Right to Cure. Notwithstanding anything to the contrary contained in Section 7.01, in the event that the Borrower and its Restricted Subsidiaries fail to comply with the requirements of the Financial Performance Covenant as of the last day of any fiscal quarter of the Borrower, at any time after the beginning of such fiscal quarter until the expiration of the 10th Business Day following the date on which the financial statements with respect to such fiscal quarter (or the fiscal year ended on the last day of such fiscal quarter) are required to be delivered pursuant to Section 5.01(a) or Section 5.01(b), the Borrower or any Parent Entity thereof shall have the right to issue common Equity Interests or other Equity Interests (provided such other Equity Interests are reasonably satisfactory to the Administrative Agent) for cash or otherwise receive cash contributions to the capital of the Borrower as cash common Equity Interests or other Equity Interests (provided such other Equity Interests are reasonably satisfactory to the Administrative Agent) (collectively, the “Cure Right”), and upon the receipt by the Borrower of the Net Proceeds of such issuance that are not otherwise applied (the “Cure Amount”) pursuant to the exercise by the Borrower of such Cure Right such Financial Performance Covenant shall be recalculated giving effect to the following pro forma adjustment: (a) Consolidated EBITDA shall be increased with respect to such applicable fiscal quarter and any four fiscal quarter period that contains such fiscal quarter, solely for the purpose of measuring the Financial Performance Covenant and not for any other purpose under this Agreement, by an amount equal to the Cure Amount; (b) if, after giving effect to the foregoing pro forma adjustment (without giving effect to any portion of the Cure Amount on the balance sheet of the Borrower and its Restricted Subsidiaries with respect to such fiscal quarter only but with giving pro forma effect to any portion of the Cure Amount applied to any repayment of any Indebtedness), the Borrower and its Restricted Subsidiaries shall then be in compliance with the requirements of the Financial Performance Covenants, the Borrower and its Restricted Subsidiaries shall be deemed to have satisfied the requirements of the Financial Performance Covenant as of the relevant date of determination with the same effect as though there had been no failure to comply therewith at such date, and the applicable breach or default of the Financial Performance Covenant that had occurred shall be deemed cured for the purposes of this Agreement; and (c) Notwithstanding anything herein to the contrary, (i) in each four consecutive fiscal quarter period of the Borrower there shall be at least two fiscal quarters in which the Cure Right is not exercised, (ii) during the term of this Agreement, the Cure Right shall not be exercised more than five times, (iii) the Cure Amount shall be no greater than the amount required for purposes of complying with the Financial Performance Covenant and any amounts in excess thereof shall not be deemed to be a Cure Amount and (iv) the Lenders shall not be required to make a Loan or issue, amend, renew or extend any Letter of Credit unless and until the Borrower has received the Cure Amount required to cause the Borrower and the Restricted Subsidiaries to be in compliance with the Financial Performance Covenants. Notwithstanding any other provision in this Agreement to the contrary, the Cure Amount received pursuant to any exercise of the Cure Right shall be disregarded for purposes of determining the Available Amount, the Available Equity Amount, any financial ratio-based conditions or tests, pricing or any available basket under Article VI of this Agreement.
Appears in 8 contracts
Samples: First Lien Credit Agreement (First Advantage Corp), First Lien Credit Agreement (First Advantage Corp), First Lien Credit Agreement (First Advantage Corp)
Right to Cure. (a) Notwithstanding anything to the contrary contained in Section 7.01, in the event that the Borrower and its the Restricted Subsidiaries fail to comply with the requirements of the either Financial Performance Covenant as of the last day of any fiscal quarter of the Borrower, then at any time after the beginning of such fiscal quarter until the expiration of the 10th Business Day following day subsequent to the earlier of (i) the date on which a Compliance Certificate with respect to such fiscal quarter (or the fiscal year ended on the last day of such fiscal quarter) is delivered in accordance with Section 5.01(d) and (ii) the date on which the financial statements with respect to such fiscal quarter (or the fiscal year ended on the last day of such fiscal quarter) are required to be delivered pursuant to Section 5.01(a) or Section 5.01(b(b), the Borrower or any Parent Entity thereof as applicable, Holdings shall have the right to issue common Qualified Equity Interests or other Equity Interests (provided such other Equity Interests are reasonably satisfactory to the Administrative Agent) for cash or otherwise receive cash contributions to the capital of Holdings as cash common equity or other Qualified Equity Interests (which Holdings shall contribute through its Subsidiaries of which the Borrower is a Subsidiary to the Borrower as cash common Equity Interests or other Equity Interests (provided such other Equity Interests are reasonably satisfactory to the Administrative Agentequity) (collectively, the “Cure Right”), and upon the receipt by the Borrower of the Net Proceeds of such issuance that are not otherwise applied Not Otherwise Applied (the “Cure Amount”) pursuant to the exercise by the Borrower Holdings of such Cure Right such Financial Performance Covenant shall be recalculated giving effect to the following pro forma adjustment:
(ai) Consolidated EBITDA shall be increased with respect to such applicable fiscal quarter and any four fiscal quarter period that contains such fiscal quarter, solely for the purpose of measuring the Financial Performance Covenant Covenants and not for any other purpose under this Agreement, by an amount equal to the Cure Amount;; and
(bii) if, after giving effect to the foregoing pro forma adjustment (without giving effect to any repayment of any Indebtedness with any portion of the Cure Amount or any portion of the Cure Amount on the balance sheet of the Borrower and its Restricted Subsidiaries Subsidiaries, in each case, with respect to such fiscal quarter only but with giving pro forma effect to any portion of the Cure Amount applied to any repayment of any Indebtednessonly), the Borrower and its Restricted Subsidiaries shall then be in compliance with the requirements of the Financial Performance Covenants, the Borrower and its Restricted Subsidiaries shall be deemed to have satisfied the requirements of the Financial Performance Covenant Covenants as of the relevant date of determination with the same effect as though there had been no failure to comply therewith at such date, and the applicable breach or default of the Financial Performance Covenant Covenants that had occurred shall be deemed cured for the purposes of this Agreement; andprovided that the Borrower shall have notified the Administrative Agent of the exercise of such Cure Right within five (5) Business Days of the issuance of the relevant Qualified Equity Interests for cash or the receipt of the cash contributions by Holdings.
(cb) Notwithstanding anything herein to the contrary, (i) in each four consecutive fiscal quarter period of the Borrower there shall be at least two fiscal quarters in which the Cure Right is not exercised, (ii) during the term life of this Agreement, the Cure Right shall not be exercised more than five times, four times and (iii) for purposes of this Section 7.02, the Cure Amount shall be no greater than the amount required for purposes of complying with the Financial Performance Covenant Covenants and any amounts in excess thereof shall not be deemed to be a Cure Amount and (iv) the Lenders shall not be required to make a Loan or issue, amend, renew or extend any Letter of Credit unless and until the Borrower has received the Cure Amount required to cause the Borrower and the Restricted Subsidiaries to be in compliance with the Financial Performance CovenantsAmount. Notwithstanding any other provision in this Agreement to the contrary, the Cure Amount received pursuant to any exercise of the Cure Right shall be disregarded for purposes of determining the Available Amount, the Available Equity Amount, any financial ratio-ratio based conditions or tests, pricing or any available basket under Article VI 6 of this Agreement.
Appears in 6 contracts
Samples: Credit Agreement (Virtu Financial, Inc.), Restatement Agreement (Virtu Financial, Inc.), Restatement Agreement (Virtu Financial, Inc.)
Right to Cure. (a) Notwithstanding anything to the contrary contained in Section 7.018.1, in the event that the Borrower and its Restricted Subsidiaries fail fails to comply with the requirements of the any Financial Performance Covenant as of the last day of any fiscal quarter of the BorrowerCondition Covenant, at any time after the beginning of such fiscal quarter until the expiration of the 10th Business Day following 15th day subsequent to the date on which the financial statements with respect to certificate calculating such fiscal quarter (or the fiscal year ended on the last day of such fiscal quarter) are Financial Condition Covenant is required to be delivered pursuant to Section 5.01(a6.2(b) or Section 5.01(b(the “Cure Date”), the Borrower or any Parent Entity thereof Holdings shall have the right to issue common Equity Interests or other Equity Interests (provided such other Equity Interests are reasonably satisfactory to the Administrative Agent) Permitted Cure Securities for cash or otherwise receive cash contributions to the capital of Holdings, and, in each case, to contribute any such cash to the capital of the Borrower as cash common Equity Interests or other Equity Interests (provided such other Equity Interests are reasonably satisfactory to the Administrative Agent) (collectively, the “Cure Right”), and upon the receipt by the Borrower of the Net Proceeds of such issuance that are not otherwise applied cash (the “Cure Amount”) pursuant to the exercise by the Borrower Holdings of such Cure Right and request to the Administrative Agent to effect such recalculation, such Financial Performance Condition Covenant shall be recalculated giving effect to the following pro forma adjustmentadjustments:
(ai) Consolidated EBITDA EBITDAR shall be increased with respect to such applicable fiscal quarter and any four fiscal quarter period that contains such fiscal quarterincreased, solely for the purpose of measuring the Financial Performance Covenant Condition Covenants and not for any other purpose under this Agreement, by an amount equal to the Cure Amount;; and
(bii) if, after giving effect to the foregoing pro forma adjustment (without giving effect to any portion of the Cure Amount on the balance sheet of the Borrower and its Restricted Subsidiaries with respect to such fiscal quarter only but with giving pro forma effect to any portion of the Cure Amount applied to any repayment of any Indebtedness)recalculations, the Borrower and its Restricted Subsidiaries shall then be in compliance with the requirements of the all Financial Performance Condition Covenants, the Borrower and its Restricted Subsidiaries shall be deemed to have satisfied the requirements of the Financial Performance Covenant Condition Covenants as of the relevant date of determination with the same effect as though there had been no failure to comply therewith at such date, and the applicable breach or default of the Financial Performance Covenant Condition Covenants that had occurred shall be deemed cured for the purposes of this Agreement; and. For the avoidance of doubt, from the date that a Permitted Investor delivers a notice to the Administrative Agent specifying its intent to exercise its Cure Right, until the expiration of the earlier of (i) the Cure Date and (ii) the date on which the Borrower shall be deemed to have satisfied the requirements of the Financial Condition Covenants as set out above, neither the Administrative Agent nor any Lender shall exercise any right to accelerate the Loans, terminate the Commitments or foreclose on or take possession of the Collateral solely on the basis of an Event of Default having occurred and being continuing under Section 7.1 unless the Administrative Agent is notified in writing that the payment of such Cure Amount will not be made or, by the Cure Date, Cure Amounts have been made but in an amount less than the amount necessary to cause the Loan Parties to be in compliance with the covenants set forth in Section 7.1.
(cb) Notwithstanding anything herein to the contrary, (ia) in each four consecutive fiscal four-fiscal-quarter period of the Borrower there shall be at least two fiscal quarters in which the Cure Right is not exercised, (iib) in each eight-fiscal-quarter period, there shall be a period of at least four consecutive fiscal quarters during the term of this Agreement, which the Cure Right shall is not be exercised more than five timesexercised, (iiic) the Cure Amount shall be no greater than the amount required for purposes of complying with the Financial Performance Covenant and any amounts in excess thereof Condition Covenants, (d) no Indebtedness repaid with the proceeds of Permitted Cure Securities shall not be deemed to be a repaid for the purposes of calculating the ratios specified in Section 7.1(a) or (b) for the period during which such Permitted Cure Amount and Securities were issued, (ive) the Lenders shall not be required to make a Loan or issue, amend, renew or extend any Letter of Credit unless and until the Borrower has received the Cure Amount required to cause the Borrower and the Restricted Subsidiaries to be in compliance with the Financial Performance Covenants. Notwithstanding any other provision in this Agreement to the contrary, the Cure Amount received pursuant to any exercise of the Cure Right shall be disregarded for purposes of determining the Available Amount, the Available Equity Amount, any financial ratio-based conditions or tests, pricing or any available basket under Article VI Section 7 and (f) the Cure Right may be exercised no more than five times during the term of this Agreement.
Appears in 6 contracts
Samples: Credit Agreement (Dave & Busters Inc), Credit Agreement (Dave & Buster's Entertainment, Inc.), Credit Agreement (Dave & Buster's Entertainment, Inc.)
Right to Cure. (a) Notwithstanding anything to the contrary contained in Section 7.01, but subject to Sections 7.03(b) and (c), for the purpose of determining whether an Event of Default under the Financial Covenants has occurred, Holdings may on one or more occasions designate any portion of the Net Proceeds from any sale of Qualified Equity Interests of Holdings or of any cash contribution to the capital of Holdings (which shall be in the event that the Borrower and its Restricted Subsidiaries fail to comply with the requirements form of the Financial Performance Covenant as of the last day of any fiscal quarter of the Borrowercommon equity, at any time after the beginning of such fiscal quarter until the expiration of the 10th Business Day following the date on which the financial statements with respect to such fiscal quarter (or the fiscal year ended on the last day of such fiscal quarter) are required to be delivered pursuant to Section 5.01(a) or Section 5.01(b), the Borrower or any Parent Entity thereof shall have the right to issue common Qualified Equity Interests or other Equity Interests (provided such other Equity Interests are subordinated debt on terms reasonably satisfactory to the Revolving Administrative Agent) for cash (or otherwise receive cash contributions from any other contribution to the capital or sale or issuance of the Borrower as cash common Equity Interests or any other Equity Interests (provided such other Equity Interests are on terms reasonably satisfactory to the Revolving Administrative Agent) (collectively, the “Cure Right”), and upon the receipt by the Borrower of the Net Proceeds of such issuance that are not otherwise applied (the “Cure Amount”) pursuant as an increase to Consolidated EBITDA of Holdings and its Restricted Subsidiaries for the exercise by the Borrower of such Cure Right such Financial Performance Covenant shall be recalculated giving effect to the following pro forma adjustmentapplicable fiscal quarter; provided that:
(ai) Consolidated EBITDA shall such amounts to be increased designated are actually received by Holdings (i) on or after the first Business Day of the applicable fiscal quarter and (ii) on or prior to the tenth (10th) day after the date on which financial statements are required to be delivered with respect to such applicable fiscal quarter and (the “Cure Expiration Date”);
(ii) such amounts to be designated do not exceed the maximum aggregate amount necessary to cure any four Event of Default under the Financial Covenants as of such date; provided that if there is an Event of Default under both of the Financial Covenants, such amounts to be designated do not exceed the maximum aggregate amount necessary to cure any Event of Default under both of the Financial Covenants as of such date; and
(iii) the Borrower will have provided notice to the Revolving Administrative Agent on the date such amounts are designated as a “Cure Amount” (it being understood that to the extent such notice is provided in advance of delivery of a Compliance Certificate for the applicable period, the amount of such Net Proceeds that is designated as the Cure Amount may be lower than specified in such notice to the extent that the amount necessary to cure any Event of Default under the Financial Covenants is less than the full amount of such originally designated amount). The Cure Amount used to calculate Consolidated EBITDA for one fiscal quarter period will be used and included when calculating Consolidated EBITDA for each Test Period that contains includes such fiscal quarter, solely . The parties hereby acknowledge that this Section 7.03(a) may not be relied on for the purpose purposes of measuring calculating any baskets or financial ratios other than as applicable to the Financial Performance Covenant Covenants (and may not be included for purposes of determining pricing, mandatory prepayments and the availability or amount permitted pursuant to any other purpose covenant under this Agreement, by an Article VI) and may not result in any adjustment to any amounts (including the amount equal of Indebtedness) or increase in cash with respect to the fiscal quarter with respect to which such Cure Amount;
(b) if, after giving effect Amount was received other than the amount of the Consolidated EBITDA referred to in the immediately preceding sentence. Notwithstanding anything to the foregoing pro forma adjustment contrary contained in Section 7.01 and Section 7.02, (without giving effect to any portion x) upon designation of the Cure Amount on the balance sheet by Holdings in an amount necessary to cure any Event of the Borrower and its Restricted Subsidiaries with respect to such fiscal quarter only but with giving pro forma effect to any portion of the Cure Amount applied to any repayment of any Indebtedness), the Borrower and its Restricted Subsidiaries shall then be in compliance with the requirements of Default under the Financial Performance Covenants, the Borrower and its Restricted Subsidiaries shall Financial Covenants will be deemed to have satisfied the requirements of the Financial Performance Covenant and complied with as of the end of the relevant date of determination fiscal quarter with the same effect as though there had been no failure to comply therewith at such date, with the Financial Covenants and any Event of Default under the applicable breach or default Financial Covenants (and any other Default as a result thereof) will be deemed not to have occurred for purposes of the Loan Documents, (y) from and after the date that the Borrower delivers a written notice to the Revolving Administrative Agent that it intends to exercise its cure right under this Section 7.03 (a “Notice of Intent to Cure”) neither the Revolving Administrative Agent nor any Lender may exercise any rights or remedies under any Loan Document on the basis of any actual or purported Event of Default under the Financial Performance Covenant that had Covenants until and unless the Cure Expiration Date has occurred without the Cure Amount having been designated and (z) no Lender or L/C Issuer shall be deemed cured for required to (but in its sole discretion may) make any Revolving Loan or make a L/C Credit Extension from and after such time as the purposes Revolving Administrative Agent has received the Notice of this Agreement; andIntent to Cure unless and until the Cure Amount is actually received.
(cb) Notwithstanding anything herein to the contrary, (i) in In each period of four consecutive fiscal quarter period of the Borrower quarters, there shall be at least no more than two (2) fiscal quarters in which the Cure Right cure right set forth in Section 7.03(a) is not exercised, .
(iic) There shall be no more than five (5) fiscal quarters in which the cure rights set forth in Section 7.03(a) are exercised during the term of this Agreement, the Cure Right shall not be exercised more than five times, (iii) the Cure Amount shall be no greater than the amount required for purposes of complying with the Financial Performance Covenant and any amounts in excess thereof shall not be deemed to be a Cure Amount and (iv) the Lenders shall not be required to make a Loan or issue, amend, renew or extend any Letter of Credit unless and until the Borrower has received the Cure Amount required to cause the Borrower and the Restricted Subsidiaries to be in compliance with the Financial Performance Covenants. Notwithstanding any other provision in this Agreement to the contrary, the Cure Amount received pursuant to any exercise of the Cure Right shall be disregarded for purposes of determining the Available Amount, the Available Equity Amount, any financial ratio-based conditions or tests, pricing or any available basket under Article VI of this AgreementFacilities.
Appears in 6 contracts
Samples: Credit Agreement (Koppers Holdings Inc.), Credit Agreement (Koppers Holdings Inc.), Credit Agreement (Koppers Holdings Inc.)
Right to Cure. (a) Notwithstanding anything to the contrary contained in Section 7.018.01(b), in the event that the Borrower and its Restricted Subsidiaries fail fails to comply with the requirements of the Financial Performance Covenant as of Covenant, from the last day of any fiscal quarter of the Borrower, at any time after the beginning of such fiscal quarter Test Period until the expiration of the 10th fifteenth Business Day following after the date on which the financial statements with respect to the Test Period in which such fiscal quarter (or the fiscal year ended on the last day of such fiscal quarter) covenant is being measured are required to be delivered pursuant to Section 5.01(a) or Section 5.01(b)6.01, the Borrower or may designate any Parent Entity thereof shall have direct equity investment in the right to issue Borrower in cash in the form of common Equity Interests (or other Qualified Equity Interests (provided such other Equity Interests are of the Borrower reasonably satisfactory acceptable to the Administrative Agent) for cash or otherwise receive cash contributions to made during the capital Test Period until the end of the Borrower such time period as cash common Equity Interests or other Equity Interests a Cure Amount (provided such other Equity Interests are reasonably satisfactory to the Administrative Agent) (collectively, the “Cure Right”), and upon the receipt by the Borrower of net cash proceeds corresponding to the Net Proceeds exercise of such issuance that are not otherwise applied the Cure Right (the “Cure Amount”) pursuant to ), the exercise by the Borrower of such Cure Right such Financial Performance Covenant shall be recalculated recalculated, giving effect to the following a pro forma adjustment:
increase to Consolidated EBITDA for such Test Period in an amount equal to such Cure Amount; provided that (ax) such pro forma adjustment to Consolidated EBITDA shall be increased with respect to such applicable fiscal quarter and any four fiscal quarter period that contains such fiscal quarter, given solely for the purpose of measuring determining the existence of a Default or an Event of Default under the Financial Performance Covenant with respect to any Test Period that includes the fiscal quarter for which such Cure Right was exercised and not for any other purpose under this Agreementany Loan Document (including, by an without limitation, for purposes of determining pricing, mandatory prepayments and the availability or amount equal permitted pursuant to any covenant under Article VII) for the quarter with respect to which such Cure Right was exercised and (y) there shall be no reduction in Indebtedness in connection with any Cure Amounts for determining compliance with Section 7.09 and no Cure Amounts will reduce (or count towards) the First Lien Leverage Ratio, the Secured Leverage Ratio or the Total Leverage Ratio for purposes of any calculation thereof, in each case, for the fiscal quarter with respect to which such Cure Right was exercised, except that with respect to fiscal quarters thereafter, such reduction may apply but only to the Cure Amount;extent the proceeds are actually applied to prepay Indebtedness pursuant to Section 2.05(a).
