Common use of PIK Interest Clause in Contracts

PIK Interest. (A) At the Borrower’s election, interest may be payable entirely as PIK Interest. If the Borrower has delivered a PIK Interest Election Notice in accordance with the terms of this Section 2.06(a)(ii)(A), on the applicable Interest Payment Date, all accrued and unpaid interest shall be added to the principal amount of the Loans and shall, thereafter, be deemed an extension of additional Loans pursuant to the terms of, and subject to, the Loan Documents. PIK Interest shall be allocated ratably to the principal amounts of the Loans of each Lender in accordance with the Ratable Share of the Loans of such Lender. Unless the context otherwise requires, for all purposes hereof, references to “principal amount” of Loans refers to the original face amount of the Loans plus any increase in the principal amount of the outstanding Loans as a result of payments of PIK Interest. The entire unpaid balance of all PIK Interest shall be immediately due and payable in full in immediately available funds on the Maturity Date. Unless the Borrower delivers a PIK Interest Election Notice to the Administrative Agent at least three (3) Business Days prior to an Interest Payment Date, the Borrower will, subject to the immediately succeeding clause (B) below, be deemed to have elected for each Interest Period, to make interest payments in cash as set forth in Section 2.06(a)(i). (B) Notwithstanding anything to the contrary herein, the addition of PIK Interest to the aggregate principal amount of the Loans shall not result in a reduction of the aggregate principal amount of unused Commitments hereunder.

Appears in 4 contracts

Samples: Margin Loan Agreement (Liberty Broadband Corp), Margin Loan Agreement (Liberty Broadband Corp), Margin Loan Agreement and Collateral Account Control Agreement (Liberty Broadband Corp)

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PIK Interest. (A) At the Borrower’s election, interest may be payable entirely as PIK Interest. If the Borrower has delivered a PIK Interest ​ ​ Election Notice in accordance with the terms of this Section 2.06(a)(ii)(A), on the applicable Interest Payment Date, all accrued and unpaid interest shall be added to the principal amount of the Loans and shall, thereafter, be deemed an extension of additional Loans pursuant to the terms of, and subject to, the Loan Documents. PIK Interest shall be allocated ratably to the principal amounts of the Loans of each Lender in accordance with the Ratable Share of the Loans of such Lender. Unless the context otherwise requires, for all purposes hereof, references to “principal amount” of Loans refers to the original face amount of the Loans plus any increase in the principal amount of the outstanding Loans as a result of payments of PIK Interest. The entire unpaid balance of all PIK Interest shall be immediately due and payable in full in immediately available funds on the Maturity Date. Unless the Borrower delivers a PIK Interest Election Notice to the Administrative Agent at least three (3) Business Days prior to an Interest Payment Date, the Borrower will, subject to the immediately succeeding clause (B) below, be deemed to have elected for each Interest Period, to make interest payments in cash as set forth in Section 2.06(a)(i). (B) Notwithstanding anything to the contrary herein, the addition of PIK Interest to the aggregate principal amount of the Loans shall not result in a reduction of the aggregate principal amount of unused Commitments hereunder.

Appears in 1 contract

Samples: Margin Loan Agreement and Collateral Account Control Agreement (Liberty Broadband Corp)

PIK Interest. Notwithstanding anything to the contrary contained in this Section 2.08, and so long as no Event of Default has occurred and is continuing, the Borrower may elect, at its option, to pay in kind (A) At the Borrower’s election, interest may be payable entirely as PIK Interest”) all of the interest due on the principal amount of the Loans (a “PIK Election”). If the Borrower has delivered a PIK Interest Election Notice in accordance with shall be capitalized on a compounding basis by adding to the terms outstanding principal amount of this Section 2.06(a)(ii)(A), the Loans such PIK Interest on the applicable Interest Payment Date, all accrued and unpaid interest . The Borrower shall be added make a PIK Election with respect to the principal amount of the Loans and shall, thereafter, be deemed an extension of additional Loans pursuant to the terms of, and subject to, the Loan Documents. PIK any Interest shall be allocated ratably to the principal amounts of the Loans of each Lender in accordance with the Ratable Share of the Loans Payment Date by providing irrevocable notice of such Lender. Unless election (the context otherwise requires, for all purposes hereof, references to principal amount” of Loans refers to the original face amount of the Loans plus any increase in the principal amount of the outstanding Loans as a result of payments of PIK Interest. The entire unpaid balance of all PIK Interest shall be immediately due and payable in full in immediately available funds on the Maturity Date. Unless the Borrower delivers a PIK Interest Election Notice to the Administrative Agent at least Notice”) no later than 12:00 pm not less than three (3) Business Days prior to an such Interest Payment Date. Each PIK Election Notice shall include the information to the following effect: (i) that the Borrower is making a PIK Election, (ii) the relevant Interest Payment Date, (iii) the Borrower willportion of the then-applicable interest rate to be paid as PIK Interest, subject to and (iv) the immediately succeeding clause (B) below, be deemed to have elected for each Interest Period, to make interest payments increase in cash as set forth in Section 2.06(a)(i). (B) Notwithstanding anything to the contrary herein, the addition of PIK Interest to the aggregate principal amount of the Loans shall not to be effective upon the relevant Interest Payment Date as a result in a reduction of the aggregate PIK Election (each, a “PIK Amount”) and the principal amount of unused Commitments hereunderthe Loans outstanding as of such Interest Payment Date after giving effect to the payment of PIK Interest as a result of the PIK Election. If the Borrower does not deliver (or is not deemed to have delivered) a PIK Election Notice in accordance with the immediately preceding sentence, the interest on the Loans will be payable on the related Interest Payment Date entirely in cash. All PIK Interest shall automatically become immediately due and payable in full on the earliest to occur of (i) an Event of Default and (ii) the Maturity Date.

