 20032002, and likewise each Fiscal Quarter thereafter. Adjustments in Applicable Margins shall be determined by reference to the following grids: ---------------------------------------------------------------------- If Total Leverage Level of Ratio is--------------------------------------- ------------------------------------- IF LEVERAGE RATIO IS: Applicable MarginsLEVEL OF APPLICABLE MARGINS: ---------------------------------------------------------------------- >=4.75 to 1.0 --------------------------------------- ------------------------------------- less than 2.00 Level I ---------------------------------------------------------------------- >=4.00 to 1.0--------------------------------------- ------------------------------------- less than 2.50, but greater than or equal to 2.00 Level II <4.75 --------------------------------------- ------------------------------------- greater than or equal to 1.0 ---------------------------------------------------------------------- <4.00 to 1.0 2.50 Level III ---------------------------------------------------------------------- ---------------------------------------------------------------------- Applicable Margins ---------------------------------------------------------------------- Level ------------------------------------------------------------------------------ APPLICABLE MARGINS ------------------------------------------------------------------------------ LEVEL I Level LEVEL II Level LEVEL III ---------------------------------------------------------------------- -------------------------------------- ------------ --------------- ---------- Applicable Revolver Index Margin 2.001.25% 1.50% 1.75% 1.50% ---------------------------------------------------------------------- Index Margin -------------------------------------- ------------ --------------- ---------- Applicable Revolver LIBOR Margin 3.252.75% 3.00% 3.25% -------------------------------------- ------------ --------------- ---------- Applicable Term Loan Index Margin 1.25% 1.50% 1.75% -------------------------------------- ------------ --------------- ---------- Applicable Term Loan LIBOR Margin 2.75% ---------------------------------------------------------------------- 3.00% 3.25% -------------------------------------- ------------ --------------- ---------- Applicable L/C Margin 3.252.75% 3.00% 2.753.25% ---------------------------------------------------------------------- All adjustments in the Applicable Margins after September 30, 2003 shall be implemented quarterly on a prospective basis, for each calendar month commencing at least 5 days after the date of delivery to Lenders of the quarterly unaudited or annual audited (as applicable) Financial Statements evidencing the need for an adjustment. -------------------------------------- ------------ --------------- ---------- Concurrently with the delivery of those such Financial Statements, Borrower Representative shall deliver to Agent, Revolving Credit Agent and Lenders a certificate, signed by its chief financial officer, setting forth in reasonable detail the basis for the continuance of, or any change in, the Applicable Margins. Failure to timely deliver such Financial Statements shall, in addition to any other remedy provided for in this Agreement, result in an increase in the Applicable Margins to the highest level set forth in the foregoing grid, until the first day of the first calendar month following the delivery of those Financial Statements demonstrating that such an increase is not required. If a Default or Event of Default has occurred and is continuing at the time any reduction in the Applicable Margins is to be implemented, that reduction shall be deferred until the first day of the first calendar month following the date on which such Default or Event of Default is waived or cured.
Appears in 1 contract
Interest and Applicable Margins. (a) Borrower shall pay interest to Administrative Agent, for the ratable benefit of Lenders in accordance with the various Loans being made by each Lender, in arrears on each applicable Interest Payment Date, at the following rates: (i) with respect to the Revolving Credit Advances, the Index Rate plus the Applicable Revolver Index Margin per annum or, at the election of Borrower, the applicable LIBOR Rate plus the Applicable Revolver LIBOR Margin per annum, based on the aggregate Revolving Credit Advances outstanding from time to time; annum and (ii) with respect to the Swing Line Loan, the Index Rate plus the Applicable Revolver Index Margin per annum. As of During the period from the Closing DateDate through the first anniversary thereof, the Applicable Margins are as follows: ------------------------------------------------------ Applicable Revolver Index Margin 1.75% ------------------------------------------------------ Applicable Revolver LIBOR Margin 3.00% ------------------------------------------------------ Applicable L/C Margin 3.00% ------------------------------------------------------ The shall be based on Level I (regardless of EBITDA during such period). Thereafter, the Applicable Margins shall may be adjusted (up or down) prospectively on a quarterly basis as determined by Borrower's consolidated financial performance, commencing with the first day of the first calendar month that occurs more than 5 days after delivery of Borrower's quarterly Financial Statements to Lenders for the Fiscal Quarter ending September 30, 2003. Adjustments in Applicable Margins shall be determined by reference to the following gridsgrid: ---------------------------------------------------------------------- If Total Leverage Level of Ratio isLEVEL OF IF LTM EBITDA IS: Applicable MarginsAPPLICABLE MARGINS: ---------------------------------------------------------------------- >=4.75 to 1.0 < $350,000,000 Level I ---------------------------------------------------------------------- >=4.00 to 1.0, > or = $350,000,000 but < $550,000,000 Level II <4.75 to 1.0 ---------------------------------------------------------------------- <4.00 to 1.0 > or = $550,000,000 Level III ---------------------------------------------------------------------- ---------------------------------------------------------------------- Applicable Margins ---------------------------------------------------------------------- Level ------------------------------------------------------------------------------------------- APPLICABLE MARGINS ------------------------------------------------------------------------------------------- LEVEL I Level LEVEL II Level LEVEL III ---------------------------------------------------------------------- ------------------------------------------------------------------------------------------- Applicable Revolver Index Margin 2.50% 2.25% 2.00% 1.75% 1.50% ---------------------------------------------------------------------- ------------------------------------------------------------------------------------------- Applicable Revolver LIBOR Margin 3.50% 3.25% 3.00% 2.75% ---------------------------------------------------------------------- ------------------------------------------------------------------------------------------- Applicable Revolving L/C Margin 3.50% 3.25% 3.00% 2.75------------------------------------------------------------------------------------------- Applicable Synthetic L/C Margin 3.50% ---------------------------------------------------------------------- All 3.25% 3.00% ------------------------------------------------------------------------------------------- Any such adjustments in the Applicable Margins after September 30, 2003 shall be implemented quarterly on a prospective basisbasis on the fifth (5th) day following the delivery of Financial Statements in accordance with paragraphs (b) or (d), for each calendar month commencing at least 5 days after the date of delivery to Lenders of the quarterly unaudited or annual audited (as applicable) Financial Statements , of Annex E evidencing the need for an adjustment. Concurrently with the delivery of those Financial Statements, Borrower shall deliver to Administrative Agent and Lenders a certificate, signed by its chief financial officera Financial Officer, setting forth in reasonable detail the basis for the continuance of, or any change in, the Applicable Margins. Failure to timely deliver such Financial Statements shall, in addition to any other remedy provided for in this Agreement, result in an increase in the Applicable Margins to the highest level set forth in the foregoing grid, until the first fifth (5th) day of the first calendar month following the delivery of those Financial Statements demonstrating that such an increase is not required. If a Default or an Event of Default has occurred and is continuing at the time any reduction in the Applicable Margins is to be implemented, that reduction shall be deferred until the first day of the first calendar month third (3rd) Business Day following the date on which such Default or Event of Default is waived or curedceases to continue, as the case may be.