(b) ifIf, after giving effect to the foregoing pro forma adjustment (without giving effect to any portion exercise of the Cure Amount on Right and the balance sheet of the Borrower and its Restricted Subsidiaries with respect recalculations pursuant to such fiscal quarter only but with giving pro forma effect to any portion of the Cure Amount applied to any repayment of any Indebtedness)clause (a) above, the Borrower and its Restricted Subsidiaries shall then be in compliance with the requirements of the Financial Performance CovenantsCovenant during such Test Period (including for purposes of Section 4.03), the Borrower and its Restricted Subsidiaries shall be deemed to have satisfied the requirements of the Financial Performance Covenant as of the relevant date of determination with the same effect as though there had been no failure to comply therewith at such date, and the applicable breach Default or default Event of the Financial Performance Covenant Default under Section 8.01 that had occurred shall be deemed cured for cured; provided that (i) the purposes of this Agreement; and
Cure Right may be exercised on no more than five (c5) Notwithstanding anything herein to the contraryoccasions, (iii) in each four consecutive fiscal quarter period of the Borrower period, there shall be at least two fiscal quarters in respect of which the no Cure Right is not exercised, (ii) during the term of this Agreement, the Cure Right shall not be exercised more than five times, and (iii) with respect to any exercise of the Cure Right, the Cure Amount shall be no greater than the amount required for purposes of complying to cause the Borrower to be in compliance with the Financial Performance Covenant and any amounts Covenant.
(c) Notwithstanding anything in excess thereof this Agreement to the contrary, following the delivery by the Borrower of a written notice to the Administrative Agent of its intent to exercise the Cure Right (x) the Lenders shall not be deemed permitted to be exercise any rights then available as a result of an Event of Default under this Article VIII on the basis of a breach of the Financial Covenant so as to enable the consummation of the Cure Amount Right as permitted under this Section 8.05 and (ivy) the Lenders shall not be required to make a Loan or issue, amend, renew or extend any Letter of Credit Extension and the L/C Issuers shall not be required to make any L/C Credit Extension unless and until the Borrower has received the Cure Amount required to cause the Borrower and the Restricted Subsidiaries to be in compliance with the Financial Performance Covenants. Notwithstanding any other provision in this Agreement to the contrary, the Cure Amount received pursuant to any exercise of the Cure Right shall be disregarded for purposes of determining the Available Amount, the Available Equity Amount, any financial ratio-based conditions or tests, pricing or any available basket under Article VI of this AgreementCovenant.
Appears in 5 contracts
Samples: Credit Agreement (Wyndham Hotels & Resorts, Inc.), Credit Agreement (Wyndham Hotels & Resorts, Inc.), Credit Agreement (Wyndham Hotels & Resorts, Inc.)
Right to Cure. Notwithstanding anything to the contrary contained in Section 7.01, in the event that the Borrower and its Restricted Subsidiaries Parties fail (or, but for the operation of this Section 7.02, would fail) to comply with the requirements of the Financial Performance Covenant as of the last day of any fiscal quarter of the BorrowerCovenant, at any time after the beginning of such fiscal quarter until the expiration of the 10th Business Day following tenth day subsequent to the date on which (i) the financial statements with respect to such fiscal quarter (or the fiscal year ended on the last day of such fiscal quarter) Required Financial Statements are required to be delivered pursuant to Section 5.01(a5.04(a) or Section 5.01(b(b) and (ii) the Financial Performance Covenant is required to be tested (the “Cure Expiration Date”), the Borrower or any Parent Entity thereof shall have the right to issue common Equity Interests or other Equity Interests (provided such other Equity Interests are reasonably satisfactory to the Administrative Agent) Permitted Cure Securities for cash or otherwise receive cash contributions to the capital of the Borrower as cash common Equity Interests equity (or other Equity Interests (provided such other Equity Interests are equity reasonably satisfactory to the Administrative Agent) capital of such Parent Entity, and, in each case, to contribute any such cash to the capital of the Borrower (collectively, the “Cure Right”)) and, and upon the receipt by the Borrower of the Net Proceeds of such issuance that are not otherwise applied cash (the “Cure Amount”) pursuant to the exercise by the Borrower such Parent Entity of such Cure Right such Right, the Financial Performance Covenant shall be recalculated giving effect to the following a pro forma adjustment:
(a) adjustment by which Consolidated EBITDA shall be increased with respect to such applicable fiscal quarter and any four fiscal four-quarter period that contains such fiscal quarter, solely for the purpose of measuring the Financial Performance Covenant and not for any other purpose under this Agreement, by an amount equal to the Cure Amount;
. The resulting increase to Consolidated EBITDA from the application of a Cure Amount shall not result in any adjustment to Consolidated EBITDA or any other financial definition for any purpose under this Agreement other than for purposes of calculating the Financial Performance Covenant. In each four fiscal quarter period there shall be at least two fiscal quarters in which the Cure Right is not exercised and the Cure Right may not be exercised more than five times during the term of this Agreement. For purposes of this Section 7.02, the Cure Amount shall be no greater than the amount required for purposes of complying with the Financial Performance Covenant and no effect shall be given to the Cure Amount (bincluding any prepayment of Indebtedness with the Cure Amount) ifother than the recalculation of Consolidated EBITDA pursuant to this Section 7.02. If, after giving effect to the foregoing pro forma adjustment (without giving effect to any portion of the Cure Amount on the balance sheet of the Borrower and its Restricted Subsidiaries with respect to such fiscal quarter only but with giving pro forma effect to any portion of the Cure Amount applied to any repayment of any Indebtedness)adjustments in this Section 7.02, the Borrower and its Restricted Subsidiaries shall then be in compliance with the requirements of the Financial Performance CovenantsCovenant, the Borrower and its Restricted Subsidiaries shall be deemed to have satisfied the requirements of the Financial Performance Covenant as of the relevant date of determination with the same effect as though there had been no failure to comply therewith at such date, and the applicable breach or default of the Financial Performance Covenant and any related default that had occurred shall be deemed cured for the purposes of this Agreement; and
(c) Notwithstanding anything herein to the contrary, (i) in each four consecutive fiscal quarter period of the Borrower there shall be at least two fiscal quarters in which the Cure Right is not exercised, (ii) during the term of this Agreement, the Cure Right shall not be exercised more than five times, (iii) the Cure Amount shall be no greater than the amount required for purposes of complying with the Financial Performance Covenant and any amounts in excess thereof shall not be deemed to be a Cure Amount and (iv) the Lenders shall not be required to make a Loan or issue, amend, renew or extend any Letter of Credit unless and until the Borrower has received the Cure Amount required to cause the Borrower and the Restricted Subsidiaries to be in compliance with the Financial Performance Covenants. Notwithstanding any other provision in this Agreement to the contrary, the Cure Amount received pursuant to any exercise of the Cure Right shall be disregarded for purposes of determining the Available Amount, the Available Equity Amount, any financial ratio-based conditions or tests, pricing or any available basket under Article VI of this Agreement.
Appears in 5 contracts
Samples: Revolving Credit Agreement (AZEK Co Inc.), Revolving Credit Agreement (AZEK Co Inc.), Revolving Credit Agreement (AZEK Co Inc.)
Right to Cure. (a) Notwithstanding anything to the contrary contained in Section 7.01, in the event that the Borrower and its Restricted Subsidiaries fail fails to comply with the requirements of the Financial Performance Covenant as of the last day of any fiscal quarter of the Borrowerfinancial covenants set forth in Sections 6.11 and 6.12, at any time after the beginning of such fiscal quarter if then in effect, until the expiration of the 10th tenth Business Day following subsequent to the date on which the financial statements certificate calculating compliance with respect to such fiscal quarter (or the fiscal year ended on the last day of such fiscal quarter) are Sections 6.11 and 6.12 is required to be delivered pursuant to Section 5.01(a5.01(c) or Section 5.01(b(such required date, the “Delivery Deadline” and the tenth Business Day thereafter, the “Cure Deadline”), the shareholders of the Borrower or any Parent Entity thereof shall have the right to issue common Equity Interests or other Equity Interests (provided such other Equity Interests are reasonably satisfactory contribute cash to the Administrative Agent) for cash or otherwise receive cash contributions to the capital equity of the Borrower as cash common Equity Interests or other Equity Interests (provided such other Equity Interests are reasonably satisfactory in an aggregate amount equal to the Administrative Agent) amount necessary to cure the relevant failure to comply with Sections 6.11 and 6.12 (collectively, the “Cure Right”), and upon the receipt by the Borrower of the Net Proceeds of such issuance that are not otherwise applied cash (the “Cure Amount”) pursuant to the exercise by the shareholders of the Borrower of such Cure Right such Financial Performance Covenant Right, the Total Net Leverage Ratio and the Interest Coverage Ratio shall be recalculated giving effect to the following pro forma adjustmentadjustments:
(ai) Consolidated EBITDA for shall be increased with respect to such applicable fiscal quarter and any four fiscal quarter period that contains such fiscal quarterincreased, solely for the purpose of measuring the Financial Performance Covenant compliance with Sections 6.11 and 6.12 and not for any other purpose under this Agreement, by an amount equal to the Cure Amount;; and
(bii) ifIf, after giving effect to the foregoing pro forma adjustment (without giving effect to any portion of the Cure Amount on the balance sheet of the Borrower and its Restricted Subsidiaries with respect to such fiscal quarter only but with giving pro forma effect to any portion of the Cure Amount applied to any repayment of any Indebtedness)recalculations, the Borrower and its Restricted Subsidiaries shall then be in compliance with the requirements of the Financial Performance CovenantsTotal Net Leverage Ratio and Interest Coverage Ratio under Sections 6.11 and 6.12, the Borrower and its Restricted Subsidiaries shall be deemed to have satisfied the requirements of the Financial Performance Covenant Total Net Leverage Ratio and Interest Coverage Ratio as of the relevant date of determination with the same effect as though there had been no failure to comply therewith at such date, and the applicable breach or default of the Financial Performance Covenant Sections 6.11 and 6.12 that had occurred shall be deemed cured for this purpose under this Agreement.
(b) Upon receipt by the Administrative Agent of written notice on the Delivery Deadline that the Borrower intends to exercise the Cure Right in respect of such Fiscal Quarter or Fiscal Year, the Lenders shall not be permitted to accelerate the Loans held by them, exercise remedies against the Collateral or any other rights and remedies under any of the Loan Documents that are available during the continuance of an Event of Default on the basis of a failure to comply with the requirements of the financial covenants set forth in Sections 6.11 and 6.12, unless such failure is not cured by the Borrower’s receipt of the Cure Amount on or prior to the Cure Deadline; provided that, during such period until the Cure Amount has been received by the Borrower as provided above, a Default in respect of such failure to comply with Sections 6.11 and 6.12 shall continue to exist for all purposes of this Agreement; andAgreement and the other Loan Documents.
(c) Notwithstanding anything herein to the contrary, (i) in each four consecutive fiscal quarter four-Fiscal Quarter period of the Borrower there shall be at least two fiscal quarters Fiscal Quarter in which the Cure Right is not exercised, exercised and (ii) during the term of this Agreement, the Cure Right shall not be exercised more than five times, (iii) times during the Cure Amount shall be no greater than the amount required for purposes of complying with the Financial Performance Covenant and any amounts in excess thereof shall not be deemed to be a Cure Amount and (iv) the Lenders shall not be required to make a Loan or issue, amend, renew or extend any Letter of Credit unless and until the Borrower has received the Cure Amount required to cause the Borrower and the Restricted Subsidiaries to be in compliance with the Financial Performance Covenants. Notwithstanding any other provision in this Agreement to the contrary, the Cure Amount received pursuant to any exercise of the Cure Right shall be disregarded for purposes of determining the Available Amount, the Available Equity Amount, any financial ratio-based conditions or tests, pricing or any available basket under Article VI term of this Agreement.
Appears in 4 contracts
Samples: Credit Agreement (YETI Holdings, Inc.), Credit Agreement (YETI Holdings, Inc.), Credit Agreement (YETI Holdings, Inc.)
Right to Cure. (a) Notwithstanding anything to the contrary contained in Section 7.01, in the event that the Parent Borrower and its the Restricted Subsidiaries fail to comply with the requirements of the Financial Performance Covenant as of the last day of any fiscal quarter of the Parent Borrower, at any time after the beginning of such fiscal quarter until the expiration of the 10th Business Day following day subsequent to the earlier of (i) the date on which a Compliance Certificate with respect to such fiscal quarter (or the fiscal year ended on the last day of such fiscal quarter) is delivered in accordance with Section 5.01(d) and (ii) the date on which the financial statements with respect to such fiscal quarter (or the fiscal year ended on the last day of such fiscal quarter) are required to be delivered pursuant to Section 5.01(a) or Section 5.01(b(b), the Borrower or any Parent Entity thereof as applicable, Holdings shall have the right to issue common Qualified Equity Interests or other Equity Interests (provided such other Equity Interests are reasonably satisfactory to the Administrative Agent) for cash or otherwise receive cash contributions to the capital of Holdings as cash common equity or other Qualified Equity Interests (which Holdings shall contribute through its subsidiaries of which the Parent Borrower is a subsidiary to the Borrower as cash common Equity Interests or other Equity Interests (provided such other Equity Interests are reasonably satisfactory to the Administrative Agentequity) (collectively, the “Cure Right”), and upon the receipt by the Parent Borrower of the Net Proceeds of such issuance that are not otherwise applied Not Otherwise Applied (the “Cure Amount”) pursuant to the exercise by the Borrower Holdings of such Cure Right such Financial Performance Covenant shall be recalculated giving effect to the following pro forma adjustment:
(a1) Consolidated EBITDA shall be increased with respect to such applicable fiscal quarter and any four fiscal quarter period that contains such fiscal quarter, solely for the purpose of measuring the Financial Performance Covenant and not for any other purpose under this Agreement, by an amount equal to the Cure Amount;; and
(b2) if, after giving effect to the foregoing pro forma adjustment (without giving effect to any repayment of any Indebtedness with any portion of the Cure Amount or any portion of the Cure Amount on the balance sheet of the Parent Borrower and its Restricted Subsidiaries Subsidiaries, in each case, with respect to such fiscal quarter only but with giving pro forma effect to any portion of the Cure Amount applied to any repayment of any Indebtednessonly), the Parent Borrower and its Restricted Subsidiaries shall then be in compliance with the requirements of the Financial Performance Covenants, the Parent Borrower and its Restricted Subsidiaries shall be deemed to have satisfied the requirements of the Financial Performance Covenant as of the relevant date of determination with the same effect as though there had been no failure to comply therewith at such date, and the applicable breach or default of the Financial Performance Covenant that had occurred shall be deemed cured for the purposes of this Agreement; and;
(cb) Notwithstanding anything herein to the contrary, (i) in each four consecutive fiscal quarter period of the Parent Borrower there shall be at least two fiscal quarters in which the Cure Right is not exercised, (ii) during the term of this Agreement, the Cure Right shall not be exercised more than five times, times and (iii) for purposes of this Section 7.02, the Cure Amount shall be no greater than the amount required for purposes of complying with the Financial Performance Covenant and any amounts in excess thereof shall not be deemed to be a Cure Amount and (iv) the Lenders shall not be required to make a Loan or issue, amend, renew or extend any Letter of Credit unless and until the Borrower has received the Cure Amount required to cause the Borrower and the Restricted Subsidiaries to be in compliance with the Financial Performance CovenantsAmount. Notwithstanding any other provision in this Agreement to the contrary, the Cure Amount received pursuant to any exercise of the Cure Right shall be disregarded for purposes of determining the Available Amount, the Available Equity Amount, any financial ratio-based conditions or testsconditions, pricing or any available basket under Article VI of this AgreementAgreement and there shall not have been a breach of any covenant under Article VI of this Agreement by reason of having no longer included such Cure Amount in any basket during the relevant period.
Appears in 4 contracts
Samples: Credit Agreement (SMART Global Holdings, Inc.), Credit Agreement (SMART Global Holdings, Inc.), Credit Agreement (SMART Global Holdings, Inc.)
Right to Cure. Notwithstanding anything to the contrary contained in Section 7.018.01, in the event that the Borrower and its Restricted Subsidiaries fail fails (or, but for the operation of this Section 8.02, would fail) to comply with the requirements of the Financial Performance Covenant as of the last day of any fiscal quarter of the BorrowerCovenant, at any time after the beginning of such fiscal quarter until the expiration of the 10th tenth Business Day following subsequent to the date on which the financial statements with respect to such fiscal quarter (or the fiscal year ended on the last day of such fiscal quarter) Required Financial Statements are required to be delivered pursuant to Section 5.01(a5.04(1) or Section 5.01(b)(2) for the applicable fiscal quarter, the Borrower or any Parent Entity thereof shall have the right to issue common Equity Interests or other Equity Interests Permitted Cure Securities for cash (provided that, if such other Equity Interests Permitted Cure Securities are not in the form of common equity, the terms of such Permitted Cure Securities must be reasonably satisfactory acceptable to the Administrative Agent) for cash or otherwise receive cash contributions to the capital of the Borrower as Borrower, and, in each case, to contribute any such cash common Equity Interests or other Equity Interests (provided such other Equity Interests are reasonably satisfactory to the Administrative Agent) capital of the Borrower (collectively, the “Cure Right”)) and, and upon the receipt by the Borrower of the Net Proceeds of such issuance that are not otherwise applied cash (the “Cure Amount”) pursuant to the exercise by the Borrower of such Cure Right such Right, the Financial Performance Covenant shall be recalculated giving effect to the following a pro forma adjustment:
(a) adjustment by which Consolidated EBITDA shall be increased with respect to such applicable fiscal quarter and any four fiscal quarter period Test Period that contains such fiscal quarter, solely for the purpose of measuring the Financial Performance Covenant and not for any other purpose under this Agreement, by an amount equal to the Cure Amount;
(b) if. The resulting increase to Consolidated EBITDA from the application of a Cure Amount shall not result in any adjustment to Consolidated EBITDA or any other financial definition for any purpose under this Agreement other than for purposes of calculating the Financial Performance Covenant and there shall be no pro forma or other reduction in Indebtedness from the application of a Cure Amount for purposes of calculating the Financial Performance Covenant unless such Cure Amount is actually applied to prepay Indebtedness. In each four fiscal quarter period there shall be at least two fiscal quarters in which the Cure Right is not exercised and the Cure Right may not be exercised more than five times during the term of this Agreement and, for purposes of this Section 8.02, the Cure Amount shall be no greater than the amount required for purposes of complying with the Financial Performance Covenant. If, after giving effect to the foregoing pro forma adjustment (without giving effect to any portion of the Cure Amount on the balance sheet of the Borrower and its Restricted Subsidiaries with respect to such fiscal quarter only but with giving pro forma effect to any portion of the Cure Amount applied to any repayment of any Indebtedness)adjustments in this Section 8.02, the Borrower and its Restricted Subsidiaries shall then be in compliance with the requirements of the Financial Performance CovenantsCovenant, the Borrower and its Restricted Subsidiaries shall be deemed to have satisfied the requirements of the Financial Performance Covenant as of the relevant date of determination with the same effect as though there had been no failure to comply therewith at such date, and the applicable breach or default of the Financial Performance Covenant and any related default that had occurred shall be deemed cured for the purposes of this Agreement; and
(c) . Notwithstanding anything herein to the contraryforegoing, (i) in each four consecutive fiscal quarter period after the occurrence of an Event of Default under the Financial Performance Covenant, the Borrower there shall be at least two fiscal quarters in which the Cure Right is not exercised, (ii) during the term of this Agreement, the Cure Right shall not be exercised more than five times, (iii) able to request the Cure Amount shall be no greater than the amount required for purposes making of complying with the Financial Performance Covenant and any amounts in excess thereof shall not be deemed to be a Cure Amount and (iv) the Lenders shall not be required to make a Loan or issue, amend, renew the issuance or extend renewal of any Letter of Credit unless and until receipt by the Borrower has received the Cure Amount required to cause the Borrower and the Restricted Subsidiaries to be in compliance with the Financial Performance Covenants. Notwithstanding any other provision in this Agreement to the contrary, the Cure Amount received pursuant to any exercise of the Cure Right shall be disregarded for purposes of determining the Available Amount, the Available Equity Amount, any financial ratio-based conditions or tests, pricing or any available basket under Article VI of this Agreement.
