Permitted Debt Transactions Proceeds Clause Samples
The 'Permitted Debt Transactions Proceeds' clause defines how proceeds from certain approved debt transactions may be used or managed under an agreement. Typically, this clause specifies which types of debt transactions are considered permissible and outlines the acceptable uses for any funds generated, such as refinancing existing obligations, funding capital expenditures, or making acquisitions. Its core function is to ensure that any new debt raised by a party is used in a manner consistent with the agreement’s risk and financial management objectives, thereby preventing misuse of borrowed funds and maintaining financial discipline.
Permitted Debt Transactions Proceeds. So long as no Event of Default has occurred and is continuing, all Net Cash Proceeds from any Permitted Debt Transaction (as defined below), shall, not later than five (5) Business Days following the applicable Loan Party’s receipt of such Net Cash Proceeds, be applied to pay the respective Obligations (as such term is defined in each of the Facility and the Other Facilities) of the applicable Loan Parties (as such term is defined in each of the Facility and the Other Facilities) under the Facility and the Other Facilities on a pro rata basis (in accordance with their respective outstanding Advances (as such term is defined in each of the Facility and the Other Facilities)). Nothing in this subsection (e) shall limit the negative covenants set forth in subsection (f) below.
Permitted Debt Transactions Proceeds. So long as no Event of Default has occurred and is continuing, all Net Cash Proceeds from any Permitted Debt Transaction (as defined below), but excluding amounts thereof invested in Category 3 Permitted Investments or deposited into the Pledged Proceeds Account, in either case in accordance with Section 2(f)(vi)(5) of this Amendment, shall, not later than five (5) Business Days following the applicable Loan Party’s receipt of such Net Cash Proceeds, be applied to Senior Debt Prepayments. Nothing in this subsection (e) shall limit the negative covenants set forth in subsection (f) below.