Appears in 1 contract
Interest and Applicable Margins. (a) Borrower shall pay interest to Agent, for the ratable benefit of Lenders in accordance with the various Revolving Loans being made by each Lender, in arrears on each applicable Interest Payment Date, at the following rates: (i) with respect to the Revolving Credit Advances, the Index Rate plus the Applicable Revolver Index Margin per annum or, at the election of Borrower, the applicable LIBOR Rate plus the Applicable Revolver LIBOR Margin per annum, based on the aggregate Revolving Credit Advances outstanding from time to time; and (ii) with respect to the Swing Line Loan, the Index Rate plus the . The Applicable Revolver Index Margin per annum. As of the Closing Date, the Applicable Margins are as follows: ------------------------------------------------------ Applicable Revolver Index Margin 1.75% ------------------------------------------------------ Applicable Revolver LIBOR Margin 3.00shall initially be 3.25% ------------------------------------------------------ Applicable L/C Margin 3.00% ------------------------------------------------------ The Applicable Margins and shall be adjusted (up or down) prospectively on a quarterly basis as determined by Borrower's consolidated financial performance, commencing with the first day of the first calendar month that occurs more than 5 five days after delivery of Borrower's quarterly unaudited or annual audited Financial Statements to Lenders for the Fiscal Quarter ending September 30, 20032002. Adjustments in the Applicable Margins shall LIBOR Margin will be determined by reference to the following gridsgrid: ---------------------------------------------------------------------- If Total Leverage Level of -------------------------------------- ------------------------------ Debt to RMR Ratio is: Applicable Margins: ---------------------------------------------------------------------- >=4.75 to 1.0 Level I ---------------------------------------------------------------------- >=4.00 to 1.0Margins ----------------- ------------------ -------------------------------------- ------------------------------ > 17.0 3.75% -------------------------------------- ------------------------------ > 13.0, but Level II <4.75 to 1.0 ---------------------------------------------------------------------- <4.00 to 1.0 Level III ---------------------------------------------------------------------- ---------------------------------------------------------------------- Applicable Margins ---------------------------------------------------------------------- Level I Level II Level III ---------------------------------------------------------------------- Applicable Revolver Index Margin 2.00< 17.0 3.50% 1.75% 1.50% ---------------------------------------------------------------------- Applicable Revolver LIBOR Margin - - -------------------------------------- ------------------------------ < 13.0 3.25% 3.00% 2.75% ---------------------------------------------------------------------- Applicable L/C Margin 3.25% 3.00% 2.75% ---------------------------------------------------------------------- -------------------------------------- ------------------------------ All adjustments in the Applicable Margins LIBOR Margin after September 30, 2003 2002 shall be implemented quarterly on a prospective basis, for each calendar month commencing at least 5 five days after the date of delivery to Lenders of the quarterly unaudited or annual audited (as applicable) Financial Statements evidencing the need for an adjustment. Concurrently with the delivery of those Financial Statements, Borrower shall deliver to Agent and Lenders a certificate, signed by its chief financial officervice president - finance, setting forth in reasonable detail the basis for the continuance of, or any change in, the Applicable MarginsLIBOR Margin. Failure to timely deliver such Financial Statements shall, in addition to any other remedy provided for in this Agreement, result in an increase in the Applicable Margins LIBOR Margin to the highest level set forth in the foregoing grid, until the first day of the first calendar month following the delivery of those Financial Statements demonstrating that such an increase is not required. If a Default or an Event of Default has occurred and is continuing at the time any reduction in the Applicable Margins LIBOR Margin is to be implemented, that reduction shall be deferred until the first day of the first calendar month following the date on which such Default or Event of Default is waived or cured.