Appears in 4 contracts
Samples: Revolving Credit Agreement (Amneal Pharmaceuticals, Inc.), Revolving Credit Agreement (Amneal Pharmaceuticals, Inc.), Revolving Credit Agreement (Amneal Pharmaceuticals, Inc.)
Right to Cure. (a) Notwithstanding anything to the contrary contained in Section 7.01, in the event that the Parent Borrower and its the Restricted Subsidiaries fail to comply with the requirements of the Financial Performance Covenant as of the last day of any fiscal quarter of the Parent Borrower, at any time after the beginning of such fiscal quarter until the expiration of the 10th Business Day following day subsequent to the earlier of (i) the date on which a Compliance Certificate with respect to such fiscal quarter (or the fiscal year ended on the last day of such fiscal quarter) is delivered in accordance with Section 5.01(d) and (ii) the date on which the financial statements with respect to such fiscal quarter (or the fiscal year ended on the last day of such fiscal quarter) are required to be delivered pursuant to to
Section 5.01(a5.01 (a) or Section 5.01(b(b), the Borrower or any Parent Entity thereof as applicable, Holdings shall have the right to issue common Qualified Equity Interests or other Equity Interests (provided such other Equity Interests are reasonably satisfactory to the Administrative Agent) for cash or otherwise receive cash contributions to the capital of Holdings as cash common equity or other Qualified Equity Interests (which Holdings shall contribute through its subsidiaries of which the Parent Borrower is a subsidiary to the Borrower as cash common Equity Interests or other Equity Interests (provided such other Equity Interests are reasonably satisfactory to the Administrative Agentequity) (collectively, the “Cure Right”), and upon the receipt by the Parent Borrower of the Net Proceeds of such issuance that are not otherwise applied (the “Cure Amount”) pursuant to the exercise by the Borrower Holdings of such Cure Right such Financial Performance Covenant shall be recalculated giving effect to the following pro forma adjustment:
(a1) Consolidated EBITDA shall be increased with respect to such applicable fiscal quarter and any four fiscal quarter period that contains such fiscal quarter, solely for the purpose of measuring the Financial Performance Covenant and not for any other purpose under this Agreement, by an amount equal to the Cure Amount;; and
(b2) if, after giving effect to the foregoing pro forma adjustment (without giving effect to any repayment of any Indebtedness with any portion of the Cure Amount or any portion of the Cure Amount on the balance sheet of the Parent Borrower and its Restricted Subsidiaries Subsidiaries, in each case, with respect to such fiscal quarter only but with giving pro forma effect to any portion of the Cure Amount applied to any repayment of any Indebtednessonly), the Parent Borrower and its Restricted Subsidiaries shall then be in compliance with the requirements of the Financial Performance Covenants, the Parent Borrower and its Restricted Subsidiaries shall be deemed to have satisfied the requirements of the Financial Performance Covenant as of the relevant date of determination with the same effect as though there had been no failure to comply therewith at such date, and the applicable breach or default of the Financial Performance Covenant that had occurred shall be deemed cured for the purposes of this Agreement; and;
(cb) Notwithstanding anything herein to the contrary, (i) in each four consecutive fiscal quarter period of the Parent Borrower there shall be at least two fiscal quarters in which the Cure Right is not exercised, (ii) during the term of this Agreement, the Cure Right shall not be exercised more than five times, times and (iii) for purposes of this Section 7.02, the Cure Amount shall be no greater than the amount required for purposes of complying with the Financial Performance Covenant and any amounts in excess thereof shall not be deemed to be a Cure Amount and (iv) the Lenders shall not be required to make a Loan or issue, amend, renew or extend any Letter of Credit unless and until the Borrower has received the Cure Amount required to cause the Borrower and the Restricted Subsidiaries to be in compliance with the Financial Performance CovenantsAmount. Notwithstanding any other provision in this Agreement to the contrary, the Cure Amount received pursuant to any exercise of the Cure Right shall be disregarded for purposes of determining the Available Amount, the Available Equity Amount, any financial ratio-based conditions or testsconditions, pricing or any available basket under Article VI of this AgreementAgreement and there shall not have been a breach of any covenant under Article VI of this Agreement by reason of having no longer included such Cure Amount in any basket during the relevant period.
Appears in 4 contracts
Samples: Credit Agreement (SMART Global Holdings, Inc.), Credit Agreement (SMART Global Holdings, Inc.), Credit Agreement (SMART Global Holdings, Inc.)
Right to Cure. Notwithstanding anything to the contrary contained in Section 7.01, in the event that the Borrower and its Restricted Subsidiaries fail fails to comply with the requirements of the Financial Performance Covenant as of the last day of any fiscal quarter of the BorrowerMaintenance Covenants described in Section 6.13(a) and Section 6.13(b), at any time after from the beginning first day of such fiscal applicable quarter until the expiration of the 10th fifteenth Business Day following subsequent to the date on which the financial statements with respect to such fiscal quarter (or the fiscal year ended on the last day of such fiscal quarter) are required to be delivered pursuant to Section 5.01(a) or Section 5.01(b), as applicable, the Borrower (or any Parent Entity thereof thereof) shall have the right to issue common Qualified Equity Interests or other Equity Interests (provided such other Equity Interests are reasonably satisfactory to the Administrative AgentAgent (but excluding Disqualified Equity Interests) (each such issuance taken pursuant and in accordance with this Section 7.02, a “Specified Equity Issuance”) for cash or otherwise receive cash contributions to (or in the capital case of any other Parent Entity, receive equity interests in the Borrower for its cash contributions to) the Equity Interests (other than Disqualified Equity Interests) of the Borrower as cash common equity or other Qualified Equity Interests or other Equity Interests (provided such other Equity Interests are reasonably satisfactory to the Administrative Agent) , in each case, which are contributed to the Borrower in the form of cash (collectively, the “Cure Right”), and upon the receipt by the Borrower of the Net Proceeds of such issuance that are not otherwise applied Not Otherwise Applied (the “Cure Amount”) pursuant to the exercise by the Borrower of such Cure Right such Right, the Financial Performance Maintenance Covenant shall be recalculated giving pro form effect to the following pro forma adjustment:
(ai) Consolidated EBITDA and/or Consolidated Cash EBITDA shall be increased with respect to such applicable fiscal quarter with respect to which such Cure Amount is received by the Borrower and any four fiscal quarter period Test Period that contains includes such fiscal quarter, solely for the purpose of measuring the applicable Financial Performance Covenant Maintenance Covenant(s) and not for any other purpose under this Agreement, by an amount equal to the Cure AmountAmount and (ii) with respect to the LTV Covenant, Consolidated Total Net Debt shall be reduced by the portion of the Cure Amount that is actually applied to prepay such Indebtedness;
(b) if, after giving effect to the foregoing pro forma adjustment (without giving effect to any portion of the Cure Amount on the balance sheet of the Borrower and its Restricted Subsidiaries with respect to such fiscal quarter only but with giving pro forma effect to any portion of the Cure Amount applied to any repayment of any Indebtedness)recalculation, the Borrower and its Restricted Subsidiaries shall then be in compliance with the requirements of the applicable Financial Performance CovenantsMaintenance Covenant(s), the Borrower and its Restricted Subsidiaries shall be deemed to have satisfied the requirements of the applicable Financial Performance Covenant Maintenance Covenant(s) as of the relevant date of determination with the same effect as though there had been no failure to comply therewith at such date, and the applicable breach or default of the applicable Financial Performance Covenant Maintenance Covenant(s) that had occurred shall be deemed cured for the purposes of this Agreement; and;
(c) Notwithstanding upon the Administrative Agent’s receipt of a written notice from the Borrower that the Borrower intends to exercise the Cure Right (a “Notice of Intent to Cure”), until the fifteenth Business Day following the date on which financial statements for the fiscal quarter to which such Notice of Intent to Cure relates are required to be delivered pursuant to Section 5.01(a) or (b)(i), as applicable, neither the Administrative Agent (nor any sub-agent therefor) nor any Lender shall exercise any right to accelerate the Loans or terminate the Revolving Commitments, and none of the Administrative Agent (nor any sub-agent therefor) nor any Lender or Secured Party shall exercise any right to foreclose on or take possession of the Collateral or any other right or remedy under the Loan Documents solely on the basis of the relevant failure to comply with Section 6.13;
(d) there shall be no pro forma or other reduction of the amount of Consolidated Total Net Debt (by netting or otherwise) by the amount of the applicable Cure Amount for purposes of determining compliance with Section 6.13(a) in the fiscal quarter in respect of which the Cure Right was exercised; provided that, any portion of such Cure Amount that is actually applied to repay Indebtedness or “netted” against such Indebtedness shall reduce Consolidated Total Net Debt in future Test Periods which include such fiscal quarter;
(e) notwithstanding anything herein to the contrary, (i) in each four consecutive fiscal quarter period of the Borrower there shall be at least no more than two fiscal quarters in which the Cure Right is not exercised, (ii) during the term of this Agreement, the Cure Right shall not be exercised more than five times, times and (iii) for purposes of this Section 7.02, the Cure Amount shall be no greater than the amount required for purposes of complying with the applicable Financial Performance Covenant and any amounts in excess thereof shall not be deemed to be a Cure Amount and (iv) the Lenders shall not be required to make a Loan or issue, amend, renew or extend any Letter of Credit unless and until the Borrower has received the Cure Amount required to cause the Borrower and the Restricted Subsidiaries to be in compliance with the Financial Performance CovenantsMaintenance Covenant(s). Notwithstanding any other provision in this Agreement to the contrary, during any Test Period in which any Cure Amount is included in the calculation of Consolidated EBITDA and/or Consolidated Cash EBITDA as a result of any exercise of the Cure Right, the Cure Amount received pursuant to any exercise of the Cure Right shall be (A) counted solely as an increase to Consolidated EBITDA and/or Consolidated Cash EBITDA for the purpose of determining compliance with the applicable Financial Maintenance Covenant(s) and (B) disregarded for purposes of determining the Available Amount, the Available Equity Amount, any financial ratio-based conditions or testsprovisions, pricing Applicable Rate or any available basket under Article VI of this Agreement; and
(f) no Revolving Lender, Swingline Lender or Issuing Bank shall make any Revolving Loan or Swingline Loan or to issue any Letter of Credit from and after such time as the Administrative Agent has received the Notice of Intent to Cure unless and until the Cure Amount is actually received by the Borrower.
Appears in 3 contracts
Samples: Credit Agreement (GoHealth, Inc.), Credit Agreement (GoHealth, Inc.), Incremental Facility Agreement (GoHealth, Inc.)
Right to Cure. (a) Notwithstanding anything to the contrary contained in Section 7.01, in the event that Holdings and the Borrower and its Restricted Subsidiaries Co-Borrowers fail to comply with the requirements of the Financial Performance Covenant (if applicable) as of the last day of any applicable fiscal quarter of the BorrowerHoldings, at any time after the beginning of such fiscal quarter (but, in any event, after the Effective Date) until the expiration of the 10th tenth Business Day following subsequent to the date on which the financial statements with respect to such fiscal quarter (or the fiscal year ended on the last day of such fiscal quarter) are required to be delivered pursuant to Section 5.01(a) or Section 5.01(b(b), the Borrower or any Parent Entity thereof as applicable, Holdings shall have the right to issue common Qualified Equity Interests or other Equity Interests (provided such other Equity Interests are reasonably satisfactory to the Administrative Agent) for cash or otherwise receive cash contributions to the capital of the Borrower Holdings as cash common equity or other Qualified Equity Interests or other Equity Interests (provided such other Equity Interests are reasonably satisfactory to the Administrative Agent) (collectively, the “Cure Right”), and upon the receipt by the Borrower Holdings of the Net Proceeds of such issuance that are not otherwise applied (the “Cure Amount”) pursuant to the exercise by the Borrower Holdings of such Cure Right such Right, the Financial Performance Covenant shall be recalculated giving effect to the following pro forma adjustment:
(ai) Consolidated EBITDA shall be increased with respect to such applicable fiscal quarter and any four fiscal quarter period that contains such fiscal quarter, solely for the purpose of measuring the Financial Performance Covenant and not for any other purpose under this Agreement, by an amount equal to the Cure Amount;; and
(bii) if, after giving effect to the foregoing pro forma adjustment (without giving effect to any repayment of any Indebtedness with any portion of the Cure Amount or any portion of the Cure Amount on the balance sheet of Holdings and the Borrower and its Restricted Subsidiaries Subsidiaries, in each case, with respect to such fiscal quarter only but with giving pro forma effect to any portion of the Cure Amount applied to any repayment of any Indebtednessonly), the Borrower and its Restricted Subsidiaries Holdings shall then be in compliance with the requirements of the Financial Performance CovenantsCovenant, the Borrower and its Restricted Subsidiaries Holdings shall be deemed to have satisfied the requirements of the Financial Performance Covenant as of the relevant date of determination with the same effect as though there had been no failure to comply therewith at such date, and the applicable breach or default of the Financial Performance Covenant that had occurred shall be deemed cured for the purposes of this Agreement; andprovided that Holdings shall have notified the Administrative Agent of the exercise of such Cure Right within five Business Days of the issuance of the relevant Qualified Equity Interests for cash or the receipt of the cash contributions by Holdings.
(cb) Notwithstanding anything herein to the contrary, (i) in each four consecutive fiscal quarter period of the Borrower Holdings there shall be at least two (2) fiscal quarters in which the Cure Right is not exercised, (ii) during the term of this Agreement, the Cure Right shall not be exercised more than five times, (5) times and (iii) for purposes of this Section 7.02, the Cure Amount shall be no greater than the amount required for purposes of complying with the Financial Performance Covenant and any amounts in excess thereof shall not be deemed to be a Cure Amount and (iv) the Lenders shall not be required to make a Loan or issue, amend, renew or extend any Letter of Credit unless and until the Borrower has received the Cure Amount required to cause the Borrower and the Restricted Subsidiaries to be in compliance with the Financial Performance CovenantsAmount. Notwithstanding any other provision in this Agreement to the contrary, the Cure Amount received pursuant to any exercise of the Cure Right shall be disregarded for purposes of determining the Available Amount, the Available Equity Amount, any financial ratio-based conditions or tests, pricing or any available basket under Article VI of this Agreement. For the avoidance of doubt, no Cure Amounts shall be applied to reduce the Indebtedness of Holdings and the Restricted Subsidiaries on a Pro Forma Basis for purposes of determining compliance with the Financial Performance Covenants for the fiscal quarter in which such Cure Right was made (provided that to the extent such Cure Amounts are applied to prepay Indebtedness, such reduction may be given effect in determining compliance with the Financial Performance Covenant for fiscal quarters after the fiscal quarter in which such Cure Right was made) and there shall not have been a breach of any covenant under Article VI of this Agreement solely by reason of having no longer included such Cure Amount in any basket during the relevant period.
Appears in 3 contracts
Samples: Second Amendment (Graftech International LTD), Credit Agreement (Graftech International LTD), Credit Agreement (Graftech International LTD)
Right to Cure. Notwithstanding anything to the contrary contained in Section 7.0111.01, in the event that Borrower fails (or, but for the Borrower and its Restricted Subsidiaries fail operation of this Section 11.03, would fail) to comply with the requirements of the Financial Performance Covenant Covenant, as of the last day of any fiscal quarter of the Borrowerin which such Financial Performance Covenant is required to be tested, at any time after the beginning last day of such fiscal quarter until the expiration of the 10th day that is 10 Business Day following Days after the date on which the that financial statements with respect to for such fiscal quarter (or the fiscal year ended on the last day of such fiscal quarter) Fiscal Quarter are required to be delivered pursuant to Section 5.01(a9.01(b) or Section 5.01(b9.01(c), the Borrower or any Parent Entity thereof shall have the right (the “Cure Right”) to issue common Equity Interests or other Equity Interests (provided such other Equity Interests are reasonably satisfactory to the Administrative Agent) Qualified Capital Stock for cash or otherwise receive cash contributions in respect of Qualified Capital Stock which is promptly contributed to the capital of the Borrower as cash common Equity Interests or other Equity Interests (provided such other Equity Interests are reasonably satisfactory to the Administrative Agent) (collectively, the “Cure Right”)Borrower, and upon the receipt thereupon such Financial Performance Covenant shall be recalculated by increasing Consolidated EBITDA by the Borrower of the Net Proceeds of such issuance that are not otherwise applied amount (the “Cure Amount”) pursuant to the exercise by the Borrower of such Cure Right such Financial Performance Covenant shall be recalculated giving effect to the following pro forma adjustment:
(a) Consolidated EBITDA shall be increased Specified Equity Contribution with respect to such applicable fiscal quarter and any four fiscal four-quarter period that contains such fiscal quarter; provided that, (a) in each 4 consecutive fiscal quarter period, there shall be no more than 2 fiscal quarters in which a Specified Equity Contribution is made, (b) no more than 5 Specified Equity Contributions may be made in the aggregate during the term of this Agreement, (c) the amount of any Specified Equity Contribution shall be no greater than the amount required to cause Borrower to be in compliance with the Financial Performance Covenant, (d) there shall be no pro forma or other reduction of the amount of Indebtedness by the amount of any Cure Amount for purposes of determining compliance with Section 10.12 for the fiscal quarter in respect of which the Cure Right was exercised (other than, with respect to any future period, to the extent of any portion of such Cure Amount that is actually applied to repay Indebtedness), and (e) any adjustment on a pro forma basis to Consolidated EBITDA resulting from any Specified Equity Contribution shall be counted as Consolidated EBITDA solely for the purpose purposes of measuring determining compliance with the Financial Performance Covenant and shall not be included for any other purpose under this Agreement, by an amount equal to (including for purposes of determining the Cure Amount;
(bApplicable Margin or any financial ratio-based conditions or any “baskets”) ifduring any fiscal quarter in which the pro forma adjustment applies. If, after giving effect to the foregoing pro forma adjustment (without giving effect to any portion of the Cure Amount on the balance sheet of the adjustments in this paragraph, Borrower and its Restricted Subsidiaries with respect to such fiscal quarter only but with giving pro forma effect to any portion of the Cure Amount applied to any repayment of any Indebtedness), the Borrower and its Restricted Subsidiaries shall then be in compliance with the requirements of the Financial Performance CovenantsCovenant, the Borrower and its Restricted Subsidiaries shall be deemed to have satisfied the requirements of the Financial Performance Covenant as of the relevant date of determination with the same effect as though there had been no failure to comply therewith at such date, and the applicable breach or default of the Financial Performance Covenant that had occurred shall be deemed cured for the purposes of this Agreement; and
(c) Notwithstanding anything herein to the contrary, (i) in each four consecutive fiscal quarter period of the Borrower there shall be at least two fiscal quarters in which the Cure Right is not exercised, (ii) during the term of this Agreement, the Cure Right shall not be exercised more than five times, (iii) the Cure Amount shall be no greater than the amount required for purposes of complying with the Financial Performance Covenant and any amounts in excess thereof shall not be deemed to be a Cure Amount and (iv) the Lenders shall not be required to make a Loan or issue, amend, renew or extend any Letter of Credit unless and until the Borrower has received the Cure Amount required to cause the Borrower and the Restricted Subsidiaries to be in compliance with the Financial Performance Covenants. Notwithstanding any other provision in this Agreement to the contrary, the Cure Amount received pursuant to any exercise of the Cure Right shall be disregarded for purposes of determining the Available Amount, the Available Equity Amount, any financial ratio-based conditions or tests, pricing or any available basket under Article VI of this Agreement.
Appears in 3 contracts
Samples: Credit Agreement (ARKO Corp.), Credit Agreement (ARKO Corp.), Credit Agreement (ARKO Corp.)
