Interest Rate Increase Clause Samples
An Interest Rate Increase clause establishes the conditions under which the interest rate on a loan or financial obligation may be raised. Typically, this clause outlines specific triggers for an increase, such as changes in market rates, borrower default, or adjustments after an introductory period. By clearly defining when and how interest rates can be adjusted, the clause protects the lender from financial risk due to changing economic conditions and ensures transparency for the borrower regarding potential cost increases.
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Interest Rate Increase. The definitions of Revolving Credit Base Rate Margin, Revolving Credit Eurodollar Margin, Term Loan Base Rate Margin, and Term Loan Eurodollar Margin, as set forth in Section 1.1 of the Loan Agreement, are hereby amended to read in full as follows:
Interest Rate Increase. If the Company does not pay the Principal Amount and any and all accrued but unpaid interest by the Maturity Date, then the Interest Rate shall increase from 12% to 15% from the Maturity Date onwards.
Interest Rate Increase. If an Event of Default occurs and is continuing 30 days after such Event of Default, the Interest Rate shall automatically increase from 20% per annum to 24.0% per annum on any remaining outstanding principal under this Note. Upon any cure of an Event of Default, the Interest Rate shall revert to the Interest Rate on the first Business Day of the calendar month following the date of such cure.
Interest Rate Increase. Commencing on July 1, 1999, the interest rate shall be increased to 11%, and the interest rate shall be increased by 1% on each October 1, January 1, April 1 and July 1 thereafter, up to a maximum interest rate of 16%.
Interest Rate Increase. The definition of “Interest Rate” set forth in Section 1.1 of the Loan Agreement is hereby amended and restated in its entirety to read as follows:
Interest Rate Increase. If, during a Transition Period, the Consolidated Debt to Consolidated EBITDA ratio exceeds 3.50 to 1.00, as evidenced by an Officer’s Certificate delivered pursuant to Section 7.2(a), the interest rate otherwise applicable to the Notes shall be increased by 0.25% per annum, commencing on the first day of the first fiscal quarter following the fiscal quarter in respect of which such Officer’s Certificate was delivered and continuing until the Company has provided an Officer’s Certificate pursuant to Section 7.2(a) demonstrating that, as of the end of the fiscal quarter in respect of which such Certificate is delivered, the Consolidated Debt to Consolidated EBITDA ratio is not more than 3.50 to 1.00. Following delivery of an Officer’s Certificate demonstrating that the Consolidated Debt to Consolidated EBITDA ratio did not exceed 3.50 to 1.00, the additional 0.25% per annum interest shall cease to accrue or be payable for any fiscal quarter subsequent to the fiscal quarter in respect of which such Officer’s Certificate is delivered (subject to the occurrence of another Transition Period to which the first sentence of this Section 1.2(b) would apply).
Interest Rate Increase. In the event that (i) the Exchange Offer Registration Statement is not filed with the Commission on or prior to 90 days following the Closing Date, (ii) the Exchange Offer Registration Statement is not declared effective on or prior to 150 days following the Closing Date or (iii) the Exchange Offer is not Consummated on or prior to 180 days following the Closing Date or the Shelf Registration Statement is not declared effective on or prior to 180 days following the Closing Date, the interest rate borne by the Notes shall be increased by one-quarter of one percent per annum (a) following such 90-day period in the case of (i) above, (b) following such 150-day period in the case of clause (ii) above, (c) following such 180-day period, as applicable, in the case of clause (iii) above and (d) following each such subsequent 90-day period in the case of clauses (i), (ii) and (iii) above; provided that the aggregate increase in such interest rate shall in no event exceed one percent per annum. Upon
Interest Rate Increase. Effective as of the Closing Date, the respective Applicable Margin for Prime Loans and LIBOR Loans shall increase by 0.50% for each “Level” under the definition of “Applicable Margin”.
Interest Rate Increase. From and after the Amendment Effective Date, all LIBOR Loans under the Credit Agreement shall bear interest at the Applicable LIBOR Rate in effect after giving effect to the amendments to the Credit Agreement described below (which interest rate shall remain in effect notwithstanding any occurrence of a Forbearance Termination Date).
Interest Rate Increase. The interest rate on the Loan shall be increased to 8% per annum, retroactively from the Closing Date.