Appears in 1 contract
Interest and Applicable Margins. (a) Borrower Borrowers shall pay interest to Agent, for the ratable benefit of Lenders in accordance with the various Loans being made by each Lender, in arrears on each applicable Interest Payment Date, at the following rates: (i) with respect to the Revolving Credit Advances, the Index Rate plus the Applicable Revolver Index Margin per annum or, at the election of BorrowerBorrower Representative, the applicable LIBOR Rate plus the Applicable Revolver LIBOR Margin per annum, based on calculated with respect to the aggregate principal balance of Revolving Credit Advances outstanding from time to time; (ii) with respect to the Term A Loan, the Index Rate plus the Applicable Term A Index Margin per annum or, at the election of Borrower Representative, the applicable LIBOR Rate plus the Applicable Term A LIBOR Margin per annum; (iii) with respect to the Term B Loan, the Index Rate plus the Applicable Term B Index Margin per annum or, at the election of Borrower Representative, the applicable LIBOR Rate plus the Applicable Term B LIBOR Margin per annum; (iv) with respect to the Acquisition Loan, the Index Rate plus the Applicable Acquisition Loan Index Margin per annum or, at the election of Borrower Representative, the applicable LIBOR Rate plus the Applicable Acquisition Loan LIBOR Margin per annum and (iiv) with respect to the Swing Line Loan, the Index Rate plus the Applicable Revolver Index Margin per annum. As of the Closing Date, the Applicable Margins are will be as follows: ------------------------------------------------------ ------------------------------------------------------- Index ------------------------------------------------------- Applicable Revolver Index Margin 1.750.75% ------------------------------------------------------ ------------------------------------------------------- Applicable Revolver LIBOR Margin 3.002.25% ------------------------------------------------------ ------------------------------------------------------- Applicable Term A Index Margin 0.75% ------------------------------------------------------- Applicable Term A LIBOR Margin 2.25% ------------------------------------------------------- Applicable Term B Index Margin 1.25% ------------------------------------------------------- Applicable Term B LIBOR Margin 2.75% ------------------------------------------------------- Applicable Acquisition Loan Index Margin 0.75% ------------------------------------------------------- Applicable Acquisition Loan LIBOR Margin 2.25% ------------------------------------------------------- Applicable L/C Margin 3.002.00% ------------------------------------------------------ ------------------------------------------------------- Applicable Unused Line Fee Margin 0.375% ------------------------------------------------------- The Applicable Margins shall will be adjusted (up or down) prospectively on a quarterly basis as determined by BorrowerRII's consolidated financial performanceLeverage Ratio, commencing with the first day of the first calendar month that occurs more than 5 five (5) days after delivery of Borrower's Borrowers' quarterly Financial Statements to Lenders for the Fiscal Quarter ending September 30March 31, 20031998. Adjustments in Applicable Margins shall will be determined by reference to the following grids: ---------------------------------------------------------------------- If Total Leverage Level of Ratio is: Applicable Margins: ---------------------------------------------------------------------- >=4.75 to 1.0 Level I ---------------------------------------------------------------------- >=4.00 to 1.0, but Level II <4.75 to 1.0 ---------------------------------------------------------------------- <4.00 to 1.0 Level III ---------------------------------------------------------------------- ---------------------------------------------------------------------- Applicable Margins ---------------------------------------------------------------------- Level I Level II Level III ---------------------------------------------------------------------- Applicable Revolver Index Margin 2.00% 1.75% 1.50% ---------------------------------------------------------------------- Applicable Revolver LIBOR Margin 3.25% 3.00% 2.75% ---------------------------------------------------------------------- Applicable L/C Margin 3.25% 3.00% 2.75% ---------------------------------------------------------------------- All adjustments in the Applicable Margins after September 30, 2003 shall be implemented quarterly on a prospective basis, for each calendar month commencing at least 5 days after the date of delivery to Lenders of the quarterly unaudited or annual audited (as applicable) Financial Statements evidencing the need for an adjustment. Concurrently with the delivery of those Financial Statements, Borrower shall deliver to Agent and Lenders a certificate, signed by its chief financial officer, setting forth in reasonable detail the basis for the continuance of, or any change in, the Applicable Margins. Failure to timely deliver such Financial Statements shall, in addition to any other remedy provided for in this Agreement, result in an increase in the Applicable Margins to the highest level set forth in the foregoing grid, until the first day of the first calendar month following the delivery of those Financial Statements demonstrating that such an increase is not required. If a Default or Event of Default has occurred and is continuing at the time any reduction in the Applicable Margins is to be implemented, that reduction shall be deferred until the first day of the first calendar month following the date on which such Default or Event of Default is waived or cured.:
Appears in 1 contract
Interest and Applicable Margins. (a) Borrower (i) Prior to the Acquisition Closing Date, Borrowers shall pay interest to Agent, for the ratable benefit of Lenders in accordance with the various Loans being made by each Lender, in arrears on each applicable Interest Payment Date, at the following rates: (i) with respect to the Revolving Credit Advances, the Index Rate plus the Applicable Revolver Index Margin per annum or, at the election of BorrowerBorrower Representative, the applicable LIBOR Rate plus the Applicable Revolver LIBOR Margin per annum, based on the aggregate Revolving Credit Advances outstanding from time to time; and (ii) with respect to the Swing Line Loan, the Index Rate plus the Applicable Revolver Index Margin per annum. As of the Closing Date, the Applicable Margins are as follows: ------------------------------------------------------ set at Level II of the Applicable Revolver Index Margin 1.75% ------------------------------------------------------ Applicable Revolver LIBOR Margin 3.00% ------------------------------------------------------ Applicable L/C Margin 3.00% ------------------------------------------------------ The grid set forth below. Prior to the Acquisition Closing Date, the Applicable Margins shall be adjusted (up or down) prospectively on a quarterly basis as determined by Borrower's Borrowers' consolidated financial performance, commencing with the first day of the first calendar month that occurs more than 5 five (5) days after delivery of Borrower's Borrowers' quarterly Financial Statements to Lenders for the Fiscal Quarter ending