Right to Cure. (a) Notwithstanding anything to the contrary contained in Section 7.01, in the event that if the Borrower and its Restricted Subsidiaries fail to comply with the requirements determines that an Event of the Financial Performance Covenant as of the last day Default in respect of any fiscal quarter of Financial Covenant has occurred or may occur, during the Borrower, at any time period commencing after the beginning of such the last fiscal quarter until the expiration of the 10th included in such Test Period and ending 15 Business Day following Days after the date on which the financial statements are required to be delivered hereunder with respect to such fiscal quarter (or the fiscal year ended on the last day of such fiscal quarter) are required to be delivered pursuant to Section 5.01(a) or Section 5.01(b“Cure Expiration Date”), a Designated Equity Contribution may be made to the Borrower or any Parent Entity (a “Designated Equity Contribution”), and the amount of the net cash proceeds thereof shall have the right be deemed to issue common Equity Interests or other Equity Interests (increase Consolidated EBITDA with respect to such applicable quarter; provided that such other Equity Interests net cash proceeds are reasonably satisfactory to the Administrative Agent) for cash or otherwise receive cash contributions to the capital of actually received by the Borrower as cash common Equity Interests or other Equity Interests equity (provided including through capital contribution of such other Equity Interests are reasonably satisfactory net cash proceeds to the Administrative AgentBorrower) (collectively, during the “Cure Right”), and upon period commencing after the receipt beginning of the last fiscal quarter included in such Test Period by the Borrower and ending on the Cure Expiration Date. The parties hereby acknowledge that this Section 7.02(a) may not be relied on for purposes of calculating any financial ratios other than as applicable to the Financial Covenants. Notwithstanding anything to the contrary contained in Section 7.01, (A) upon designation of the Net Proceeds of such issuance that are not otherwise applied (the “Cure Amount”) pursuant to the exercise Designated Equity Contribution by the Borrower of such Cure Right such Financial Performance Covenant shall be recalculated giving effect to the following pro forma adjustment:
(a) Consolidated EBITDA shall be increased with respect to such applicable fiscal quarter and any four fiscal quarter period that contains such fiscal quarter, solely for the purpose of measuring the Financial Performance Covenant and not for any other purpose under this Agreement, by in an amount equal necessary to the Cure Amount;
(b) if, after giving effect to the foregoing pro forma adjustment (without giving effect to cure any portion Event of the Cure Amount on the balance sheet of the Borrower and its Restricted Subsidiaries with Default in respect to such fiscal quarter only but with giving pro forma effect to any portion of the Cure Amount applied to any repayment of any Indebtedness)Financial Covenant, the Borrower and its Restricted Subsidiaries shall then be in compliance with the requirements of the Financial Performance Covenants, the Borrower and its Restricted Subsidiaries shall such covenant will be deemed to have satisfied the requirements of the Financial Performance Covenant and complied with as of the end of the relevant date of determination fiscal quarter with the same effect as though there had been no failure to comply therewith at with such datecovenant and any Event of Default under such covenant (and any other Default as a result thereof) will be deemed not to have occurred for purposes of the Loan Documents, and (B) from and after the applicable breach or default of date that the Financial Performance Covenant that had occurred shall be deemed cured for the purposes of this Agreement; and
(c) Notwithstanding anything herein Borrower delivers a written notice to the contraryAdministrative Agent that it intends to exercise its cure right under this Section 7.02 (a “Notice of Intent to Cure”) neither the Administrative Agent nor any Lender may exercise any rights or remedies under Section 7.01 (or under any other Loan Document) with respect to the quarter for which a Notice of Intent to Cure has been provided (and any other Default as a result thereof), but the Borrower shall not be permitted to borrow Revolving Loans or Swing Line Loans or make any request for an L/C Credit Extension, until and unless the Cure Expiration Date has occurred without the Designated Equity Contribution having been made.
(i) in In each period of four consecutive fiscal quarter period of the Borrower quarters, there shall be at least two fiscal quarters in which the Cure Right no Designated Equity Contribution is not exercisedmade, (ii) no more than five Designated Equity Contributions may be made in the aggregate during the term of this Agreement, the Cure Right shall not be exercised more than five times, (iii) the Cure Amount amount of any Designated Equity Contribution shall be no greater more than the amount required for purposes of complying with the Financial Performance Covenant and any amounts in excess thereof shall not be deemed to be a Cure Amount and (iv) the Lenders shall not be required to make a Loan or issue, amend, renew or extend any Letter of Credit unless and until the Borrower has received the Cure Amount required to cause the Borrower to be in Pro Forma Compliance with the Financial Covenants for any applicable period, (iv) there shall be no pro forma reduction in Indebtedness with the proceeds of any Designated Equity Contribution for determining compliance with the Financial Covenants for the fiscal quarter with respect to which such Designated Equity Contribution was made; provided that to the extent such proceeds are actually applied to prepay Indebtedness, such reduction may be credited in any subsequent fiscal quarter and (v) other than as set forth in the proviso to clause (iv) above, the foregoing may not be relied on for purposes of calculating any financial ratios other than compliance with the Financial Covenants and shall not result in any adjustment to any “baskets” or other amounts other than the amount of Consolidated EBITDA referred to in clause (a) above.
(c) Notwithstanding anything to the contrary set forth in this Agreement, if a Designated Equity Contribution is made, the Borrower and its Restricted Subsidiaries will be prohibited from making any Restricted Payments pursuant to be Section 6.05(i) or make any Investment in an Unrestricted Subsidiary until the Borrower is in compliance with the Financial Performance Covenants. Notwithstanding any other provision in this Agreement to the contrary, the Cure Amount received pursuant to any exercise Covenants as of the Cure Right shall be disregarded for purposes last day of determining a Test Period following the Available Amount, the Available making of such Designated Equity Amount, any financial ratio-based conditions or tests, pricing or any available basket under Article VI of this AgreementContribution (without giving effect to such Designated Equity Contribution).
Appears in 3 contracts
Samples: Credit Agreement (Tradeweb Markets Inc.), Credit Agreement (Tradeweb Markets Inc.), Credit Agreement (Tradeweb Markets Inc.)
Right to Cure. (a) Notwithstanding anything to the contrary contained in Section 7.01, in the event that the Borrower and its the Restricted Subsidiaries fail to comply with the requirements of the Financial Performance Covenant as of the last day of any fiscal quarter of the BorrowerFinancial Performance Covenant Test Period, then at any time after the beginning of such fiscal quarter until the expiration of the 10th Business Day following day subsequent to the earlier of (i) the date on which a Compliance Certificate with respect to such fiscal quarter (or the fiscal year ended on the last day of such fiscal quarter) is delivered in accordance with Section 5.01(d) and (ii) the date on which the financial statements with respect to such fiscal quarter (or the fiscal year ended on the last day of such fiscal quarter) are required to be delivered pursuant to Section 5.01(a) or Section 5.01(b(b) (the “Cure Deadline”), the Borrower or any Parent Entity thereof as applicable, Holdings shall have the right to issue common Qualified Equity Interests or other Equity Interests (provided such other Equity Interests are reasonably satisfactory to the Administrative Agent) for cash or otherwise receive cash contributions to the capital of Holdings as cash common equity or other Qualified Equity Interests (which Holdings shall contribute through its Subsidiaries of which the Borrower is a Subsidiary to the Borrower as cash common Equity Interests or other Equity Interests (provided such other Equity Interests are reasonably satisfactory to the Administrative Agentequity) (collectively, the “Cure Right”), and upon the receipt by the Borrower of the Net Proceeds of such issuance that are (which Net Proceeds may not otherwise applied be included in the calculation of the Cumulative Credit) (the “Cure Amount”) pursuant to the exercise by the Borrower Holdings of such Cure Right such Financial Performance Covenant shall be recalculated giving effect to the following pro forma adjustment:
(ai) Consolidated EBITDA shall be increased with respect to such applicable fiscal quarter and any four fiscal quarter period that contains such fiscal quarter, solely for the purpose of measuring the Financial Performance Covenant and not for any other purpose under this Agreement, by an amount equal to the Cure Amount;; and
(bii) if, after giving effect to the foregoing pro forma adjustment (without giving effect to any repayment of any Indebtedness with any portion of the Cure Amount or any portion of the Cure Amount on the balance sheet of the Borrower and its Restricted Subsidiaries Subsidiaries, in each case, with respect to such fiscal quarter only but with giving pro forma effect to any portion of the Cure Amount applied to any repayment of any Indebtednessonly), the Borrower and its Restricted Subsidiaries shall then be in compliance with the requirements of the Financial Performance CovenantsCovenant, the Borrower and its Restricted Subsidiaries shall be deemed to have satisfied the requirements of the Financial Performance Covenant as of the relevant date of determination with the same effect as though there had been no failure to comply therewith at such date, and the applicable breach or default of the Financial Performance Covenant that had occurred shall be deemed cured for the purposes of this Agreement; andprovided that the Borrower shall have notified the Administrative Agent of the exercise of such Cure Right (a “Cure Notice”) within five (5) Business Days of the issuance of the relevant Qualified Equity Interests for cash or the receipt of the cash contributions by Holdings.
(ciii) Notwithstanding anything to the contrary, (i) neither the Administrative Agent nor any Lender shall exercise any right to accelerate the Loans or terminate the Revolving Commitments, and none of the Administrative Agent, nor any Lender or Secured Party shall exercise any right to foreclose on or take possession of the Collateral or any other right or remedy under the Loan Documents solely on the basis of the relevant Event of Default under Section 7.01(d); and (ii) no Revolving Lender, Swingline Lender or Issuing Bank shall be required to make any Loans or issue any Letter of Credit from and after such time as the Administrative Agent has received the Cure Notice unless and until the Cure Amount is actually received on or prior to the Cure Deadline;
(b) Notwithstanding anything herein to the contrary, (i) in each four consecutive fiscal quarter period of the Borrower there shall be at least two fiscal quarters in which the Cure Right is not exercised, (ii) during the term life of this Agreement, the Cure Right shall not be exercised more than five times, four times and (iii) for purposes of this Section 7.02, the Cure Amount shall be no greater than the amount required for purposes of complying with the Financial Performance Covenant with respect to the applicable fiscal quarter and any amounts in excess thereof shall not be deemed to be a Cure Amount and (iv) the Lenders shall not be required to make a Loan or issue, amend, renew or extend any Letter of Credit unless and until the Borrower has received the Cure Amount required to cause the Borrower and the Restricted Subsidiaries to be in compliance with the Financial Performance CovenantsAmount. Notwithstanding any other provision in this Agreement to the contrary, the Cure Amount received pursuant to any exercise of the Cure Right shall be disregarded for purposes of determining the Available Amount, the Available Equity Amount, any financial ratio-ratio based conditions or tests, pricing or any available basket under Article VI 6 of this Agreement.
Appears in 3 contracts
Samples: Credit Agreement (Virtu Financial, Inc.), Credit Agreement (Virtu Financial, Inc.), Credit Agreement (Virtu Financial, Inc.)
Right to Cure. Notwithstanding anything to the contrary contained in Section 7.01, in In the event that Sublessor defaults in the Borrower and its Restricted Subsidiaries fail to comply with the requirements of the Financial Performance Covenant as of the last day performance or observance of any fiscal quarter of Sublessor's obligations under the BorrowerMaster Lease, at Master Lessor agrees that Sublessee shall have the right, but not the obligation, on behalf of Sublessor to cure any default, of which Sublessee has notice, within the time after available to Sublessor to cure any such default under the beginning of Master Lease, and Master Lessor shall accept such fiscal quarter until the expiration of the 10th Business Day following the date on which the financial statements with respect to such fiscal quarter (or the fiscal year ended on the last day of such fiscal quarter) are required to be delivered pursuant to Section 5.01(a) or Section 5.01(b)cure from Sublessee. In addition, the Borrower or any Parent Entity thereof Sublessee shall have the right to issue common Equity Interests pay directly to Master Lessor all rent and other sums owing by Sublessee to Sublessor under the Sublease which are also owed by Sublessor to Master Lessor under the Master Lease if (i) Sublessee reasonably believes that Sublessor has failed to make any payment required to be made by Sublessor to Master Lessor under the Master Lease and Sublessor fails to provide adequate proof of payment within two (2) business days after Sublessee's written demand requesting such proof, or other Equity Interests (provided such other Equity Interests are ii) Sublessee reasonably believes that Sublessor will fail to make any payment required to be made by Sublessor to Master Lessor under the Master Lease and Sublessor fails to provide assurance of future performance in form reasonably satisfactory to the Administrative AgentSublessee within two (2) for cash or otherwise receive cash contributions business days after Sublessee's written demand requesting such assurance. Any sums paid directly by Sublessee to the capital of the Borrower as cash common Equity Interests or other Equity Interests (provided such other Equity Interests are reasonably satisfactory to the Administrative Agent) (collectively, the “Cure Right”), and upon the receipt by the Borrower of the Net Proceeds of such issuance that are not otherwise applied (the “Cure Amount”) pursuant to the exercise by the Borrower of such Cure Right such Financial Performance Covenant Master Lessor in accordance with this paragraph shall be recalculated giving effect credited toward the amounts payable by Sublessee to Sublessor under the following pro forma adjustment:
(a) Consolidated EBITDA Sublease. In the event Sublessee tenders payment directly to Master Lessor in accordance with this paragraph and Master Lessor refuses to accept such payment, Sublessee shall be increased have the right to deposit such funds in an account with respect to such applicable fiscal quarter and any four fiscal quarter period that contains such fiscal quarter, solely a national bank for the purpose benefit of measuring the Financial Performance Covenant Master Lessor and not for any other purpose under this Agreement, by an amount equal to the Cure Amount;
(b) if, after giving effect to the foregoing pro forma adjustment (without giving effect to any portion of the Cure Amount on the balance sheet of the Borrower and its Restricted Subsidiaries with respect to such fiscal quarter only but with giving pro forma effect to any portion of the Cure Amount applied to any repayment of any Indebtedness), the Borrower and its Restricted Subsidiaries shall then be in compliance with the requirements of the Financial Performance Covenants, the Borrower and its Restricted Subsidiaries shall be deemed to have satisfied the requirements of the Financial Performance Covenant as of the relevant date of determination with the same effect as though there had been no failure to comply therewith at such dateSublessor, and the applicable breach or default deposit of the Financial Performance Covenant that had occurred such funds in such an account shall be deemed cured for the purposes of discharge Sublessee's obligation under this Agreement; and
(c) Notwithstanding anything herein to the contrary, (i) in each four consecutive fiscal quarter period of the Borrower there shall be at least two fiscal quarters in which the Cure Right is not exercised, (ii) during the term of this Agreement, the Cure Right shall not be exercised more than five times, (iii) the Cure Amount shall be no greater than the amount required for purposes of complying with the Financial Performance Covenant and any amounts in excess thereof shall not be deemed to be a Cure Amount and (iv) the Lenders shall not be required Sublease to make a Loan or issue, amend, renew or extend any Letter of Credit unless and until the Borrower has received the Cure Amount required to cause the Borrower and the Restricted Subsidiaries to be payment in compliance with the Financial Performance Covenants. Notwithstanding any other provision in this Agreement to the contrary, the Cure Amount received pursuant to any exercise of the Cure Right shall be disregarded for purposes of determining the Available Amount, the Available Equity Amount, any financial ratio-based conditions or tests, pricing or any available basket under Article VI of this Agreementquestion.
Appears in 3 contracts
Samples: Sublease Agreement (Vari L Co Inc), Sublease (Vari L Co Inc), Sublease (Vari L Co Inc)
Right to Cure. Notwithstanding anything to the contrary contained in Section 7.01, in the event that the Borrower and its Restricted Subsidiaries fail to comply with the requirements of the Financial Performance Covenant as of the last day of any fiscal quarter of the Borrower, at any time after the beginning of such fiscal quarter until the expiration of the 10th 15th Business Day following the date on which the financial statements with respect to such fiscal quarter (or the fiscal year ended on the last day of such fiscal quarter) are required to be delivered pursuant to Section 5.01(a) or Section 5.01(b), the Borrower as applicable, Holdings or any Parent Entity thereof shall have the right to issue common Equity Interests or other Equity Interests (provided such other Equity Interests are reasonably satisfactory to the Administrative Agent) for cash or otherwise receive cash contributions to the capital of Holdings or any Parent Entity as cash common equity or other Equity Interests in a form reasonably acceptable to the Administrative Agent (which Holdings or such Parent Entity shall contribute through its Subsidiaries of which the Borrower is a Subsidiary to the Borrower as cash common Equity Interests or other Equity Interests (provided such other Equity Interests are reasonably satisfactory to the Administrative Agentequity) (collectively, the “Cure Right”), and upon the receipt by the Borrower of the Net Proceeds of such issuance that are not otherwise applied Not Otherwise Applied (the “Cure Amount”) pursuant to the exercise by the Borrower of such Cure Right such the Financial Performance Covenant shall be recalculated giving effect to the following pro forma adjustment:
(a) Consolidated EBITDA shall be increased with respect to such applicable fiscal quarter and any four fiscal quarter period that contains such fiscal quarter, solely for the purpose of measuring the Financial Performance Covenant and not for any other purpose under this Agreement, by an amount equal to the Cure Amount;
(b) if, after giving effect to the foregoing pro forma adjustment (without giving effect to any portion of the Cure Amount on the balance sheet of the Borrower and its Restricted Subsidiaries with respect to such fiscal quarter only but with giving pro forma effect to any portion of the Cure Amount applied to any repayment of any Indebtedness), the Borrower and its Restricted Subsidiaries shall then be in compliance with the requirements of the Financial Performance CovenantsCovenant, the Borrower and its Restricted Subsidiaries shall be deemed to have satisfied the requirements of the Financial Performance Covenant as of the relevant date of determination with the same effect as though there had been no failure to comply therewith at such date, and the applicable breach or default of the Financial Performance Covenant that had occurred shall be deemed cured for the purposes of this Agreement; and
(c) Notwithstanding anything herein to the contrary, (i) in each four consecutive fiscal quarter period of the Borrower there shall be at least two fiscal quarters in which the Cure Right is not exercised, (ii) during the term of this Agreement, the Cure Right shall not be exercised more than five times, (iii) the Cure Amount shall be no greater than the amount required for purposes of complying with the Financial Performance Covenant and any amounts in excess thereof shall not be deemed to be a Cure Amount, (iv) there shall be no pro forma reduction in Indebtedness (by netting or otherwise) with the proceeds of the Cure Amount for determining compliance with the Financial Performance Covenant for the fiscal quarter for which such Cure Amount is deemed applied, except to the extent that such proceeds are actually applied to repay Indebtedness and (ivv) the Lenders shall not be required to make a Loan or issue, amend, renew or extend any Letter of Credit unless and until the Borrower has received the Cure Amount required to cause the Borrower and the Restricted Subsidiaries to be in compliance with the Financial Performance CovenantsCovenant. Notwithstanding any other provision in this Agreement to the contrary, the Cure Amount received pursuant to any exercise of the Cure Right shall be disregarded for purposes of determining the Available Amount, the Available Equity Amount, any financial ratio-based conditions or tests, pricing or any available basket under Article VI of this Agreement.
Appears in 3 contracts
Samples: Credit Agreement (EverCommerce Inc.), Credit Agreement (EverCommerce Inc.), Credit Agreement (EverCommerce Inc.)
Right to Cure. Notwithstanding anything to the contrary contained in Section 7.01, in the event that Holdings and the Borrower and its Restricted Subsidiaries fail to comply with the requirements of the Financial Performance Covenant as of the last day of any fiscal quarter of the BorrowerHoldings, at any time after the beginning of such fiscal quarter until the expiration of the 10th Business Day following (the “Cure Expiration Date”) subsequent to the earlier of (i) the date on which a Compliance Certificate with respect to such fiscal quarter (or the fiscal year ended on the last day of such fiscal quarter) is delivered in accordance with Section 5.01(d) and (ii) the date on which the financial statements with respect to such fiscal quarter (or the fiscal year ended on the last day of such fiscal quarter) are required to be delivered pursuant to Section 5.01(a) or Section 5.01(b), the Borrower or any Parent Entity thereof as applicable, Holdings shall have the right to issue common Qualified Equity Interests or other Equity Interests (provided such other Equity Interests are reasonably satisfactory to the Administrative Agent) for cash or otherwise receive cash contributions to the capital of the Borrower Holdings as cash common equity or other Qualified Equity Interests or other Equity Interests (provided such other Equity Interests are reasonably satisfactory to the Administrative Agent) (collectively, the “Cure Right”), and upon the receipt by the Borrower Holdings of the Net Proceeds of such issuance that are not otherwise applied Not Otherwise Applied (the “Cure Amount”) pursuant to the exercise by the Borrower Holdings of such Cure Right such the Financial Performance Covenant shall be recalculated giving effect to the following pro forma adjustment:
(a) Consolidated EBITDA shall be increased with respect to such applicable fiscal quarter and any four fiscal quarter period that contains such fiscal quarter, solely for the purpose of measuring the Financial Performance Covenant and not for any other purpose under this Agreement, by an amount equal to the Cure Amount;
(b) if, after giving effect to the foregoing pro forma adjustment (without giving effect to any portion of the Cure Amount on the balance sheet of the Borrower Holdings and its Restricted Subsidiaries with respect to such fiscal quarter only but with giving pro forma effect to any portion of the Cure Amount actually applied to any repayment of any Indebtedness), the Borrower Holdings and its Restricted Subsidiaries shall then be in compliance with the requirements of the Financial Performance CovenantsCovenant, the Borrower Holdings and its Restricted Subsidiaries shall be deemed to have satisfied the requirements of the Financial Performance Covenant as of the relevant date of determination with the same effect as though there had been no failure to comply therewith at such date, and the applicable breach or default of the Financial Performance Covenant that had occurred shall be deemed cured for the purposes of this Agreement; and
(c) Notwithstanding notwithstanding anything herein to the contrary, (i) in each four consecutive fiscal quarter period of the Borrower Holdings there shall be at least two fiscal quarters in which the Cure Right is not exercised, (ii) during the term of this Agreement, the Cure Right shall not be exercised more than five times, (iii) for purposes of this Section 7.02, the Cure Amount shall be no greater than the amount required for purposes of complying with the both Financial Performance Covenant and any amounts in excess thereof shall not be deemed to be a Cure Amount and (iv) there shall be no pro forma reduction in Indebtedness with the Lenders shall not be required to make a Loan or issue, amend, renew or extend any Letter proceeds of Credit unless and until the Borrower has received exercise of the Cure Amount required to cause the Borrower and the Restricted Subsidiaries to be in Right for determining compliance with the Financial Performance CovenantsCovenant for the fiscal quarter in respect of which such Cure Right is exercised except as a result of a prepayment of Indebtedness with the proceeds of the exercise of the Cure Right actually applied to any repayment of Indebtedness. Notwithstanding any other provision in this Agreement to the contrary, the Cure Amount received pursuant to any exercise of the Cure Right shall be disregarded for purposes of determining the Available Amount, the Available Equity Amount, any financial ratio-based conditions or testsconditions, pricing or any available basket under Article VI of this AgreementAgreement and there shall not have been a breach of any covenant under Article VI of this Agreement by reason of having no longer included such Cure Amount in any basket during the relevant period.