Appears in 1 contract

Samples: Credit Agreement (PureCycle Technologies, Inc.)

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PIK Interest. Except as otherwise agreed to in writing by the Requisite Lenders, additional pay-in-kind interest of 1.00% per annum (A"PIK Interest") At shall accrue on the Borrower’s electionaverage daily aggregate amount of each Lender's outstanding Loans and its Revolving Loan Pro Rata Share of the outstanding Letters of Credit, interest may for the period from the June 2002 Amendment Effective Date, to the date on which Company receives an aggregate amount of Net Cash Proceeds equal to at least $200,000,000 from one or more Asset Sales (the "Minimum Asset Sales Date"); provided that PIK Interest shall not be deemed earned or be payable entirely as PIK Interest. If in the Borrower has delivered a PIK Interest Election Notice event that the Minimum Asset Sales Date or the date of payment or prepayment in accordance with the terms of this Section 2.06(a)(ii)(A), on the applicable Interest Payment Date, all accrued and unpaid interest shall be added to the principal amount full of the Loans and shallother Obligations occurs on or prior to September 30, thereafter, be deemed an extension of additional Loans pursuant to the terms of, and subject to, the Loan Documents2003. PIK Interest shall be allocated ratably notionally become payable on the last day of each March, June, September and December and shall itself accrue interest thereafter, compounded quarterly, at a rate per annum equal to the principal amounts Adjusted Eurodollar Rate plus the Applicable Margin in effect at such time for the Tranche B Term Loans plus 1.00% for successive notional interest periods of three months. The then-accrued PIK Interest owing to each Lender shall become payable to such Lender or its Eligible Assignee upon the earliest to occur of (i) the Minimum Asset Sales Date, (ii) the date of payment or prepayment in full of the Loans of each Lender in accordance with and other Obligations and (iii) June 30, 2005. Notwithstanding the Ratable Share of the Loans of such Lender. Unless the context otherwise requiresforegoing, for all purposes hereof, references to “principal amount” of Loans refers to the original face amount of the Loans plus any increase in the principal amount of the outstanding Loans as a result of payments of PIK Interest. The entire unpaid balance of all accrued PIK Interest shall automatically be deemed to be earned and become payable immediately due and payable upon the occurrence of an Event of Default described in full in immediately available funds on the Maturity Datesubsection 8.6 or 8.7 of this Agreement with respect to Company. Unless the Borrower delivers a Such PIK Interest Election Notice may be prepaid by Company on any Business Day upon notice to the Administrative Agent at least three (3) Business Days prior to an Interest Payment Date, the Borrower will, subject to the immediately succeeding clause (B) below, be deemed to have elected for each Interest Period, to make interest payments in cash as set forth in Section 2.06(a)(i)Agent. (Be) Notwithstanding anything Amendment to the contrary herein, the addition of PIK Interest to the aggregate principal amount Subsection 2.2B(viii). Subsection 2.2B(viii) of the Loans shall not result Credit Agreement is hereby amended by deleting "ten (10)" therefrom and substituting "eleven (11)" in a reduction of the aggregate principal amount of unused Commitments hereunderlieu thereof.

Appears in 1 contract

Samples: Credit Agreement (Aurora Foods Inc /De/)

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