September 30December 31, 20032002, and continuing thereafter as hereinafter provided. Adjustments in Applicable Margins shall be determined by reference to the following gridsgrids (which are in effect prior to the Acquisition Closing Date): -------------------------------------------------------------------------------------------- IF EXCESS FORMULA LEVEL OF AVAILABILITY: ---------------------------------------------------------------------- If Total Leverage Level OR APPLICABLE MARGINS: -------------------------------------------------------------------------------------------- >$75,000,000 As of Ratio is: Applicable Margins: ---------------------------------------------------------------------- >=4.75 to 1.0 any date of determination, Level I ---------------------------------------------------------------------- (a) Borrowers and their Subsidiaries on a consolidated basis, with respect to the 12-month period then ended, have EBITDA of not less than $63,000,000 and (b) Excess Formula Availability is greater than $50,000,000 -------------------------------------------------------------------------------------------- >=4.00 to 1.0$50,000,000, but <=$75,000,000 As of any date of determination, Level II (a) Borrowers and their Subsidiaries on a consolidated basis, with respect to the 12-month period then ended, have a minimum EBITDA of not less than $63,000,000 and (b) -------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------- IF EXCESS FORMULA LEVEL OF AVAILABILITY: OR APPLICABLE MARGINS: -------------------------------------------------------------------------------------------- Excess Formula Availability is greater than $25,000,000 -------------------------------------------------------------------------------------------- >$25,000,000, but <4.75 to 1.0 ---------------------------------------------------------------------- <4.00 to 1.0 =$50,000,000 N/A Level III ---------------------------------------------------------------------- ---------------------------------------------------------------------- Applicable Margins ---------------------------------------------------------------------- -------------------------------------------------------------------------------------------- >$10,000,000, but <=$25,000,000 N/A Level IV -------------------------------------------------------------------------------------------- < $10,000,000 N/A Level V -------------------------------------------------------------------------------------------- --------------------------------------------------------------------------------------- APPLICABLE MARGINS --------------------------------------------------------------------------------------- LEVEL I Level LEVEL II Level LEVEL III ---------------------------------------------------------------------- LEVEL IV LEVEL V --------------------------------------------------------------------------------------- Applicable Revolver Index Margin 2.000.0% 1.750.25% 1.500.50% ---------------------------------------------------------------------- 0.75% 1.00% --------------------------------------------------------------------------------------- Applicable Revolver LIBOR Margin 3.251.75% 3.002.00% 2.25% 2.50% 2.75% ---------------------------------------------------------------------- --------------------------------------------------------------------------------------- Applicable L/C Unused Line Fee Margin 3.250.25% 3.000.25% 2.750.375% ---------------------------------------------------------------------- All adjustments in the Applicable Margins after September 30, 2003 shall be implemented quarterly on a prospective basis, for each calendar month commencing at least 5 days after the date of delivery to Lenders of the quarterly unaudited or annual audited (as applicable) Financial Statements evidencing the need for an adjustment. Concurrently with the delivery of those Financial Statements, Borrower shall deliver to Agent and Lenders a certificate, signed by its chief financial officer, setting forth in reasonable detail the basis for the continuance of, or any change in, the Applicable Margins. Failure to timely deliver such Financial Statements shall, in addition to any other remedy provided for in this Agreement, result in an increase in the Applicable Margins to the highest level set forth in the foregoing grid, until the first day of the first calendar month following the delivery of those Financial Statements demonstrating that such an increase is not required. If a Default or Event of Default has occurred and is continuing at the time any reduction in the Applicable Margins is to be implemented, that reduction shall be deferred until the first day of the first calendar month following the date on which such Default or Event of Default is waived or cured.0.50% 0.50% ---------------------------------------------------------------------------------------
Appears in 1 contract
Interest and Applicable Margins. (a) Borrower shall pay interest to Agent, for the ratable benefit of Lenders in accordance with the various Loans being made by each Lender, in arrears on each applicable Interest Payment Date, at the following rates: (i) with respect to the Revolving Credit Advances, the Index Rate plus the Applicable Revolver Index Margin per annum or, at the election of Borrower, the applicable LIBOR Rate plus the Applicable Revolver LIBOR Margin per annum, based on the aggregate Revolving Credit Advances outstanding from time to time; and (ii) with respect to the Swing Line Loan, the Index Rate plus the Applicable Revolver Index Margin per annum. As The Applicable Revolver Index Margin, Applicable Revolver LIBOR Margin, Applicable L/C Margin, and the Applicable Unused Line Fee Margin are each equal to the rates per annum set forth below as of the Closing Effective Date: Applicable Revolver Index Margin 0.75% Applicable Revolver LIBOR Margin 2.25% Applicable L/C Margin 2.25% Applicable Unused Line Fee Margin 0.375% After the first anniversary of the Effective Date, the Applicable Margins are as follows: ------------------------------------------------------ Applicable Revolver Index Margin 1.75% ------------------------------------------------------ Applicable Revolver LIBOR Margin 3.00% ------------------------------------------------------ Applicable L/C Margin 3.00% ------------------------------------------------------ The Applicable Margins shall will be adjusted (up or down) prospectively on a quarterly basis as determined by Borrower's consolidated financial performanceEBITDA of Borrower and its Subsidiaries for the four Fiscal Quarters then most recently ended, commencing with the first day of the first calendar month that occurs more than 5 days after delivery of Borrower's quarterly Financial Statements to Lenders for the four Fiscal Quarter Quarters ending September 30December 31, 20031999. Adjustments in Applicable Margins shall will be determined by reference to the following gridsgrid: ---------------------------------------------------------------------- -------------------------------------------------------------- If Total Leverage EBITDA is: Level of Ratio is: Applicable Margins: ---------------------------------------------------------------------- >=4.75 to 1.0 -------------------------------------------------------------- **$85 million Level I ---------------------------------------------------------------------- >=4.00 