Appears in 3 contracts
Samples: Incremental Assumption and Amendment (European Wax Center, Inc.), Credit Agreement (European Wax Center, Inc.), Incremental Assumption and Amendment (European Wax Center, Inc.)
Right to Cure. (a) Notwithstanding anything to the contrary contained in Section 7.01, in the event that the Borrower and its the Restricted Subsidiaries reasonably expect to fail (or have failed) to comply with the requirements of the Financial Performance Covenant as of the last day of any fiscal quarter of the BorrowerTest Period, at any time after the beginning of such the last fiscal quarter of such Test Period until the expiration of the 10th 15th Business Day following subsequent to the date on which the financial statements with respect to such fiscal quarter (or the fiscal year Fiscal Year ended on the last day of such fiscal quarter) are required to be delivered pursuant to Section 5.01(a) or Section 5.01(b(b), as applicable (the “Cure Deadline”), the Borrower (or any Parent Entity thereof thereof) shall have the right to issue common Equity Interests or other Equity Interests (provided such other Equity Interests are reasonably satisfactory to the Administrative Agent) Permitted Cure Securities for cash or otherwise receive cash contributions to (or in the case of any Parent Entity of the Borrower receive Equity Interests in the Borrower for its capital contributions to) the capital of the Borrower as cash common Equity Interests or other Equity Interests (provided such other Equity Interests are reasonably satisfactory to the Administrative Agent) equity (collectively, the “Cure Right”), and upon the receipt by the Borrower of the Net Cash Proceeds of such issuance that are not otherwise applied or contribution (the “Cure Amount”) pursuant to the exercise by the Borrower of such Cure Right such Right, the Financial Performance Covenant shall be recalculated giving effect to the following pro forma adjustment:
(ai) Consolidated EBITDA shall be increased with respect to such applicable fiscal quarter and any four fiscal quarter period Test Period that contains such fiscal quarter, solely for the purpose of measuring the Consolidated First Lien Leverage Ratio for purposes of the Financial Performance Covenant and and, subject to clause (c) below, not for any other purpose under this Agreement, by an amount equal to the Cure Amount (but not in excess of the Necessary Cure Amount);
(bii) if, after giving effect to the foregoing pro forma adjustment (without giving effect to any repayment of any Indebtedness with any portion of the Cure Amount or any portion of the Cure Amount on the balance sheet of the Borrower and its Restricted Subsidiaries with respect to such fiscal quarter only but with giving pro forma effect to any portion of the Cure Amount applied to any repayment of any IndebtednessSubsidiaries), the Borrower and its Restricted Subsidiaries shall then be in compliance with the requirements of the Financial Performance CovenantsCovenant, the Borrower and its Restricted Subsidiaries shall be deemed to have satisfied the requirements of the Financial Performance Covenant as of the relevant date of determination with the same effect as though there had been no failure to comply therewith at such date, and the applicable breach or default of the Financial Performance Covenant that had occurred shall be deemed cured for the purposes of this Agreement; and
(ciii) Consolidated Debt with respect to any Test Period subsequent to the Test Period for which the Cure Amount is deemed applied that includes such fiscal quarter with respect to which such Cure Amount is received by the Borrower shall be decreased solely to the extent proceeds of the Cure Amount are applied to prepay any Indebtedness (provided that any such Indebtedness so prepaid shall be a permanent repayment of such Indebtedness and termination of commitments thereunder) included in the calculation of Consolidated Debt.
(b) Notwithstanding anything herein to the contrary, ,
(i) in each four consecutive fiscal quarter period of the Borrower there shall be at least two fiscal quarters in which the Cure Right is not exercised, ,
(ii) during the term of this Agreement, the Cure Right shall not be exercised more than five times, ,
(iii) for purposes of this Section 7.02, the Cure Amount shall be no greater than the amount required for purposes of complying with the Financial Performance Covenant and any amounts in excess thereof shall not be deemed as of the end of such fiscal quarter (such amount, the “Necessary Cure Amount”); provided that if the Cure Right is exercised prior to the date financial statements are required to be a delivered for such fiscal quarter, then the Cure Amount and shall be equal to the amount reasonably determined by the Borrower in good faith that is required for purposes of complying with the Financial Covenant for such fiscal quarter (such amount, the “Expected Cure Amount”),
(iv) there shall be no pro forma or other reduction in Indebtedness (by netting or otherwise) with the proceeds of any Cure Amount for determining compliance with the Financial Covenant for the fiscal quarter in which such Cure Amount increased the Consolidated EBITDA pursuant to clause (a)(i) above, and
(v) upon receipt by the Administrative Agent of written notice, prior to the expiration of the 15th Business Day subsequent to the due date for delivery of the relevant financial statements pursuant to Section 5.01(a) or (b) (the “Anticipated Cure Deadline”) that the Borrower is considering the exercise of the Cure Right, the Lenders shall not be permitted to exercise any remedies under Section 7.01 or otherwise under the Loan Documents, including accelerating Loans held by them or to exercise remedies against the Collateral on the basis of a failure to comply with the requirements of the Financial Covenant until such failure is not cured pursuant to the exercise of the Cure Right on or prior to the Anticipated Cure Deadline (it being understood and agreed that no Revolving Lender or Issuing Bank shall be required to make a Loan or issue, amend, renew or extend any Letter of Credit unless and Extension until the Borrower has received failure to comply with the requirements of the Financial Covenant shall have been cured pursuant to the exercise of the Cure Amount required Right on or prior to cause the Borrower and the Restricted Subsidiaries to be Anticipated Cure Deadline (or waived in compliance accordance with the Financial Performance CovenantsSection 9.02)). Notwithstanding any other provision in this Agreement to the contrary, but subject to clause (c) below, the Cure Amount received pursuant to any exercise of the Cure Right shall be disregarded for purposes of determining the Available Amount, the Available Equity Amount, any financial ratio-ratio based conditions or testscondition, pricing or any available basket under Article VI of this Agreement.
(c) Notwithstanding anything herein to the contrary, to the extent that the Expected Cure Amount is (i) greater than the Necessary Cure Amount, then such difference may be used for the purposes of determining any baskets (other than any previously contributed Cure Amounts), with respect to the covenants contained in the Loan Documents, the Available Amount or the Available Equity Amount and any pricing provisions and (ii) less than the Necessary Cure Amount, then not later than the applicable Cure Deadline, the Borrower must receive the cash proceeds of Permitted Cure Securities or a cash capital contribution to the Borrower, which cash common equity proceeds received by Borrower shall be equal to the shortfall between such Expected Cure Amount and such Necessary Cure Amount.
Appears in 3 contracts
Samples: Credit Agreement (Ww International, Inc.), Credit Agreement (Ww International, Inc.), Credit Agreement (Weight Watchers International Inc)
Right to Cure. Notwithstanding anything to the contrary contained in Section 7.018.01(b), in the event that the Borrower and its Restricted Subsidiaries fail fails to comply with the requirements requirement of the Financial Performance Covenant as of the last day of any Test Period, the Borrower shall have the right, during the period beginning at the start of any fiscal quarter in which the Borrower determines that a breach of the BorrowerFinancial Covenant may occur, at any time after the beginning of such fiscal quarter until the expiration of the 10th tenth Business Day following (the “Cure Period”) after the date on which the financial statements with respect to such fiscal quarter (or the fiscal year ended on applicable Test Period in which the last day of such fiscal quarter) Financial Covenant is being measured are required to be delivered pursuant to Section 5.01(a) 6.01, to receive a direct or Section 5.01(b), indirect equity investment in cash in the Borrower or any Parent Entity thereof shall have the right to issue form of common Equity Interests Capital Stock (or other Equity Interests (provided such other Equity Interests are Qualified Capital Stock reasonably satisfactory acceptable to the Administrative Agent) for cash or otherwise receive cash contributions to the capital of the Borrower as cash common Equity Interests or other Equity Interests (provided such other Equity Interests are reasonably satisfactory to the Administrative Revolver Agent) (collectively, the “Cure Right”), and upon the receipt by the Borrower of net cash proceeds pursuant to the Net Proceeds exercise of such issuance that are not otherwise applied the Cure Right (the “Cure Amount”) pursuant to ), the exercise by the Borrower of such Cure Right such Financial Performance Covenant shall be recalculated recalculated, giving effect to the following a pro forma adjustment:
increase to Consolidated EBITDA for such Test Period in an amount equal to such Cure Amount; provided, that (ax) such pro forma adjustment to Consolidated EBITDA shall be increased with respect to such applicable fiscal quarter and any four fiscal quarter period that contains such fiscal quarter, given solely for the purpose of measuring determining the existence of a Default or an Event of Default under the Financial Performance Covenant with respect to any Test Period that includes the fiscal quarter for which such Cure Right was exercised and not for any other purpose under this Agreementany Loan Document (including for purposes of determining pricing, by an mandatory prepayments and the availability or amount equal permitted pursuant to any covenant under Article VII) for the quarter with respect to which such Cure Amount;Right was exercised and (y) there shall be no reduction in Indebtedness in connection with any Cure Amounts for determining compliance with Section 7.07 and no Cure Amounts will reduce (or count towards) the Consolidated First Lien Secured Leverage Ratio or the Consolidated Total Leverage Ratio for purposes of any calculation thereof for the fiscal quarter with respect to which such Cure Right was exercised.
(b) ifIf, after giving effect to the foregoing pro forma adjustment (without giving effect to any portion exercise of the Cure Amount on Right and the balance sheet of the Borrower and its Restricted Subsidiaries with respect recalculations pursuant to such fiscal quarter only but with giving pro forma effect to any portion of the Cure Amount applied to any repayment of any Indebtedness)clause (a) above, the Borrower and its Restricted Subsidiaries shall then be in compliance with the requirements of the Financial Performance CovenantsCovenant during such Test Period (including for purposes of Section 4.02), the Borrower and its Restricted Subsidiaries shall be deemed to have satisfied the requirements of the Financial Performance Covenant as of the relevant date of determination with the same effect as though there had been no failure to comply therewith at such date, and the applicable breach Default or default Event of the Financial Performance Covenant Default under Section 8.01 that had occurred shall be deemed cured for cured; provided, that (i) the purposes Cure Right may be exercised on no more than five (5) occasions, (ii) in each four consecutive fiscal quarter period, there shall be no more than two fiscal quarters in respect of this Agreement; andwhich the Cure Right is exercised, and (iii) with respect to any exercise of the Cure Right, the Cure Amount shall not be given effect in an amount greater than the amount required to cause the Borrower to be in compliance with the Financial Covenant.
(c) Notwithstanding anything herein to the contrary, (i) in each four consecutive fiscal quarter period prior to the expiration of the Borrower there shall be at least two fiscal quarters in which Cure Period (x) the Cure Right is not exercised, (ii) during the term of this Agreement, the Cure Right Lenders shall not be exercised more than five times, permitted to exercise any rights then available as a result of an Event of Default under Article VII on the basis of a breach of the Financial Covenant so as to enable the Borrower to consummate its Cure Rights as permitted under this Section 8.05(c) and (iiiy) the Cure Amount shall be no greater than the amount required for purposes of complying with the Financial Performance Covenant and any amounts in excess thereof shall not be deemed to be a Cure Amount and (iv) the Revolving Credit Lenders shall not be required to make a Loan or issue, amend, renew or extend any Letter of Credit Extension unless and until the Borrower has received the Cure Amount required to cause the Borrower and the Restricted Subsidiaries to be in compliance with the Financial Performance Covenants. Notwithstanding any other provision in this Agreement to the contrary, the Cure Amount received pursuant to any exercise of the Cure Right shall be disregarded for purposes of determining the Available Amount, the Available Equity Amount, any financial ratio-based conditions or tests, pricing or any available basket under Article VI of this AgreementCovenant.
Appears in 3 contracts
Samples: Credit Agreement (Frontier Communications Parent, Inc.), Credit Agreement (Frontier Communications Parent, Inc.), Credit Agreement (Frontier Communications Corp)
Right to Cure. Notwithstanding anything (a) Solely for purposes of determining compliance with the Financial Covenant, on or prior to the contrary contained in Section 7.01, in the event day that the Borrower and its Restricted Subsidiaries fail to comply with the requirements of the Financial Performance Covenant as of the last day of any fiscal quarter of the Borrower, at any time is ten (10) Business Days after the beginning of such fiscal quarter until the expiration of the 10th Business Day following the date day on which the financial statements with respect to such fiscal quarter (or the fiscal year ended on the last day of such fiscal quarter) are required to be delivered pursuant to Section 5.01(a) or Section 5.01(b8.1 for any fiscal quarter (the “Equity Cure Period”), the Borrower Sponsors, any of their Affiliates or any Parent Entity thereof other Persons shall have the right to issue make an equity investment (which equity shall be common equity or Qualified Equity Interests or other Equity Interests (provided such other Equity Interests are reasonably satisfactory Interests) in Holdings in cash, which Holdings shall subsequently contribute to U.S. Holdings, and U.S. Holdings shall contribute to the Administrative Agent) for cash Borrower on or otherwise receive cash contributions prior to the capital expiration of the Borrower as cash common Equity Interests or other Equity Interests (provided such other Equity Interests are reasonably satisfactory to the Administrative Agent) (collectively, the “Cure Right”), and upon the receipt by the Borrower of the Net Proceeds of such issuance that are not otherwise applied (the “Cure Amount”) pursuant to the exercise by the Borrower of such Cure Right such Financial Performance Covenant shall be recalculated giving effect to the following pro forma adjustment:
(a) Consolidated EBITDA shall be increased with respect to such applicable fiscal quarter and any four fiscal quarter period that contains Period for such fiscal quarter, solely and such cash will, if so designated by the Borrower, be included in the calculation of Consolidated EBITDA for the purpose purposes of measuring determining compliance with the Financial Performance Covenant at the end of such fiscal quarter and not for the subsequent three fiscal quarters (any other purpose under this Agreementsuch equity contribution so included in the calculation of Consolidated EBITDA, by an amount equal to the Cure Amount;
a “Specified Equity Contribution”); provided that (a) there shall be no more than two (2) quarters in each four (4) consecutive fiscal quarter period in respect of which a Specified Equity Contribution is made, (b) if, after giving effect the amount of any Specified Equity Contribution shall be no more than the amount required to the foregoing pro forma adjustment (without giving effect to any portion of the Cure Amount on the balance sheet of cause the Borrower and its Restricted Subsidiaries with respect to such fiscal quarter only but with giving pro forma effect to any portion of the Cure Amount applied to any repayment of any Indebtedness), the Borrower and its Restricted Subsidiaries shall then be in compliance with the requirements of the Financial Performance CovenantsCovenant on a Pro Forma Basis, the Borrower and its Restricted Subsidiaries shall be deemed to have satisfied the requirements of the Financial Performance Covenant as of the relevant date of determination with the same effect as though there had been no failure to comply therewith at such date, and the applicable breach or default of the Financial Performance Covenant that had occurred shall be deemed cured for the purposes of this Agreement; and
(c) Notwithstanding anything herein to the contrary, no more than five (i5) in each four consecutive fiscal quarter period of the Borrower there Specified Equity Contributions shall be at least two fiscal quarters in which the Cure Right is not exercised, (ii) made during the term of this Agreement, the Cure Right shall not be exercised more than five times, (iiid) the Cure Amount shall be no greater than the amount required for purposes of complying with the Financial Performance Covenant and any amounts in excess thereof shall not be deemed to be a Cure Amount and (iv) the Lenders shall not be required to make a Loan or issue, amend, renew or extend any Letter of Credit unless and until the Borrower has received the Cure Amount required to cause the Borrower and the Restricted Subsidiaries to be in compliance with the Financial Performance Covenants. Notwithstanding any other provision in this Agreement to the contrary, the Cure Amount received pursuant to any exercise of the Cure Right all Specified Equity Contributions shall be disregarded for purposes of any financial ratio determination under this Agreement other than for determining compliance with the Financial Covenant (and will not be credited as an addition to the Available AmountAmount or Excluded Contribution) and (e) there shall be no reduction in Indebtedness with the proceeds of any Specified Equity Contribution for determining compliance with the Financial Covenant for the fiscal quarter for which such Specified Equity Contribution was made.
(b) Upon receipt by the Administrative Agent of a Notice of Intent to Cure prior to the last day of the Equity Cure Period, neither the Available Equity Amount, Administrative Agent nor any financial ratio-based conditions Lender shall exercise any rights or tests, pricing remedies under this Section 11 (or any rights and remedies under any other Loan Document that are available basket under Article VI during the continuance of this Agreementan Event of Default) on the basis of any failure to comply with the Financial Covenant until the expiration of the Equity Cure Period.
Appears in 3 contracts
Samples: Credit and Guaranty Agreement (Ancestry.com LLC), Credit and Guaranty Agreement (Ancestry.com LLC), Credit and Guaranty Agreement (Ancestry.com LLC)
Right to Cure. Notwithstanding anything to the contrary contained in Section 7.01, If Project Company defaults in the performance of any of its obligations under the Agreement, or upon the occurrence or non-occurrence of any event that or condition under the Borrower and its Restricted Subsidiaries fail to comply Agreement which would immediately or with the requirements of the Financial Performance Covenant as of the last day passage of any fiscal quarter applicable grace period or the giving of notice, or both, enable SCE to terminate or suspend its performance under the BorrowerAgreement (an “Agreement Default”), at any time after SCE will not terminate or suspend its performance under the beginning Agreement until it first gives written notice of such fiscal quarter until Agreement Default to Collateral Agent and affords Collateral Agent the right to cure such Agreement Default within the applicable cure period under the Agreement, which cure period shall run concurrently with that afforded Project Company under the Agreement. In addition, if Collateral Agent gives SCE written notice prior to the expiration of the 10th applicable cure period under the Agreement of Collateral Agent’s intention to cure such Agreement Default (which notice shall include a reasonable description of the time during which it anticipates to cure such Agreement Default) and is diligently proceeding to cure such Agreement Default, notwithstanding the applicable cure period under the Agreement, Collateral Agent shall have a period of sixty (60) days (or, if such Agreement Default is for failure by the Project Company to pay an amount to SCE which is due and payable under the Agreement other than to provide Agreement Collateral, thirty (30) days, or, if such Agreement Default is for failure by Project Company to provide Agreement Collateral, [__ (__)] Business Day following Days) from the date on which Collateral Agent’s receipt of the financial statements with respect to such fiscal quarter (or the fiscal year ended on the last day notice of such fiscal quarter) are required Agreement Default from SCE to be delivered pursuant to Section 5.01(a) or Section 5.01(b)cure such Agreement Default; provided, the Borrower or any Parent Entity thereof shall have the right to issue common Equity Interests or other Equity Interests (provided such other Equity Interests are reasonably satisfactory to the Administrative Agent) for cash or otherwise receive cash contributions to the capital of the Borrower as cash common Equity Interests or other Equity Interests (provided such other Equity Interests are reasonably satisfactory to the Administrative Agent) (collectivelyhowever, the “Cure Right”), and upon the receipt by the Borrower of the Net Proceeds of such issuance that are not otherwise applied (the “Cure Amount”) pursuant to the exercise by the Borrower of such Cure Right such Financial Performance Covenant shall be recalculated giving effect to the following pro forma adjustment:
(a) Consolidated EBITDA shall if possession of the Project is necessary to cure any such non-monetary Agreement Default and Collateral Agent has commenced foreclosure proceedings within sixty (60) days after notice of the Agreement Default and is diligently pursuing such foreclosure proceedings, Collateral Agent will be increased with respect allowed a reasonable time, not to exceed one hundred eighty (180) days after the notice of the Agreement Default, to complete such applicable fiscal quarter proceedings and any four fiscal quarter period that contains cure such fiscal quarterAgreement Default, solely for the purpose of measuring the Financial Performance Covenant and not for any other purpose under this Agreement, by an amount equal to the Cure Amount;
(b) ifif Collateral Agent is prohibited from curing any such Agreement Default by any process, after giving effect to the foregoing pro forma adjustment (without giving effect to stay or injunction issued by any portion of the Cure Amount on the balance sheet of the Borrower and its Restricted Subsidiaries with respect to such fiscal quarter only but with giving pro forma effect to any portion of the Cure Amount applied to any repayment of any Indebtedness), the Borrower and its Restricted Subsidiaries shall then be in compliance with the requirements of the Financial Performance Covenants, the Borrower and its Restricted Subsidiaries shall be deemed to have satisfied the requirements of the Financial Performance Covenant as of the relevant date of determination with the same effect as though there had been no failure to comply therewith at such date, and the applicable breach Governmental Authority or default of the Financial Performance Covenant that had occurred shall be deemed cured for the purposes of this Agreement; and
(c) Notwithstanding anything herein to the contrary, (i) in each four consecutive fiscal quarter period of the Borrower there shall be at least two fiscal quarters in which the Cure Right is not exercised, (ii) during the term of this Agreement, the Cure Right shall not be exercised more than five times, (iii) the Cure Amount shall be no greater than the amount required for purposes of complying with the Financial Performance Covenant and any amounts in excess thereof shall not be deemed to be a Cure Amount and (iv) the Lenders shall not be required to make a Loan or issue, amend, renew or extend any Letter of Credit unless and until the Borrower has received the Cure Amount required to cause the Borrower and the Restricted Subsidiaries to be in compliance with the Financial Performance Covenants. Notwithstanding any other provision in this Agreement to the contrary, the Cure Amount received pursuant to any exercise of bankruptcy or insolvency proceeding or other similar proceeding involving Project Company, then the Cure Right time periods specified herein for curing an Agreement Default shall be disregarded extended for purposes the period of determining such prohibition, so long as Collateral Agent has diligently pursued removal of such process, stay or injunction. Collateral Agent shall provide SCE with reports concerning the Available Amount, the Available Equity Amount, any financial ratio-based conditions or tests, pricing or any available basket under Article VI status of this Agreementefforts to cure an Agreement Default upon SCE’s reasonable request.
