Optional Increase of the Commitments Clause Samples
The "Optional Increase of the Commitments" clause allows the borrower to request an increase in the total amount of credit available under a loan agreement, subject to lender approval. Typically, this process involves the borrower notifying the lenders of their desire to increase commitments, after which existing or new lenders may agree to provide additional funds up to a specified cap. This clause provides flexibility for the borrower to access more financing as needed without renegotiating the entire agreement, thereby streamlining the process of obtaining additional capital and supporting the borrower's evolving financial needs.
Optional Increase of the Commitments. At any time following the Closing Date, the Borrower shall have the right, in consultation with the Administrative Agent, from time to time and upon not less than thirty (30) days prior written notice to the Administrative Agent to request an increase in the Commitments; provided, that:
(a) no Default or Event of Default shall have occurred and be continuing or would result from any such requested increase or Extension of Credit made on the date of such increase;
(b) the Borrower shall provide the Administrative Agent with a certificate of a Responsible Officer dated as of the date of such increase in form and substance substantially similar to the certificate delivered under Section 8.1(b)(i) demonstrating pro forma compliance with the covenant contained in Section 8.3 after giving effect to any Extensions of Credit made on the date of such increase;
(c) each increase in Commitments shall be in an aggregate principal amount of at least $10,000,000 or a whole multiple of $5,000,000 in excess thereof, or in each case if less, the remaining principal amount of increases to Commitments that are available under this Section 2.5 (after giving effect to all prior increases pursuant to this Section 2.5);
(d) the aggregate amount of all increases to the Commitments made pursuant to this Section 2.5 shall not exceed FIFTY MILLION DOLLARS ($50,000,000);
(e) increases in Commitments pursuant to this Section 2.5 (i) shall not increase or otherwise affect the Swingline Sublimit and (ii) shall increase the Letter of Credit Sublimit, if applicable, in accordance with the terms of such definition;
(f) the Commitment of any Lender shall not be increased without the approval of such Lender;
(g) in connection with each proposed increase, the Borrower may solicit commitments from (i) any Lender (provided, that no Lender shall have an obligation to commit to all or a portion of the proposed increase) or (ii) any third party financial institutions that are Eligible Assignees that are reasonably acceptable to the Administrative Agent, the Issuing Banks, the Swingline Lender and the Borrower (a “New Lender”);
(h) the Loans made or Letters of Credit issued in respect of any increase in Commitments pursuant to this Section 2.5: (i) will rank pari passu in right of payment and security with the other Loans made and Letters of Credit issued hereunder and shall constitute and be part of the “Obligations” arising under this Agreement, and (ii) shall have the same pricing and tenor as t...
Optional Increase of the Commitments. (a) The Borrower may from time to time increase the Total Revolving Credit Commitment by the addition of one or more new Lenders consented to by the Administrative Agent and the LC Issuer or by the agreement of any existing Lender (a "PROPOSED COMBINED COMMITMENTS INCREASE") in the manner set forth below; provided that (i) the then Total Revolving Credit Commitment plus the Proposed Combined Commitments Increase shall not be greater than the $300,000,000; (ii) immediately prior to and after giving effect to the Proposed Combined Commitments Increase no event has occurred and is continuing that constitutes an Event of Default or Potential Default; (iii) the Borrower shall pay any costs payable under Section 2.14(b) if and to the extent any Loans are prepaid on the effective date of such increase (the "INCREASE DATE"); (iv) to the extent the Other Credit Agreement is in effect, the Borrower must request the increase of the Total Revolving Credit Commitment under the Other Credit Agreement and such new or existing Lender consenting to the increase under this Agreement must also consent to the increase under the Other Credit Agreement at the same percentage; and