to 1.0-------------------------------------------------------------- *$85 million, but **$70 million Level II <4.75 to 1.0 ---------------------------------------------------------------------- <4.00 to 1.0 -------------------------------------------------------------- *$70 million, but **$55 million Level III ---------------------------------------------------------------------- ---------------------------------------------------------------------- -------------------------------------------------------------- *$55 million, but **$40 million Level IV -------------------------------------------------------------- *$40 million, but **$25 million Level V -------------------------------------------------------------- *$25 million Level VI -------------------------------------------------------------- * less than ** greater than or equal to ------------------------------------------------------------------------------------- Applicable Margins ---------------------------------------------------------------------- ------------------------------------------------------------------------------------- Level I Level II Level III ---------------------------------------------------------------------- Level IV Level V Level VI -------- --------- ---------- --------- -------- --------- ------------------------------------------------------------------------------------- Applicable Revolver 0.00% 0.25% 0.50% 0.75% 1.00% 1.25% Index Margin 2.00------------------------------------------------------------------------------------- Applicable Revolver 1.50% 1.75% 1.502.00% ---------------------------------------------------------------------- Applicable Revolver LIBOR Margin 3.252.25% 3.002.50% 2.75% ---------------------------------------------------------------------- LIBOR Margin ------------------------------------------------------------------------------------- Applicable 1.50% 1.75% 2.00% 2.25% 2.50% 2.75% L/C Margin 3.25------------------------------------------------------------------------------------- Applicable Unused 0.250% 3.000.250% 2.750.375% ---------------------------------------------------------------------- 0.375% 0.500% 0.500% Line Fee Margin ------------------------------------------------------------------------------------- All adjustments in the Applicable Margins after September 30, 2003 shall the first anniversary of the Effective Date will be implemented quarterly on a prospective basis, for beginning with each calendar month commencing at least 5 five (5) days after the date of delivery to Agent and Lenders of the quarterly unaudited or annual audited (as applicable) Financial Statements of Borrower evidencing the need for an adjustment. Concurrently with the delivery of those Financial Statements, Borrower shall deliver to Agent and Lenders a certificate, signed by its chief financial officer, setting forth in reasonable detail the basis for the continuance of, or any change in, the Applicable Margins. Failure to timely deliver such Financial Statements within eight (8) Business Days of the date required therefor pursuant to Section 4 and Annex E shall, in addition to any --------- ------- other remedy provided for in this Agreement, result in an increase in the Applicable Margins to the highest level set forth in the foregoing grid, grid until the first day of the first calendar month following the delivery of those Financial Statements demonstrating that such an increase is not required. If a Default or Event of Default has shall have occurred and is or be continuing at the time any reduction in the Applicable Margins is to be implemented, that reduction shall be deferred until the first day of the first calendar month following the date on which such Default or Event of Default is waived or cured.
Appears in 1 contract
Interest and Applicable Margins. (a) Borrower shall pay interest to Agent, for the ratable benefit of Lenders in accordance with the various Loans Revolving Credit Advances or Term Loans, as applicable being made by each Lender, in arrears on each applicable Interest Payment Date, at the following rates: (i) with respect to the Revolving Credit Advances, the Index Rate plus the Applicable Revolver Index Margin per annum or, at the election of Borrower, the applicable LIBOR Rate plus the Applicable Revolver LIBOR Margin per annum, based on the aggregate Revolving Credit Advances outstanding from time to time; and (ii) with respect to the Swing Line Term Loan, the Index Rate plus the Applicable Revolver Term Loan Index Margin per annum or, at the election of Borrower, the applicable LIBOR Rate plus the Applicable Term Loan LIBOR Margin per annum. As of the Closing Date, the Applicable Margins are as follows: ------------------------------------------------------ Applicable Revolver Index Margin 1.753.00% ------------------------------------------------------ Applicable Revolver LIBOR Margin 3.004.50% ------------------------------------------------------ Applicable L/C Term Loan Index Margin 3.00% ------------------------------------------------------ Applicable Term Loan LIBOR Margin 4.50% The Applicable Margins shall be adjusted (up or down) prospectively on a quarterly basis as determined by Borrower's consolidated financial performance, commencing with the first day of the first calendar month that occurs more than 5 days after delivery of Borrower's quarterly Financial Statements to Lenders for the Fiscal Quarter ending September June 30, 2003. Adjustments in Applicable Margins shall be determined by reference to the following gridsADJUSTMENTS IN APPLICABLE MARGINS WILL BE DETERMINED BY REFERENCE TO THE FOLLOWING GRIDS: ---------------------------------------------------------------------- If Total Leverage Level of Ratio is------------------------------- --------------------------------- IF LEVERAGE RATIO IS: Applicable MarginsLEVEL OF APPLICABLE MARGINS: ---------------------------------------------------------------------- >=4.75 to 1.0 ------------------------------- --------------------------------- < 1.5x Level I ---------------------------------------------------------------------- >=4.00 to 1.0------------------------------- --------------------------------- > 1.5x, but < 2.0x Level II <4.75 to 1.0 ---------------------------------------------------------------------- <4.00 to 1.0 ------------------------------- --------------------------------- > 2.0x Level III ---------------------------------------------------------------------- ---------------------------------------------------------------------- Applicable Margins ---------------------------------------------------------------------- Level ------------------------------- --------------------------------- ------------------------------------------ ------------------------------------- APPLICABLE MARGINS ------------------------------------------ ------------------------------------- LEVEL I Level LEVEL II Level LEVEL III ---------------------------------------------------------------------- ------------------------------------------ ----------- ------------ ------------ Applicable Revolver Index Margin 2.002.50% 1.752.75% 1.503.00% ---------------------------------------------------------------------- ------------------------------------------ ----------- ------------ ------------ Applicable Revolver LIBOR Margin 3.254.00% 4.25% 