Appears in 3 contracts
Samples: Renewable Power Purchase Agreement, Renewable Power Purchase Agreement, Renewable Power Purchase Agreement
Right to Cure. (a) Notwithstanding anything to the contrary contained in Section 7.018.01(b), in the event that the Borrower and its Restricted Subsidiaries fail fails to comply with the requirements of the Financial Performance Covenant as of Covenants, from the last day of any fiscal quarter of the Borrower, at any time after the beginning of such fiscal quarter Test Period until the expiration of the 10th fifteenth Business Day following after the date on which the financial statements with respect to the Test Period in which such fiscal quarter (or the fiscal year ended on the last day of such fiscal quarter) covenant is being measured are required to be delivered pursuant to Section 5.01(a) or Section 5.01(b)6.01, the Borrower or may designate any Parent Entity thereof shall have direct equity investment in the right to issue Borrower in cash in the form of common Equity Interests (or other Qualified Equity Interests (provided such other Equity Interests are of the Borrower reasonably satisfactory acceptable to the Administrative Agent) for cash or otherwise receive cash contributions to made during the capital Test Period until the end of the Borrower such time period as cash common Equity Interests or other Equity Interests a Cure Amount (provided such other Equity Interests are reasonably satisfactory to the Administrative Agent) (collectively, the “Cure Right”), and upon the receipt by the Borrower of net cash proceeds corresponding to the Net Proceeds exercise of such issuance that are not otherwise applied the Cure Right (the “Cure Amount”) pursuant to ), the exercise by the Borrower of such Cure Right such Financial Performance Covenant Covenants shall be recalculated recalculated, giving effect to the following a pro forma adjustment:
increase to Consolidated EBITDA for such Test Period in an amount equal to such Cure Amount; provided that (ax) such pro forma adjustment to Consolidated EBITDA shall be increased with respect to such applicable fiscal quarter and any four fiscal quarter period that contains such fiscal quarter, given solely for the purpose of measuring determining the existence of a Default or an Event of Default under the Financial Performance Covenant Covenants with respect to any Test Period that includes the fiscal quarter for which such Cure Right was exercised and not for any other purpose under this Agreementany Loan Document (including, by an without limitation, for purposes of determining pricing, mandatory prepayments and the availability or amount equal permitted pursuant to any covenant under Article VII) for the quarter with respect to which such Cure Right was exercised and (y) there shall be no reduction in Indebtedness in connection with any Cure Amounts for determining compliance with Section 7.09 and no Cure Amounts will reduce (or count towards) the First Lien Leverage Ratio, the Secured Leverage Ratio or the Total Leverage Ratio for purposes of any calculation thereof, in each case, for the fiscal quarter with respect to which such Cure Right was exercised, except that with respect to fiscal quarters thereafter, such reduction may apply but only to the Cure Amount;extent the proceeds are actually applied to prepay Indebtedness pursuant to Section 2.05(a).
(b) ifIf, after giving effect to the foregoing pro forma adjustment (without giving effect to any portion exercise of the Cure Amount on Right and the balance sheet of the Borrower and its Restricted Subsidiaries with respect recalculations pursuant to such fiscal quarter only but with giving pro forma effect to any portion of the Cure Amount applied to any repayment of any Indebtedness)clause (a) above, the Borrower and its Restricted Subsidiaries shall then be in compliance with the requirements of the Financial Performance CovenantsCovenants during such Test Period (including for purposes of Section 4.02), the Borrower and its Restricted Subsidiaries shall be deemed to have satisfied the requirements of the Financial Performance Covenant Covenants as of the relevant date of determination with the same effect as though there had been no failure to comply therewith at such date, and the applicable breach Default or default Event of the Financial Performance Covenant Default under Section 8.01 that had occurred shall be deemed cured for cured; provided that (i) the purposes of this Agreement; and
Cure Right may be exercised on no more than five (c5) Notwithstanding anything herein to the contraryoccasions, (iii) in each four consecutive fiscal quarter period of the Borrower period, there shall be at least two fiscal quarters in respect of which the no Cure Right is not exercised, (ii) during the term of this Agreement, the Cure Right shall not be exercised more than five times, and (iii) with respect to any exercise of the Cure Right, the Cure Amount shall be no greater than the amount required for purposes of complying to cause the Borrower to be in compliance with the Financial Performance Covenant and any amounts Covenants.
(c) Notwithstanding anything in excess thereof this Agreement to the contrary, following the delivery by the Borrower of a written notice to the Administrative Agent of its intent to exercise the Cure Right (x) the Lenders shall not be deemed permitted to be exercise any rights then available as a result of an Event of Default under this Article VIII on the basis of a breach of the Financial Covenants so as to enable the consummation of the Cure Amount Right as permitted under this Section 8.05 and (ivy) the Lenders shall not be required to make a Loan or issue, amend, renew or extend any Letter of Credit Extension and the L/C Issuers shall not be required to make any L/C Credit Extension unless and until the Borrower has received the Cure Amount required to cause the Borrower and the Restricted Subsidiaries to be in compliance with the Financial Performance Covenants. Notwithstanding any other provision in this Agreement to the contrary, the Cure Amount received pursuant to any exercise of the Cure Right shall be disregarded for purposes of determining the Available Amount, the Available Equity Amount, any financial ratio-based conditions or tests, pricing or any available basket under Article VI of this Agreement.
Appears in 3 contracts
Samples: Credit Agreement (Travel & Leisure Co.), Credit Agreement (Wyndham Destinations, Inc.), Credit Agreement (Wyndham Destinations, Inc.)
Right to Cure. Notwithstanding anything to the contrary contained in Section 7.01, in the event that the Borrower Holdings and its Restricted Subsidiaries fail to comply with the requirements of the Financial Performance Covenant as of the last day of any fiscal quarter of the BorrowerHoldings, at any time after the beginning of such fiscal quarter until the expiration of the 10th Business Day following the date on which the financial statements with respect to such fiscal quarter (or the fiscal year ended on the last day of such fiscal quarter) are required to be delivered pursuant to Section 5.01(a5.01(a)(i) or Section 5.01(b5.01(b)(i), the Borrower Holdings or any Parent Entity thereof shall have the right to issue common Equity Interests or other Equity Interests (provided such other Equity Interests are reasonably satisfactory to the Administrative Agent) for cash or otherwise receive cash contributions to the capital of the Borrower Holdings as cash common Equity Interests or other Equity Interests (provided such other Equity Interests are reasonably satisfactory to the Administrative Agent) (collectively, the “Cure Right”), and upon the receipt by the Borrower Holdings of the Net Proceeds of such issuance that are not otherwise applied (the “Cure Amount”) pursuant to the exercise by the Borrower Holdings of such Cure Right such Financial Performance Covenant shall be recalculated giving effect to the following pro forma adjustment:
(a) Consolidated EBITDA shall be increased with respect to such applicable fiscal quarter and any four fiscal quarter period that contains such fiscal quarter, solely for the purpose of measuring the Financial Performance Covenant and not for any other purpose under this Agreement, by an amount equal to the Cure Amount;
(b) if, after giving effect to the foregoing pro forma adjustment (without giving effect to any portion of the Cure Amount on the balance sheet of the Borrower Holdings and its Restricted Subsidiaries with respect to such fiscal quarter only but with giving pro forma effect to any portion of the Cure Amount applied to any repayment of any Indebtedness), the Borrower Holdings and its Restricted Subsidiaries shall then be in compliance with the requirements of the Financial Performance Covenants, the Borrower Holdings and its Restricted Subsidiaries shall be deemed to have satisfied the requirements of the Financial Performance Covenant as of the relevant date of determination with the same effect as though there had been no failure to comply therewith at such date, and the applicable breach or default of the Financial Performance Covenant that had occurred shall be deemed cured for the purposes of this Agreement; and
(c) Notwithstanding anything herein to the contrary, (i) in each four consecutive fiscal quarter period of the Borrower Holdings there shall be at least two fiscal quarters in which the Cure Right is not exercised, (ii) during the term of this Agreement, the Cure Right shall not be exercised more than five times, (iii) the Cure Amount shall be no greater than the amount required for purposes of complying with the Financial Performance Covenant and any amounts in excess thereof shall not be deemed to be a Cure Amount and (iv) the Lenders shall not be required to make a Loan or issue, amend, renew or extend any Letter of Credit unless and until the Borrower Holdings has received the Cure Amount required to cause the Borrower Holdings and the Restricted Subsidiaries to be in compliance with the Financial Performance Covenants. Notwithstanding any other provision in this Agreement to the contrary, the Cure Amount received pursuant to any exercise of the Cure Right shall be disregarded for purposes of determining the Available Amount, the Available Equity Amount, any financial ratio-based conditions or tests, pricing or any available basket under Article VI of this Agreement.
Appears in 3 contracts
Samples: Credit Agreement (New Whale Inc.), Credit Agreement (Endeavor Group Holdings, Inc.), Credit Agreement (Endeavor Group Holdings, Inc.)
Right to Cure. (1) Notwithstanding anything to the contrary contained in Section 7.018.01 or Section 8.02, in but subject to Sections 8.04(2) and (3), for the event that the Borrower and its Restricted Subsidiaries fail to comply with the requirements purpose of determining whether an Event of Default under the Financial Performance Covenant as of the last day of any fiscal quarter of the Borrower, at any time after the beginning of such fiscal quarter until the expiration of the 10th Business Day following the date on which the financial statements with respect to such fiscal quarter (or the fiscal year ended on the last day of such fiscal quarter) are required to be delivered pursuant to Section 5.01(a) or Section 5.01(b)has occurred, the Borrower may on one or more occasions designate any Parent Entity thereof shall have portion of the right to issue common Net Proceeds from any Permitted Equity Interests Issuance or other Equity Interests (provided such other Equity Interests are reasonably satisfactory of any contribution to the Administrative Agent) for cash or otherwise receive cash contributions to the common capital of the Borrower as cash common Equity Interests (or from any other contribution to capital or sale or issuance of any other Equity Interests (provided such other Equity Interests are on terms reasonably satisfactory to the Administrative Agent) (collectively, the “Cure Right”), and upon the receipt by the Borrower of the Net Proceeds of such issuance that are not otherwise applied (the “Cure Amount”) pursuant as an increase to Run-Rate Adjusted EBITDA for the exercise by the Borrower of such Cure Right such Financial Performance Covenant shall be recalculated giving effect to the following pro forma adjustment:applicable fiscal quarter; provided that
(a) Consolidated EBITDA shall such amounts to be increased designated are actually received by the Borrower (i) on or after the last Business Day of the applicable fiscal quarter and (ii) on or prior to the tenth (10th) Business Day after the date on which financial statements are required to be delivered with respect to such applicable fiscal quarter and any four fiscal quarter period that contains such fiscal quarter, solely for (the purpose of measuring the Financial Performance Covenant and not for any other purpose under this Agreement, by an amount equal to the “Cure Amount;Expiration Date”),
(b) if, after giving effect such amounts to be designated do not exceed the maximum aggregate amount necessary to cure any Event of Default under the Financial Covenant as of such date and
(c) the Borrower will have provided notice to the foregoing pro forma adjustment Administrative Agent on the date such amounts are designated as a “Cure Amount” (without giving effect it being understood that to the extent such notice is provided in advance of delivery of a Compliance Certificate for the applicable period, the amount of such Net Proceeds that is designated as the Cure Amount may be lower than specified in such notice to the extent that the amount necessary to cure any Event of Default under the Financial Covenant is less than the full amount of such originally designated amount). The Cure Amount used to calculate Run-Rate Adjusted EBITDA for one fiscal quarter will be used and included when calculating Run-Rate Adjusted EBITDA for each Test Period that includes such fiscal quarter. The parties hereby acknowledge that this Section 8.04(1) may not be relied on for purposes of calculating any financial ratios other than as applicable to the Financial Covenant (and may not be included for purposes of determining pricing, mandatory prepayments and the availability or amount permitted pursuant to any portion covenant under Article VII) and may not result in any adjustment to any amounts (including the amount of Indebtedness) or increase in cash with respect to the fiscal quarter with respect to which such Cure Amount was made other than the amount of the Run-Rate Adjusted EBITDA referred to in the immediately preceding sentence, except to the extent such proceeds are actually applied to prepay Indebtedness under the Facilities. Notwithstanding anything to the contrary contained in Section 8.01 and Section 8.02, (A) upon designation of the Cure Amount on by the balance sheet of the Borrower and its Restricted Subsidiaries with respect to such fiscal quarter only but with giving pro forma effect to any portion of the Cure Amount applied to any repayment of any Indebtedness)Borrower, the Borrower and its Restricted Subsidiaries shall then be in compliance with the requirements of the Financial Performance Covenants, the Borrower and its Restricted Subsidiaries shall Covenant will be deemed to have satisfied the requirements of the Financial Performance Covenant and complied with as of the end of the relevant date of determination fiscal quarter with the same effect as though there had been no failure to comply therewith at such datewith the Financial Covenant and any Event of Default under the Financial Covenant (and any other Default as a result thereof) will be deemed not to have occurred for purposes of the Loan Documents, and (B) neither the applicable breach Administrative Agent nor any Lender may exercise any rights or default remedies under Section 8.02 (or under any other Loan Document) on the basis of any actual or purported Event of Default under the Financial Performance Covenant that had occurred shall be deemed cured for the purposes of this Agreement; and
(cand any other Default as a result thereof) Notwithstanding anything herein to the contrary, (i) in each four consecutive fiscal quarter period of the Borrower there shall be at least two fiscal quarters in which until and unless the Cure Right is not exercised, (ii) during the term of this Agreement, the Cure Right shall not be exercised more than five times, (iii) Expiration Date has occurred without the Cure Amount shall be no greater than the amount required for purposes of complying with the Financial Performance Covenant and any amounts in excess thereof shall not be deemed to be a Cure Amount and (iv) the Lenders shall not be required to make a Loan or issue, amend, renew or extend any Letter of Credit unless and until the Borrower has received the Cure Amount required to cause the Borrower and the Restricted Subsidiaries to be in compliance with the Financial Performance Covenants. Notwithstanding any other provision in this Agreement to the contrary, the Cure Amount received pursuant to any exercise of the Cure Right shall be disregarded for purposes of determining the Available Amount, the Available Equity Amount, any financial ratio-based conditions or tests, pricing or any available basket under Article VI of this Agreementhaving been designated.
Appears in 3 contracts
Samples: Credit Agreement (Life Time Group Holdings, Inc.), Credit Agreement (Life Time Group Holdings, Inc.), Credit Agreement (Life Time Group Holdings, Inc.)
Right to Cure. (a) Notwithstanding anything to the contrary contained in Section 7.01, in the event that the Borrower and its Restricted Subsidiaries fail fails to comply with the requirements of the Financial Performance Covenant as of the last day of any fiscal quarter of the Borrowerfinancial covenants set forth in Sections 6.11 and 6.12, at any time after the beginning of such fiscal quarter if then in effect, until the expiration of the 10th tenth Business Day following subsequent to the date on which the financial statements with respect to such fiscal quarter (or the fiscal year ended on the last day of such fiscal quarter) are a Compliance Certificate is required to be delivered pursuant to Section 5.01(a5.01(c) or Section 5.01(b(such required date, the “Delivery Deadline” and the tenth Business Day thereafter, the “Cure Deadline”), the shareholders of the Borrower or any Parent Entity thereof shall have the right to issue common Equity Interests or other Equity Interests (provided such other Equity Interests are reasonably satisfactory contribute cash to the Administrative Agent) for cash or otherwise receive cash contributions to the capital equity of the Borrower as cash common Equity Interests or other Equity Interests (provided such other Equity Interests are reasonably satisfactory in an aggregate amount equal to the Administrative Agent) amount necessary to cure the relevant failure to comply with Sections 6.11 and 6.12 (collectively, the “Cure Right”), and upon the receipt by the Borrower of the Net Proceeds of such issuance that are not otherwise applied cash (the “Cure Amount”) pursuant to the exercise by the shareholders of the Borrower of such Cure Right such Financial Performance Covenant Right, the Total Net Leverage Ratio and the Interest Coverage Ratio shall be recalculated giving effect to the following pro forma adjustmentadjustments:
(ai) Consolidated EBITDA for the period in which the Cure Amount is being applied shall be increased with respect to such applicable fiscal quarter and any four fiscal quarter period that contains such fiscal quarterincreased, solely for the purpose of measuring compliance with Sections 6.11 and 6.12 as of the Financial Performance Covenant last day of such period and not for any other purpose under this Agreement, by an amount equal to the Cure Amount;; and
(bii) ifIf, after giving effect to the foregoing pro forma adjustment (without giving effect to any portion of the Cure Amount on the balance sheet of the Borrower and its Restricted Subsidiaries with respect to such fiscal quarter only but with giving pro forma effect to any portion of the Cure Amount applied to any repayment of any Indebtedness)recalculations, the Borrower and its Restricted Subsidiaries shall then be in compliance with the requirements of the Financial Performance CovenantsTotal Net Leverage Ratio and Interest Coverage Ratio under Sections 6.11 and 6.12, the Borrower and its Restricted Subsidiaries shall be deemed to have satisfied the requirements of the Financial Performance Covenant Total Net Leverage Ratio and Interest Coverage Ratio as of the relevant date of determination with the same effect as though there had been no failure to comply therewith at such date, and the applicable breach or default of the Financial Performance Covenant Sections 6.11 and 6.12 that had occurred shall be deemed cured for this purpose under this Agreement.
(b) Upon receipt by the Administrative Agent of written notice on the Delivery Deadline that the Borrower intends to exercise the Cure Right in respect of such Fiscal Quarter or Fiscal Year, the Lenders shall not be permitted to accelerate the Loans held by them, exercise remedies against the Collateral or any other rights and remedies under any of the Loan Documents that are available during the continuance of an Event of Default on the basis of a failure to comply with the requirements of the financial covenants set forth in Sections 6.11 and 6.12, unless such failure is not cured by the Borrower’s receipt of the Cure Amount on or prior to the Cure Deadline; provided that, during such period until the Cure Amount has been received by the Borrower as provided above, a Default in respect of such failure to comply with Sections 6.11 and 6.12 shall continue to exist for all purposes of this Agreement; andAgreement and the other Loan Documents.