4.50% ------------------------------------------ ----------- ------------ ------------ Applicable Term Loan Index Margin 2.50% 2.75% 3.00% 2.75------------------------------------------ ----------- ------------ ------------ Applicable Term Loan LIBOR Margin 4.00% ---------------------------------------------------------------------- Applicable L/C Margin 3.254.25% 3.004.50% 2.75% ---------------------------------------------------------------------- ------------------------------------------ ----------- ------------ ------------ ------------------------------------------ ----------- ------------ ------------ All adjustments in the Applicable Margins after September June 30, 2003 shall be implemented quarterly on a prospective basis, for each calendar month commencing at least 5 days after the date of delivery to Lenders of the quarterly unaudited or annual audited (as applicable) Financial Statements evidencing the need for an adjustment. Concurrently with the delivery of those Financial Statements, Borrower shall deliver to Agent and Lenders a certificate, signed by its chief financial officer, setting forth in reasonable detail the basis for the continuance of, or any change in, the Applicable Margins. Failure to timely deliver such Financial Statements shall, in addition to any other remedy provided for in this Agreement, result in an increase in the Applicable Margins to the highest level set forth in the foregoing grid, until the first day of the first calendar month following the delivery of those Financial Statements demonstrating that such an increase is not required. If a Default or an Event of Default has occurred and is continuing at the time any reduction in the Applicable Margins is to be implemented, that reduction shall be deferred until the first day of the first calendar month following the date on which such Default or Event of Default is waived or cured.
Appears in 1 contract
Samples: Credit Agreement (Tefron LTD)
Interest and Applicable Margins. (a) Borrower Borrowers shall pay interest to Administrative Agent, for the ratable benefit of Lenders in accordance with the various Loans Revolving Loan being made by each Lender, in arrears on each applicable Interest Payment Date, at the following rates: (i) with respect to the Revolving Credit Advances, the Index Base Rate plus the Applicable Revolver Index Base Rate Margin per annum or, at the election of BorrowerBorrower Representative, the applicable LIBOR Rate plus the Applicable Revolver LIBOR Margin per annum, based on the aggregate Revolving Credit Advances outstanding from time to time; and (ii) with respect to the Swing Line Loan, the Index Rate plus the Applicable Revolver Index Margin per annum. As of the Closing Date, the The Applicable Margins are through and including the First Adjustment Date shall be minus one percent (-1.0%) for Base Rate Loans and one hundred seventy-five (175) basis points for LIBOR Loans. The Applicable Margins if adjusted as followsdescribed below, shall be determined in accordance with the following table: ------------------------------------------------------ Applicable Revolver Index Margin 1.75--------------------------------------------------- -------------------------------- ------------------------------ APPLICABLE IF LEVERAGE RATIO IS: BASE RATE MARGIN APPLICABLE LIBOR MARGIN --------------------------------------------------- -------------------------------- ------------------------------ Less than 1.0 to 1.0 Minus 1% ------------------------------------------------------ Applicable Revolver LIBOR Margin 3.00Plus 175 basis points --------------------------------------------------- -------------------------------- ------------------------------ Greater than or equal to 1.0 to 1.0 but less than 1.25 to 1.0 Minus 0.5% ------------------------------------------------------ Applicable L/C Margin 3.00Plus 225 basis points --------------------------------------------------- -------------------------------- ------------------------------ Greater than or equal to 1.25 to 1.0 0% ------------------------------------------------------ Plus 275 basis points --------------------------------------------------- -------------------------------- ------------------------------ The Applicable Margins shall be adjusted (up or down) prospectively on a quarterly basis as determined by Borrower's Borrowers' consolidated financial performancecondition for the Fiscal Quarter then ended, commencing with the first day of the first calendar month that occurs more than 5 days after delivery of Borrower's Borrowers' quarterly unaudited Financial Statements to Lenders for the Fiscal Quarter ending September June 30, 20032006 (the "First Adjustment Date"). Adjustments in Applicable Margins shall be determined by reference to the following grids: ---------------------------------------------------------------------- If Total Leverage Level of Ratio is: Applicable Margins: ---------------------------------------------------------------------- >=4.75 to 1.0 Level I ---------------------------------------------------------------------- >=4.00 to 1.0, but Level II <4.75 to 1.0 ---------------------------------------------------------------------- <4.00 to 1.0 Level III ---------------------------------------------------------------------- ---------------------------------------------------------------------- Applicable Margins ---------------------------------------------------------------------- Level I Level II Level III ---------------------------------------------------------------------- Applicable Revolver Index Margin 2.00% 1.75% 1.50% ---------------------------------------------------------------------- Applicable Revolver LIBOR Margin 3.25% 3.00% 2.75% ---------------------------------------------------------------------- Applicable L/C Margin 3.25% 3.00% 2.75% ---------------------------------------------------------------------- All adjustments in the Applicable Margins after September 30, 2003 the First Adjustment Date shall be implemented quarterly on a prospective basis, for each calendar month commencing at least 5 days after the date of delivery to Lenders of the quarterly unaudited or annual audited (as applicable) Financial Statements evidencing the need for an adjustment. Concurrently with the delivery of those Financial Statements, Borrower Representative shall deliver to Administrative Agent and Lenders a certificate, signed by its chief financial officer, setting forth in reasonable detail the basis for the continuance of, or any change in, the Applicable Margins. Failure to timely deliver such Financial Statements shall, in addition to any other remedy provided for in this Agreement, result in an increase in the Applicable Margins to the highest level set forth in the foregoing grid, until the first fifth day of the first calendar month following the delivery of those Financial Statements demonstrating that such an increase is not required. If a Default Default, which is not reasonably capable of being cured, or Event of Default has occurred and is continuing at the time any reduction in the Applicable Margins is to be implemented, that reduction shall be deferred until the first day of the first calendar month following the date on which such Default Default, which is not reasonably capable of being cured, or Event of Default is waived or cured.
Appears in 1 contract
Samples: Loan Agreement (Asta Funding Inc)
Interest and Applicable Margins. (a) Borrower Borrowers shall pay interest to Agent, for the ratable benefit of Lenders in accordance with the various Loans being made by each Lender, in arrears on each applicable Interest Payment Date, at the following rates: (i) with respect to the Revolving Credit Advances, the Index Rate plus the Applicable Revolver Index Margin per annum or, at the election of BorrowerBorrower Representative, the applicable Applicable LIBOR Rate plus the Applicable Revolver LIBOR Margin per annum, based on the aggregate Revolving Credit Advances outstanding from time to time; and (ii) with respect to the Swing Line Loan, the Index Rate plus the Applicable Revolver Index Margin per annum. As of the Closing Date, the Applicable Margins are as follows: ------------------------------------------------------ Applicable Revolver Index Margin 1.751.250% ------------------------------------------------------ Applicable Revolver LIBOR Margin 3.002.750% ------------------------------------------------------ Applicable L/C Margin 3.002.750% ------------------------------------------------------ Applicable Unused Line Fee Margin 0.375% The Applicable Margins shall be adjusted (up or down) prospectively on a quarterly basis as determined by Borrower's Borrowers' consolidated financial performance, commencing with the first day of the first calendar month that occurs more than 5 days after delivery of Borrower's Borrowers' quarterly Financial Statements to Lenders for the Fiscal Quarter ending September 30, 20032002. Adjustments in Applicable Margins shall be determined by reference to the following grids: ---------------------------------------------------------------------- If Total Leverage Level of Ratio isIF BOTH BORROWING AVAILABILITY IF FIXED CHARGE AND AVERAGE BORROWING 60-DAY LEVEL OF COVERAGE RATIO IS: Applicable MarginsAVAILABILITY ARE: ---------------------------------------------------------------------- >=4.75 to 1.0 APPLICABLE MARGINS: ---------------------------------------- --------------------------------------------------------------- ------------------- greater than 1.40:1.00 greater than $30,000,000 Level I ---------------------------------------------------------------------- >=4.00 to 1.0---------------------------------------- --------------------------------------------------------------- ------------------- 1.40:1.00, but greater than 1.25:1.00 less than $30,000,000, but greater than or equal to $25,000,000 Level II <4.75 ---------------------------------------- --------------------------------------------------------------- ------------------- greater than 0.90:1.00 less than $25,000,000, but greater than or equal to 1.0 ---------------------------------------------------------------------- <4.00 to 1.0 $20,000,000 Level III ---------------------------------------------------------------------- ---------------------------------------------------------------------- ---------------------------------------- --------------------------------------------------------------- ------------------- Not applicable less than $20,000,000, but greater than or equal to $15,000,000 Level IV ---------------------------------------- --------------------------------------------------------------- ------------------- Not applicable less than $15,000,000 Level V ---------------------------------------- --------------------------------------------------------------- ------------------- APPLICABLE MARGINS -------------------------------------------------------------------- LEVEL I LEVEL II LEVEL III LEVEL IV LEVEL V ------- -------- --------- -------- ------- Applicable Margins ---------------------------------------------------------------------- Level I Level II Level III ---------------------------------------------------------------------- Applicable Revolver Index Margin 2.000.750% 1.751.000% 1.501.250% ---------------------------------------------------------------------- 1.500% 1.750% Applicable Revolver LIBOR Margin 3.252.250% 3.002.500% 2.752.750% ---------------------------------------------------------------------- 3.000% 3.250% Applicable L/C Margin 3.252.250% 3.002.500% 2.752.750% ---------------------------------------------------------------------- 3.000% 3.250% Applicable Unused Line Fee Margin 0.375% 0.375% 0.375% 0.375% 0.375% If there is a disparity between the financial tests described above, the test resulting in the greater level of Applicable Margins will prevail. All adjustments in the Applicable Margins after September 30, 2003 2002 shall be implemented quarterly on a prospective basis, for each calendar month commencing at least 5 days after the date of delivery to Lenders of the quarterly unaudited or annual audited (as applicable) Financial Statements evidencing the need for an adjustment. Concurrently with the delivery of those Financial Statements, Borrower Representative shall deliver to Agent and Lenders a certificate, signed by its chief financial officer, setting forth in reasonable detail the basis for the continuance of, or any change in, the Applicable Margins. Failure to timely deliver such Financial Statements shall, in addition to any other remedy provided for in this Agreement, result in an increase in the Applicable Margins to the highest level set forth in the foregoing grid, until the first day of the first calendar month following the delivery of those Financial Statements demonstrating that such an increase is not required. If a Default or Event of Default has occurred and is continuing at the time any reduction in the Applicable Margins is to be implemented, that reduction shall be deferred until the first day of the first calendar month following the date on which such Default or Event of Default is waived or cured.