(c) Notwithstanding anything herein to the contrary, (i) in each four consecutive fiscal quarter four-Fiscal Quarter period of the Borrower there shall be at least two fiscal quarters (2) Fiscal Quarters in which the Cure Right is not exercised, exercised and (ii) during the term of this Agreement, the Cure Right shall not be exercised more than five times, (iii) times during the Cure Amount shall be no greater than the amount required for purposes of complying with the Financial Performance Covenant and any amounts in excess thereof shall not be deemed to be a Cure Amount and (iv) the Lenders shall not be required to make a Loan or issue, amend, renew or extend any Letter of Credit unless and until the Borrower has received the Cure Amount required to cause the Borrower and the Restricted Subsidiaries to be in compliance with the Financial Performance Covenants. Notwithstanding any other provision in this Agreement to the contrary, the Cure Amount received pursuant to any exercise of the Cure Right shall be disregarded for purposes of determining the Available Amount, the Available Equity Amount, any financial ratio-based conditions or tests, pricing or any available basket under Article VI term of this Agreement.
Appears in 3 contracts
Samples: Credit Agreement (YETI Holdings, Inc.), Credit Agreement (YETI Holdings, Inc.), Credit Agreement (YETI Holdings, Inc.)
Right to Cure. Notwithstanding anything to the contrary contained in Section 7.01, in the event that the Borrower Holdings and its Restricted Subsidiaries fail to comply with the requirements of the Financial Performance Covenant as of the last day of any fiscal quarter of the BorrowerHoldings, at any time after the beginning of such fiscal quarter until the expiration of the 10th Business Day following the date on which the financial statements with respect to such fiscal quarter (or the fiscal year ended on the last day of such fiscal quarter) are required to be delivered pursuant to Section 5.01(a) or Section 5.01(b), the Borrower Holdings or any Parent Entity thereof shall have the right to issue common Equity Interests or other Equity Interests (provided such other Equity Interests are reasonably satisfactory to the Administrative Agent) for cash or otherwise receive cash contributions to the capital of the Borrower Holdings as cash common Equity Interests or other Equity Interests (provided such other Equity Interests are reasonably satisfactory to the Administrative Agent) (collectively, the “Cure Right”), and upon the receipt by the Borrower Holdings of the Net Proceeds of such issuance that are not otherwise applied (the “Cure Amount”) pursuant to the exercise by the Borrower Holdings of such Cure Right such Financial Performance Covenant shall be recalculated giving effect to the following pro forma adjustment:
(a) Consolidated EBITDA shall be increased with respect to such applicable fiscal quarter and any four fiscal quarter period that contains such fiscal quarter, solely for the purpose of measuring the Financial Performance Covenant and not for any other purpose under this Agreement, by an amount equal to the Cure Amount;
(b) if, after giving effect to the foregoing pro forma adjustment (without giving effect to any portion of the Cure Amount on the balance sheet of the Borrower Holdings and its Restricted Subsidiaries with respect to such fiscal quarter only but with giving pro forma effect to any portion of the Cure Amount applied to any repayment of any Indebtedness), the Borrower Holdings and its Restricted Subsidiaries shall then be in compliance with the requirements of the Financial Performance Covenants, the Borrower Holdings and its Restricted Subsidiaries shall be deemed to have satisfied the requirements of the Financial Performance Covenant as of the relevant date of determination with the same effect as though there had been no failure to comply therewith at such date, and the applicable breach or default of the Financial Performance Covenant that had occurred shall be deemed cured for the purposes of this Agreement; and
(c) Notwithstanding anything herein to the contrary, (i) in each four consecutive fiscal quarter period of the Borrower Holdings there shall be at least two fiscal quarters in which the Cure Right is not exercised, (ii) during the term of this Agreement, the Cure Right shall not be exercised more than five times, (iii) the Cure Amount shall be no greater than the amount required for purposes of complying with the Financial Performance Covenant and any amounts in excess thereof shall not be deemed to be a Cure Amount and (iv) the Lenders shall not be required to make a Loan or issue, amend, renew or extend any Letter of Credit unless and until the Borrower Holdings has received the Cure Amount required to cause the Borrower Holdings and the Restricted Subsidiaries to be in compliance with the Financial Performance Covenants. Notwithstanding any other provision in this Agreement to the contrary, the Cure Amount received pursuant to any exercise of the Cure Right shall be disregarded for purposes of determining the Available Amount, the Available Equity Amount, any financial ratio-based conditions or tests, pricing or any available basket under Article VI of this Agreement.
Appears in 3 contracts
Samples: First Lien Credit Agreement (New Whale Inc.), First Lien Credit Agreement (Endeavor Group Holdings, Inc.), First Lien Credit Agreement (Endeavor Group Holdings, Inc.)
Right to Cure. Notwithstanding anything to the contrary contained in Section 7.018.01:
(a) For the purpose of determining whether a Financial Covenant Event of Default has occurred, in the event that the Administrative Borrower and its Restricted Subsidiaries fail to comply with the requirements may on one or more occasions designate any portion of the Financial Performance Covenant as net cash proceeds from a sale or issuance of Qualified Equity Interests of the last day of any fiscal quarter of the Borrower, at any time after the beginning of such fiscal quarter until the expiration of the 10th Business Day following the date on which the financial statements with respect to such fiscal quarter (or the fiscal year ended on the last day of such fiscal quarter) are required to be delivered pursuant to Section 5.01(a) or Section 5.01(b), the Parent Borrower or any Parent Entity thereof shall have the right to issue common Equity Interests or other Equity Interests (provided such other Equity Interests are reasonably satisfactory cash contribution to the Administrative Agent) for cash or otherwise receive cash contributions to the common capital of the Parent Borrower as cash common Equity Interests or other Equity Interests (provided such other Equity Interests are reasonably satisfactory to the Administrative Agent) (collectively, the “Cure Right”), and upon the receipt by the Borrower of the Net Proceeds of such issuance that are not otherwise applied (the “Cure Amount”) as an increase to Consolidated EBITDA for the applicable fiscal quarter; provided that (A) the Cure Amount (i) is actually received by the Parent Borrower on or before the later of (x) the fifteenth (15th) calendar day after the date on which the Compliance Certificate pursuant to the exercise by the Borrower of such Cure Right such Financial Performance Covenant shall Section 6.02(a) is required to be recalculated giving effect to the following pro forma adjustment:
(a) Consolidated EBITDA shall be increased delivered with respect to such applicable fiscal quarter or fiscal year, as applicable, and (y) the fifteenth (15th) calendar day after the beginning of the Compliance Period that required the Parent Borrower to comply with the covenant set forth in Section 7.11 (such later date, the “Cure Expiration Date”) and (ii) does not exceed the aggregate amount necessary to cure any four Financial Covenant Event of Default as of such date and (B) the Administrative Borrower shall have provided advance notice (the “Notice of Intent to Cure”) to the Administrative Agent that such amounts are designated as a “Cure Amount” (it being understood that to the extent such notice is provided in advance of delivery of a Compliance Certificate for the applicable period, the Cure Amount actually received by the Parent Borrower may be lower than specified in such notice to the extent that the amount necessary to cure any Financial Covenant Event of Default is less than the full amount of such originally designated amount). The Cure Amount used to calculate Consolidated EBITDA for one fiscal quarter period shall be used and included when calculating Consolidated EBITDA for each Test Period that contains includes such fiscal quarter, solely for the purpose of measuring the Financial Performance Covenant and not for any other purpose under this Agreement, by an amount equal to the Cure Amount;.
(b) if, after giving effect The parties hereby acknowledge that this Section 8.04 may not be relied on for purposes of calculating any financial ratios or any other purpose other than for determining actual compliance with Section 7.11 (and not Pro Forma Compliance with Section 7.11 that is required by any other provision of this Agreement) and shall not result in any adjustment to the foregoing any amounts (including any pro forma adjustment (without giving effect to any portion reduction of the Cure Amount on the balance sheet amount of the Borrower and its Restricted Subsidiaries Indebtedness with respect to the quarter with respect to which such fiscal quarter only but with giving pro forma effect Cure Amount is made and shall not be included for purposes of determining pricing, mandatory prepayments and the availability or amount permitted pursuant to any portion covenant under Article 7) other than the increase to Consolidated EBITDA referred to in Section 8.04(a). The Cure Amount shall not constitute an Excluded Contribution.
(c) In furtherance of Section 8.04(a) above, (i) upon actual receipt by the Administrative Agent of the Cure Amount applied Notice of Intent to any repayment of any Indebtedness)Cure, the Borrower and its Restricted Subsidiaries shall then be in compliance with the requirements of the Financial Performance Covenants, the Borrower and its Restricted Subsidiaries covenant under Section 7.11 shall be deemed to have satisfied the requirements of the Financial Performance Covenant as of the relevant date of determination retroactively cured with the same effect as though there had been no failure to comply therewith at with the covenant under such date, Section 7.11 and the applicable breach any Default or default Event of the Financial Performance Covenant that had occurred Default under Section 7.11 shall be deemed cured not to have occurred for the purposes of this Agreement; andthe Loan Documents (provided that if the Cure Expiration Date has occurred without the Cure Amount having been received by the Parent Borrower and designated, such Default or Event of Default shall be deemed reinstated) and (ii) none of the Administrative Agent, any Lender or any other Secured Party may exercise any rights or remedies under Section 8.01 (or under any other Loan Document) solely on the basis of any actual or purported Default or Event of Default under Section 7.11 until and unless (A) the Cure Expiration Date has occurred without the Cure Amount having been received by the Parent Borrower and designated by the Administrative Borrower or (B) the Administrative Borrower has confirmed in writing that it does not intend to provide such Cure Amount. Notwithstanding the foregoing, no Borrower shall be permitted to request a Borrowing or any Credit Extension unless and until the Parent Borrower shall have received the Cure Amount.
(c) Notwithstanding anything herein to the contrary, (i) in In each period of four (4) consecutive fiscal quarter period of the Borrower quarters, there shall be at least two (2) fiscal quarters in which no cure right set forth in Section 8.04 is exercised and (ii) there shall be no pro forma reduction in Indebtedness with the Cure Amount for determining compliance with Section 7.11 for the fiscal quarter with respect to which such Cure Amount was made.
(e) There can be no more than five (5) fiscal quarters in which the Cure Right is not exercised, (ii) cure rights set forth in Section 7.11 are exercised during the term of this Agreement, the Cure Right shall not be exercised more than five times, (iii) the Cure Amount shall be no greater than the amount required for purposes of complying with the Financial Performance Covenant and any amounts in excess thereof shall not be deemed to be a Cure Amount and (iv) the Lenders shall not be required to make a Loan or issue, amend, renew or extend any Letter of Credit unless and until the Borrower has received the Cure Amount required to cause the Borrower and the Restricted Subsidiaries to be in compliance with the Financial Performance Covenants. Notwithstanding any other provision in this Agreement to the contrary, the Cure Amount received pursuant to any exercise of the Cure Right shall be disregarded for purposes of determining the Available Amount, the Available Equity Amount, any financial ratio-based conditions or tests, pricing or any available basket under Article VI of this AgreementFacility.
Appears in 3 contracts
Samples: Abl Credit Agreement (Option Care Health, Inc.), Abl Credit Agreement (Option Care Health, Inc.), Abl Credit Agreement (Option Care Health, Inc.)
Right to Cure. (a) Notwithstanding anything to the contrary contained in Section 7.01, in the event that the Borrower and its Restricted Subsidiaries fail fails (or, but for the operation of this Section 7.02, would fail) to comply with the requirements of the Financial Performance Covenant as of the last day of any fiscal quarter of the Borrower, at any time after the beginning of such fiscal quarter financial covenant set forth in Section 6.12 and until the expiration of the 10th Business Day following after the date on which the financial statements with respect to such fiscal quarter (or the fiscal year ended on the last day of such fiscal quarter) are required to be delivered pursuant with respect to Section 5.01(a) or Section 5.01(bthe applicable fiscal quarter hereunder (the “Cure Deadline”), the Borrower Holdings may engage in a sale or issuance of any Parent Entity thereof shall have the right to issue common Qualified Equity Interests or other Equity Interests (provided such other Equity Interests are reasonably satisfactory to the Administrative Agent) for cash of Holdings or otherwise receive cash contributions to the capital of the Borrower Holdings as cash common equity or other non-cash pay Qualified Equity Interests or other Equity Interests (provided such other Equity Interests are reasonably satisfactory to the Administrative Agent) (collectively, the “Cure Right”), and upon the receipt by the Borrower of the Net Proceeds of such issuance that are not otherwise applied (the “Cure Amount”) pursuant to the exercise by the Borrower of such Cure Right such Financial Performance Covenant shall be recalculated giving effect to the following pro forma adjustment:
(a) increase Consolidated EBITDA shall be increased with respect to such applicable fiscal quarter and any four fiscal quarter period that contains such fiscal quarter, solely for the purpose of measuring the Financial Performance Covenant and not for any other purpose under this Agreement, by an amount equal to such net cash proceeds; provided that such net cash proceeds (i) are actually received by the Cure Amount;
Borrower (bincluding through capital contribution of such net cash proceeds by Holdings to the Borrower) ifno later than 10 Business Days after the date on which financial statements are required to be delivered with respect to such fiscal quarter hereunder, and (ii) do not exceed the aggregate amount necessary to comply with Section 6.12 for any applicable period. If, after giving effect to the foregoing pro forma adjustment (without giving effect to any portion of the Cure Amount on the balance sheet of increase in Consolidated EBITDA, Holdings and the Borrower and its Restricted Subsidiaries with respect to such fiscal quarter only but with giving pro forma effect to any portion of the Cure Amount applied to any repayment of any Indebtedness), the Borrower and its Restricted Subsidiaries shall then be in compliance with the requirements of the Financial Performance CovenantsSection 6.12, Holdings and the Borrower and its Restricted Subsidiaries shall be deemed to have satisfied the such requirements of the Financial Performance Covenant as of the relevant date of determination with the same effect as though there had been (or would have been) no failure to comply therewith at such date, and the applicable breach failure to comply that occurred (or default of the Financial Performance Covenant that had occurred would have occurred) shall be deemed cured for the purposes of this Agreement; and. The parties hereby acknowledge that this Section 7.02(a) may not be relied on for purposes of calculating any financial ratios other than as applicable to Section 6.12 and shall not result in any adjustment to any amounts other than the amount of the Consolidated EBITDA referred to in the immediately preceding sentence. Upon receipt by the Administrative Agent of written notice, on or prior to the Cure Deadline, that the Borrower intends to exercise the cure right described above in this Section 7.02(a) in respect of a fiscal quarter, none of the Administrative Agent or the Lenders shall be permitted to accelerate Loans held by them or to exercise remedies against the Collateral on the basis of a failure to comply with the requirements of the financial covenant set forth in Section 6.12, unless such failure is not cured pursuant to the exercise of such cure right on or prior to the Cure Deadline.
(cb) Notwithstanding anything herein to the contrary, (i) in In each four consecutive fiscal quarter period of the Borrower four fiscal quarters, there shall be at least two fiscal quarters in which the Cure Right no cure set forth in Section 7.02(a) is not exercised, made.
(iic) during During the term of this Agreement, the Cure Right a cure set forth in Section 7.02(a) shall not be exercised more than five four times, (iii) the Cure Amount shall be no greater than the amount required for purposes of complying with the Financial Performance Covenant and any amounts in excess thereof shall not be deemed to be a Cure Amount and (iv) the Lenders shall not be required to make a Loan or issue, amend, renew or extend any Letter of Credit unless and until the Borrower has received the Cure Amount required to cause the Borrower and the Restricted Subsidiaries to be in compliance with the Financial Performance Covenants. Notwithstanding any other provision in this Agreement to the contrary, the Cure Amount received pursuant to any exercise of the Cure Right shall be disregarded for purposes of determining the Available Amount, the Available Equity Amount, any financial ratio-based conditions or tests, pricing or any available basket under Article VI of this Agreement.
Appears in 3 contracts
Samples: Credit Agreement (SVMK Inc.), Refinancing Facility Agreement (SVMK Inc.), Refinancing Facility Agreement (SVMK Inc.)
Right to Cure. (a) Notwithstanding anything to the contrary contained in Section 7.01, in the event that the Borrower and its the Restricted Subsidiaries fail to comply with the requirements of the Financial Performance Covenant as of the last day of any fiscal quarter of the Borrower, at any time after the beginning of such fiscal quarter until the expiration of the 10th Business Day following tenth day subsequent to the earlier of (i) the date on which a Compliance Certificate with respect to such fiscal quarter (or the fiscal year ended on the last day of such fiscal quarter) is delivered in accordance with Section 5.01(c) and (ii) the date on which the financial statements with respect to such fiscal quarter (or the fiscal year ended on the last day of such fiscal quarter) are required to be delivered pursuant to Section 5.01(a) or Section 5.01(b(b), the Borrower or any Parent Entity thereof as applicable, Holdings shall have the right to issue common Qualified Equity Interests or other Equity Interests (provided such other Equity Interests are reasonably satisfactory to the Administrative Agent) for cash or otherwise receive cash contributions to the capital of Holdings as cash common equity or other Qualified Equity Interests in a form reasonably acceptable to the Administrative Agent (which Holdings shall contribute through its Subsidiaries of which the Borrower is a Subsidiary to the Borrower as cash common Equity Interests or other Equity Interests (provided such other Equity Interests are reasonably satisfactory to the Administrative Agentequity) (collectively, the “Cure Right”), and upon the receipt by the Borrower of the Net Proceeds of such issuance that are not otherwise applied Not Otherwise Applied (the “Cure Amount”) pursuant to the exercise by the Borrower Holdings of such Cure Right such Right, the Financial Performance Covenant shall be recalculated giving effect to the following pro forma adjustment:
(ai) Consolidated EBITDA shall be increased with respect to such applicable fiscal quarter and any four fiscal quarter period Test Period that contains such fiscal quarter, solely for the purpose of measuring the Financial Performance Covenant and not for any other purpose under this Agreement, by an amount equal to the Cure Amount;; and
(bii) if, after giving effect to the foregoing pro forma adjustment (without giving effect to any repayment of any Indebtedness with any portion of the Cure Amount or any portion of the Cure Amount on the balance sheet of the Borrower and its Restricted Subsidiaries Subsidiaries, in each case, with respect to such fiscal quarter only but with giving pro forma effect to any portion of the Cure Amount applied to any repayment of any Indebtednessonly), the Borrower and its Restricted Subsidiaries shall then be in compliance with the requirements of the Financial Performance CovenantsCovenant, the Borrower and its Restricted Subsidiaries shall be deemed to have satisfied the requirements of the Financial Performance Covenant as of the relevant date of determination with the same effect as though there had been no failure to comply therewith at such date, and the applicable breach or default of the Financial Performance Covenant that had occurred shall be deemed cured for the purposes of this Agreement; andprovided that the Borrower shall have notified the Administrative Agent of the exercise of such Cure Right within five (5) Business Days of the issuance of the relevant Qualified Equity Interests for cash or the receipt of the cash contributions by Holdings.
(cb) Notwithstanding anything herein to the contrary, (i) in each four consecutive fiscal quarter period of the Borrower there shall be at least two fiscal quarters in which the Cure Right is not exercised, (ii) during the term of this Agreement, the Cure Right shall not be exercised more than five times, times and (iii) the Cure Amount shall be no greater than the amount required for purposes of complying with the Financial Performance Covenant and any amounts in excess thereof shall not be deemed to be a Cure Amount and (iv) the Lenders shall not be required to make a Loan or issue, amend, renew or extend any Letter of Credit unless and until the Borrower has received the Cure Amount required to cause the Borrower and the Restricted Subsidiaries to be in compliance with the Financial Performance CovenantsAmount. Notwithstanding any other provision in this Agreement to the contrary, the Cure Amount received pursuant to any exercise of the Cure Right shall be disregarded for purposes of determining the Available Amount, the Available Equity Amount, any financial ratio-based conditions condition or tests, pricing or any available basket under Article VI of this Agreement.
Appears in 2 contracts
Samples: First Lien Credit Agreement (NEP Group, Inc.), First Lien Credit Agreement (NEP Group, Inc.)