Appears in 1 contract
Samples: Pledge Agreement (Brightpoint Inc)
Interest and Applicable Margins. (a) Borrower Borrowers shall pay interest to Agent, for the ratable benefit of Lenders in accordance with the various Loans being made by each Lender, in arrears on each applicable Interest Payment Date, at the following rates: (i) with respect to Term Loan Advances, the one- month LIBOR Rate plus eight and one-half percent (8.50%) per annum; provided, that if such LIBOR Rate shall, from time to time, not be available, the rate per annum equal to the LIBOR Rate last available until such time as such LIBOR Rate is again available, and (ii) with respect to the Revolving Credit AdvancesAdvances which are designated as Index Rate Loans (and for all other Obligations not otherwise set forth below), the Index Rate plus the Applicable Revolver Index Margin per annum or, with respect to Revolving Credit Advances which are designated as LIBOR Loans, at the election of BorrowerBorrower Representative, the applicable LIBOR Rate plus the Applicable Revolver LIBOR Margin per annum. With respect to any Revolving Loan hereunder, based on the aggregate Revolving Credit Advances outstanding from time to time; and Applicable Margin shall be (iiA) with respect to the Swing Line LoanLIBOR Loans, the Index Rate plus the Applicable Revolver Index Margin (1) from Agreement Date until April 1, 2006 a percentage, per annum. As of the Closing Date, the Applicable Margins are as follows: ------------------------------------------------------ Applicable Revolver Index Margin 1.75% ------------------------------------------------------ Applicable Revolver LIBOR Margin 3.00% ------------------------------------------------------ Applicable L/C Margin 3.00% ------------------------------------------------------ The Applicable Margins shall be adjusted equal to 4.00%, and (up or down2) prospectively on thereafter, a quarterly basis as determined by Borrower's consolidated financial performancepercentage, commencing with the first day of the first calendar month that occurs more than 5 days after delivery of Borrower's quarterly Financial Statements to Lenders for the Fiscal Quarter ending September 30per annum, 2003. Adjustments in Applicable Margins shall be determined by reference to the following gridsAverage Borrowing Availability in effect from time to time as set forth below; and (B) with respect to Index Rate Loans, (1) from the Agreement Date until April 1, 2006 a percentage, per annum, equal to 2.00%, and (2) thereafter, a percentage, per annum, determined by reference to the Average Borrowing Availability in effect from time to time as set forth below: ---------------------------------------------------------------------- If Total Leverage Average Borrowing Applicable Applicable Level of Ratio is: Applicable Margins: ---------------------------------------------------------------------- >=4.75 to 1.0 Level I ---------------------------------------------------------------------- >=4.00 to 1.0, but Level II <4.75 to 1.0 ---------------------------------------------------------------------- <4.00 to 1.0 Level III ---------------------------------------------------------------------- ---------------------------------------------------------------------- Applicable Margins ---------------------------------------------------------------------- Level I Level II Level III ---------------------------------------------------------------------- Applicable Availability Revolver LIBOR Revolver Index Margin 2.00Margin --------- --------------------------- ---------------------------- ---------------------------- I >=$10,000,000 3.00% 1.751.00% --------- --------------------------- ---------------------------- ---------------------------- II >=$7,500,000 3.50% 1.50% ---------------------------------------------------------------------- Applicable Revolver LIBOR Margin 3.25< $10,000,000 --------- --------------------------- ---------------------------- ---------------------------- III >=$5,000,000 4.00% 3.002.00% 2.75< $7,500,000 --------- --------------------------- ---------------------------- ---------------------------- IV < $5,000,000 4.50% ---------------------------------------------------------------------- Applicable L/C Margin 3.252.50% 3.00% 2.75% ---------------------------------------------------------------------- All adjustments in the Applicable Margins after September 30, 2003 Borrowing Availability shall be implemented quarterly determined on a prospective daily basis, for each calendar month commencing at least 5 days after and the date of delivery average thereof over the following respective Calculation Periods (“Average Borrowing Availability”) shall be used to Lenders of the quarterly unaudited or annual audited (as applicable) Financial Statements evidencing the need for an adjustment. Concurrently with the delivery of those Financial Statements, Borrower shall deliver to Agent and Lenders a certificate, signed by its chief financial officer, setting forth in reasonable detail the basis for the continuance of, or any change in, the Applicable Margins. Failure to timely deliver such Financial Statements shall, in addition to any other remedy provided for in this Agreement, result in an increase in determine the Applicable Margins to be effective for the highest level respective Fiscal Quarters of the Borrowers which begins with the day after the last day of the applicable calculation period: Calculation Periods: January 1, 2006 through March 31, 2006 April 1, 2006 through June 30, 2006 July 1, 2006 through September 30, 2006 If any payment on any Loan becomes due and payable on a day other than a Business Day, the maturity thereof will be extended to the next succeeding Business Day (except as set forth in the foregoing griddefinition of LIBOR Period) and, until the first day with respect to payments of the first calendar month following the delivery of those Financial Statements demonstrating that such an increase is not required. If a Default or Event of Default has occurred and is continuing principal, interest thereon shall be payable at the time any reduction in the Applicable Margins is to be implemented, that reduction shall be deferred until the first day of the first calendar month following the date on which then applicable rate during such Default or Event of Default is waived or curedextension.
Appears in 1 contract
Samples: Credit and Security Agreement (Osullivan Industries Inc)