Right to Cure. (a) Notwithstanding anything to the contrary contained in Section 7.018.01(b), in the event that the Borrower and its Restricted Subsidiaries fail fails to comply with the requirements requirement of the Financial Performance Covenant as of the last day of any Test Period, the Borrower shall have the right, during the period beginning at the start of any fiscal quarter in which the Borrower determines that a breach of the BorrowerFinancial Covenant may occur, at any time after the beginning of such fiscal quarter until the expiration of the 10th tenth Business Day following (the “Cure Period”) after the date on which the financial statements with respect to such fiscal quarter (or the fiscal year ended on applicable Test Period in which the last day of such fiscal quarter) Financial Covenant is being measured are required to be delivered pursuant to Section 5.01(a) 6.01, to receive a direct or Section 5.01(b), indirect equity investment in cash in the Borrower or any Parent Entity thereof shall have the right to issue form of common Equity Interests Capital Stock (or other Equity Interests (provided such other Equity Interests are Qualified Capital Stock reasonably satisfactory acceptable to the Administrative Agent) for cash or otherwise receive cash contributions to the capital of the Borrower as cash common Equity Interests or other Equity Interests (provided such other Equity Interests are reasonably satisfactory to the Administrative Revolver Agent) (collectively, the “Cure Right”), and upon the receipt by the Borrower of net cash proceeds pursuant to the Net Proceeds exercise of such issuance that are not otherwise applied the Cure Right (the “Cure Amount”) pursuant to ), the exercise by the Borrower of such Cure Right such Financial Performance Covenant shall be recalculated recalculated, giving effect to the following a pro forma adjustment:
increase to Consolidated EBITDA for such Test Period in an amount equal to such Cure Amount; provided, that (ax) such pro forma adjustment to Consolidated EBITDA shall be increased with respect to such applicable fiscal quarter and any four fiscal quarter period that contains such fiscal quarter, given solely for the purpose of measuring determining the existence of a Default or an Event of Default under the Financial Performance Covenant with respect to any Test Period that includes the fiscal quarter for which such Cure Right was exercised and not for any other purpose under this Agreementany Loan Document (including for purposes of determining pricing, by an mandatory prepayments and the availability or amount equal permitted pursuant to any covenant under Article VII) for the quarter with respect to which such Cure Amount;Right was exercised and (y) there shall be no reduction in Indebtedness in connection with any Cure Amounts for determining compliance with Section 7.07 and no Cure Amounts will reduce (or count towards) the Consolidated First Lien Secured Leverage Ratio or the Consolidated Total Leverage Ratio for purposes of any calculation thereof for the fiscal quarter with respect to which such Cure Right was exercised.
(b) ifIf, after giving effect to the foregoing pro forma adjustment (without giving effect to any portion exercise of the Cure Amount on Right and the balance sheet of the Borrower and its Restricted Subsidiaries with respect recalculations pursuant to such fiscal quarter only but with giving pro forma effect to any portion of the Cure Amount applied to any repayment of any Indebtedness)clause (a) above, the Borrower and its Restricted Subsidiaries shall then be in compliance with the requirements of the Financial Performance CovenantsCovenant during such Test Period (including for purposes of Section 4.02), the Borrower and its Restricted Subsidiaries shall be deemed to have satisfied the requirements of the Financial Performance Covenant as of the relevant date of determination with the same effect as though there had been no failure to comply therewith at such date, and the applicable breach Default or default Event of the Financial Performance Covenant Default under Section 8.01 that had occurred shall be deemed cured for cured; provided, that (i) the purposes Cure Right may be exercised on no more than five (5) occasions, (ii) in each four consecutive fiscal quarter period, there shall be no more than two fiscal quarters in respect of this Agreement; andwhich the Cure Right is exercised, and (iii) with respect to any exercise of the Cure Right, the Cure Amount shall not be given effect in an amount greater than the amount required to cause the Borrower to be in compliance with the Financial Covenant.
(c) Notwithstanding anything herein to the contrary, (i) in each four consecutive fiscal quarter period prior to the expiration of the Borrower there shall be at least two fiscal quarters in which Cure Period (x) the Cure Right is not exercised, (ii) during the term of this Agreement, the Cure Right Lenders shall not be exercised more than five times, permitted to exercise any rights then available as a result of an Event of Default under Article VII on the basis of a breach of the Financial Covenant so as to enable the Borrower to consummate its Cure Rights as permitted under this Section 8.05(c) and (iiiy) the Cure Amount shall be no greater than the amount required for purposes of complying with the Financial Performance Covenant and any amounts in excess thereof shall not be deemed to be a Cure Amount and (iv) the Revolving Credit Lenders shall not be required to make a Loan or issue, amend, renew or extend any Letter of Credit Extension unless and until the Borrower has received the Cure Amount required to cause the Borrower and the Restricted Subsidiaries to be in compliance with the Financial Performance Covenants. Notwithstanding any other provision in this Agreement to the contrary, the Cure Amount received pursuant to any exercise of the Cure Right shall be disregarded for purposes of determining the Available Amount, the Available Equity Amount, any financial ratio-based conditions or tests, pricing or any available basket under Article VI of this AgreementCovenant.
Appears in 2 contracts
Samples: Credit Agreement (Frontier Communications Parent, Inc.), Credit Agreement (Frontier Communications Parent, Inc.)
Right to Cure. Notwithstanding anything to the contrary contained in Section 7.01, in the event that the Borrower and its Restricted Subsidiaries fail fails (or, but for the operation of this Section 7.02, would fail) to comply with the requirements of the Financial Performance Covenant as of the last day of any fiscal quarter of the Borrowerquarter, at any time after such last day until the beginning of day that is 20 days after the date the certificate calculating the Financial Performance Covenant for such fiscal quarter until the expiration of the 10th Business Day following the date on which the financial statements with respect to such fiscal quarter (or the fiscal year ended on the last day of such fiscal quarter) are is required to be delivered pursuant to Section 5.01(a) or Section 5.01(b5.04(c), the Borrower or any Parent Entity thereof and/or Holdings shall have the right to issue common Equity Interests or other Equity Interests (provided such other Equity Interests are reasonably satisfactory to the Administrative Agent) Permitted Cure Securities for cash or otherwise receive cash contributions to the capital of the Borrower as cash common Equity Interests or other Equity Interests (provided such other Equity Interests are reasonably satisfactory to the Administrative Agent) any Parent Entity and/or Holdings (collectively, the “Cure Right”), and upon the receipt by which cash shall be contributed as common equity to the Borrower of the Net Proceeds of (such issuance that are not otherwise applied (contributed amount, the “Cure Amount”) pursuant to the exercise by the Borrower of such Cure Right ), such Financial Performance Covenant shall be recalculated giving effect to the following pro forma adjustment:
(a) Consolidated by increasing EBITDA shall be increased with respect to such applicable fiscal quarter and any four fiscal four-quarter period that contains such fiscal quarter, solely for the purpose of measuring the Financial Performance Covenant and not for any other purpose under this AgreementAgreement (including any “baskets” or the Pricing Grid), by an amount equal to the Cure Amount;
; provided, that, (bi) ifin each four-fiscal-quarter period there shall be at least two fiscal quarters in which the Cure Right is not exercised, (ii) no more than five Cure Rights will be exercised in the aggregate during the term of this Agreement, (iii) for purposes of this Section 7.02, the Cure Amount shall be no greater than the amount required for purposes of complying with the Financial Performance Covenant and (iv) for the avoidance of doubt, in recalculating the Financial Performance Covenant by increasing EBITDA as set forth above, there shall be no pro forma effect given to any reduction of Indebtedness with the Cure Amount in such recalculation of the Financial Performance Covenant. If, after giving effect to the foregoing pro forma adjustment (without giving effect to any portion of the Cure Amount on the balance sheet of the Borrower and its Restricted Subsidiaries with respect to such fiscal quarter only but with giving pro forma effect to any portion of the Cure Amount applied to any repayment of any Indebtedness)adjustments in this paragraph, the Borrower and its Restricted Subsidiaries shall then be in compliance with the requirements of the Financial Performance CovenantsCovenant, the Borrower and its Restricted Subsidiaries shall be deemed to have satisfied the requirements of the Financial Performance Covenant as of the relevant date of determination with the same effect as though there had been no failure to comply therewith at such date, and the applicable breach or default of the Financial Performance Covenant that had occurred shall be deemed cured for the purposes of this Agreement; and
(c) Notwithstanding anything herein to the contrary, (i) in each four consecutive fiscal quarter period of the Borrower there shall be at least two fiscal quarters in which the Cure Right is not exercised, (ii) during the term of this Agreement, the Cure Right shall not be exercised more than five times, (iii) the Cure Amount shall be no greater than the amount required for purposes of complying with the Financial Performance Covenant and any amounts in excess thereof shall not be deemed to be a Cure Amount and (iv) the Lenders shall not be required to make a Loan or issue, amend, renew or extend any Letter of Credit unless and until the Borrower has received the Cure Amount required to cause the Borrower and the Restricted Subsidiaries to be in compliance with the Financial Performance Covenants. Notwithstanding any other provision in this Agreement to the contrary, the Cure Amount received pursuant to any exercise of the Cure Right shall be disregarded for purposes of determining the Available Amount, the Available Equity Amount, any financial ratio-based conditions or tests, pricing or any available basket under Article VI of this Agreement.
Appears in 2 contracts
Samples: Credit Agreement (Great Wolf Resorts, Inc.), Credit Agreement (EVERTEC, Inc.)
Right to Cure. Notwithstanding anything to the contrary contained in Section 7.01, in the event that Holdings and the Borrower and its Restricted Subsidiaries fail to comply with the requirements of the Financial Performance Covenant as of the last day of any fiscal quarter of the BorrowerHoldings, at any time after the beginning of such fiscal quarter until the expiration of the 10th Business Day following day subsequent to the earlier of (i) the date on which a Compliance Certificate with respect to such fiscal quarter (or the fiscal year ended on the last day of such fiscal quarter) is delivered in accordance with Section 5.01(d) and (ii) the date on which the financial statements with respect to such fiscal quarter (or the fiscal year ended on the last day of such fiscal quarter) are required to be delivered pursuant to Section 5.01(a) or Section 5.01(b), the Borrower or any Parent Entity thereof as applicable, Holdings shall have the right to issue common Qualified Equity Interests or other Equity Interests (provided such other Equity Interests are reasonably satisfactory to the Administrative Agent) for cash or otherwise receive cash contributions to the capital of the Borrower Holdings as cash common equity or other Qualified Equity Interests or other Equity Interests (provided such other Equity Interests are reasonably satisfactory to the Administrative Agent) (collectively, the “Cure Right”), and upon the receipt by the Borrower Holdings of the Net Proceeds of such issuance that are not otherwise applied Not Otherwise Applied (the “Cure Amount”) pursuant to the exercise by the Borrower Holdings of such Cure Right such Financial Performance Covenant shall be recalculated giving effect to the following pro forma adjustment:
(a) Consolidated EBITDA shall be increased with respect to such applicable fiscal quarter and any four fiscal quarter period that contains such fiscal quarter, solely for the purpose of measuring the Financial Performance Covenant and not for any other purpose under this Agreement, by an amount equal to the Cure Amount;
(b) if, after giving effect to the foregoing pro forma adjustment (without giving effect to any portion of the Cure Amount on the balance sheet of the Borrower Holdings and its Restricted Subsidiaries with respect to such fiscal quarter only but with giving pro forma effect to any portion of the Cure Amount applied to any repayment of any Indebtedness), the Borrower Holdings and its Restricted Subsidiaries shall then be in compliance with the requirements of the Financial Performance Covenants, the Borrower Holdings and its Restricted Subsidiaries shall be deemed to have satisfied the requirements of the Financial Performance Covenant as of the relevant date of determination with the same effect as though there had been no failure to comply therewith at such date, and the applicable breach or default of the Financial Performance Covenant that had occurred shall be deemed cured for the purposes of this Agreement; and
(c) Notwithstanding anything herein to the contrary, (i) in each four consecutive fiscal quarter period of the Borrower Holdings there shall be at least two fiscal quarters in which the Cure Right is not exercised, (ii) during the term of this Agreement, the Cure Right shall not be exercised more than five times, times and (iii) for purposes of this Section 7.02, the Cure Amount shall be no greater than the amount required for purposes of complying with the Financial Performance Covenant and any amounts in excess thereof shall not be deemed to be a Cure Amount and (iv) the Lenders shall not be required to make a Loan or issue, amend, renew or extend any Letter of Credit unless and until the Borrower has received the Cure Amount required to cause the Borrower and the Restricted Subsidiaries to be in compliance with the Financial Performance CovenantsAmount. Notwithstanding any other provision in this Agreement to the contrary, the Cure Amount received pursuant to any exercise of the Cure Right shall be disregarded for purposes of determining the Available Amount, the Available Equity Amount, any financial ratio-based conditions or testsconditions, pricing or any available basket under Article VI of this AgreementAgreement and there shall not have been a breach of any covenant under Article VI of this Agreement by reason of having no longer included such Cure Amount in any basket during the relevant period.
Appears in 2 contracts
Samples: First Lien Credit Agreement (Endeavor Group Holdings, Inc.), First Lien Credit Agreement (Endeavor Group Holdings, Inc.)
Right to Cure. (a) Notwithstanding anything to the contrary contained in Section 7.01, in the event that the Borrower Holdings and its Restricted Subsidiaries fail to comply with the requirements of the Financial Performance Covenant (if applicable) as of the last day of any applicable fiscal quarter of the Borrower, at any time after the beginning of such fiscal quarter until the expiration of the 10th tenth (10th) Business Day following subsequent to the date on which the financial statements with respect to such fiscal quarter (or the fiscal year ended on the last day of such fiscal quarter) are required to be delivered pursuant to Section 5.01(a) or Section 5.01(b(b), the Borrower or any Parent Entity thereof as applicable, Holdings shall have the right to issue common Qualified Equity Interests or other Equity Interests (provided such other Equity Interests are reasonably satisfactory to the Administrative Agent) for cash or otherwise receive cash contributions to the capital of the Borrower Holdings as cash common Equity Interests equity or other Qualified Equity Interests (provided such which Holdings shall contribute through its subsidiaries as cash common equity or other Qualified Equity Interests are reasonably satisfactory to the Administrative AgentInterests) (collectively, the “Cure Right”), and upon the receipt by the Borrower Holdings of the Net Proceeds of such issuance that are not otherwise applied (the “Cure Amount”) pursuant to the exercise by the Borrower Holdings of such Cure Right such the Financial Performance Covenant shall be recalculated giving effect to one of the following pro forma adjustmentadjustments:
(ai) Consolidated EBITDA shall be increased with respect to such applicable fiscal quarter and any four fiscal quarter period that contains such fiscal quarter, solely for the purpose of measuring the Financial Performance Covenant and not for any other purpose under this Agreement, by an amount equal to the Cure Amount;
; or (bii) if, after giving effect to the foregoing pro forma adjustment (without giving effect to any repayment of any Indebtedness with any portion of the Cure Amount or any portion of the Cure Amount on the balance sheet of the Borrower Holdings and its Restricted Subsidiaries Subsidiaries, in each case, with respect to such fiscal quarter only but with giving pro forma effect to any portion of the Cure Amount applied to any repayment of any Indebtednessonly), the Borrower Holdings and its Restricted Subsidiaries shall then be in compliance with the requirements of contained in the Financial Performance CovenantsCovenant or the Financial Performance Covenant is not applicable for such fiscal quarter, Holdings and the Borrower and its Restricted Subsidiaries shall be deemed to have satisfied the requirements of the Financial Performance Covenant as of the relevant date of determination with the same effect as though there had been no failure to comply therewith at such date, and the applicable breach or default of the Financial Performance Covenant that had occurred shall be deemed cured for the purposes of this Agreement; andprovided that the Borrower shall have notified the First Lien Administrative Agent of the exercise of such Cure Right within five (5) Business Days of the issuance of the relevant Qualified Equity Interests for cash or the receipt of the cash contributions by Holdings.
(cb) Notwithstanding anything herein to the contrary, (i) in each four consecutive fiscal quarter period of the Borrower Holdings there shall be at least two (2) fiscal quarters in which the Cure Right is not exercised, (ii) during the term of this Agreement, the Cure Right shall not be exercised more than five times, (5) times and (iii) for purposes of this Section 7.02, the Cure Amount shall be no greater than the amount required for purposes of complying with the Financial Performance Covenant and any amounts in excess thereof shall not be deemed to be a Cure Amount and (iv) the Lenders shall not be required to make a Loan or issue, amend, renew or extend any Letter of Credit unless and until the Borrower has received the Cure Amount required to cause the Borrower and the Restricted Subsidiaries to be in compliance with the Financial Performance CovenantsAmount. Notwithstanding any other provision in this Agreement to the contrary, the Cure Amount received pursuant to any exercise of the Cure Right shall be disregarded for purposes of determining the Available Amount, the Available Equity Amount, any financial ratio-based conditions or tests, pricing or any available basket under Article VI of this Agreement. For the avoidance of doubt, no Cure Amounts shall be applied to reduce the Indebtedness of Holdings and its Restricted Subsidiaries on a Pro Forma Basis for purposes of determining compliance with the Financial Performance Covenants and there shall not have been a breach of any covenant under Article VI of this Agreement by reason of having no longer included such Cure Amount in any basket during the relevant period.
Appears in 2 contracts
Samples: Credit Agreement (LivaNova PLC), Incremental Facility Amendment (LivaNova PLC)
Right to Cure. (a) Notwithstanding anything to the contrary contained in Section 7.018.01 or 8.02, in the event that the Borrower and its Restricted Subsidiaries fail fails to comply with the requirements of the Financial Performance Covenant as of the last day of with respect to any fiscal quarter of the Borrower, at any time after when the beginning Borrower is required to comply with such Financial Covenant pursuant to the terms thereof, then from the first day of such fiscal quarter until the expiration of the 10th fifteenth Business Day following the date on which the financial statements with Compliance Certificate is required to be delivered in respect to of such fiscal quarter pursuant to Section 6.02(a) (or the fiscal year ended on the last day of such fiscal quarter) are required to be delivered pursuant to Section 5.01(a) or Section 5.01(bperiod being the “Anticipated Cure Deadline”), the Borrower or any Parent Entity thereof shall have the right (the “Cure Right”) to issue common Equity Interests Capital Stock or other Equity Interests Qualified Stock (provided such other Equity Interests are or preferred equity or convertible preferred equity reasonably satisfactory acceptable to the Administrative Agent) for cash cash, or obtain a contribution to its equity (which shall be in the form of common equity or Qualified Stock or otherwise receive cash contributions in form reasonably acceptable to the capital Administrative Agent) and contribute the proceeds therefrom in the form of common Capital Stock or Qualified Stock (or preferred equity or convertible preferred equity reasonably acceptable to the Borrower as cash Administrative Agent) or a contribution to its equity (which shall be in the form of common Equity Interests equity or other Equity Interests (provided such other Equity Interests are Qualified Stock or otherwise in a form reasonably satisfactory acceptable to the Administrative Agent) (collectively, the “Cure RightEquity”), and upon the receipt by the Borrower of the Net Proceeds of such issuance that are not otherwise applied cash (the “Cure Amount”) ), pursuant to the exercise by the Borrower of such Cure Right such Right, the calculation of Consolidated EBITDA as used in the Financial Performance Covenant shall be recalculated giving effect to the following pro forma adjustmentadjustments:
(ai) Consolidated EBITDA shall be increased with respect to for such applicable fiscal quarter (and for any four fiscal quarter subsequent period that contains includes such fiscal quarter) shall be increased, solely for the purpose of measuring the Financial Performance Covenant and not for any other purpose under this Agreement, Agreement (including but not limited to determining the availability or amount of any covenant baskets or carve-outs (including the determination of amounts available under Section 7.05) or determining the Applicable Commitment Fee or Applicable Rate); provided that (1) the receipt by an amount equal the Borrower of the Cure Amount pursuant to the Cure Right shall be deemed to have no other effect on a consolidated basis under this Agreement (including but not limited to determining the availability or amount of any covenant baskets or carve-outs or determining the Applicable Commitment Fee or Applicable Rate, and (2) no Cure Amount shall reduce Indebtedness on a Pro Forma Basis for the fiscal quarter for which the Cure Right was exercised for purposes of calculating the Financial Covenant (whether as a result of a prepayment of the Loans or via netting of such Cure Amount;)); and
(bii) if, after giving effect to the foregoing pro forma adjustment (without giving effect to any portion of the Cure Amount on the balance sheet of the Borrower and its Restricted Subsidiaries with respect to such fiscal quarter only but with giving pro forma effect to any portion of the Cure Amount applied to any repayment of any Indebtedness)recalculations, the Borrower and its Restricted Subsidiaries shall then be in compliance with the requirements of the Financial Performance CovenantsCovenant, the Borrower and its Restricted Subsidiaries shall be deemed to have satisfied the requirements of the Financial Performance Covenant as of the relevant date of determination with the same effect as though there had been no failure to comply therewith at such date, and the applicable breach or default of the Financial Performance Covenant that had occurred (and any other Default as a result thereof, including the failure to meet any condition requiring no Default or Event of Default based solely on the basis of any actual or purported Event of Default under the Financial Covenant) shall be deemed cured for the purposes of this Agreement; and
(ciii) no Default or Event of Default shall be deemed to exist from the end of the applicable fiscal quarter until the Anticipated Cure Deadline, and the Lenders (i) shall not be permitted to accelerate Loans held by them, to terminate the Revolving Credit Commitments held by them or to exercise remedies against the Collateral on the basis of a failure to comply with the requirements of the Financial Covenant, unless such failure is not cured pursuant to the exercise of the Cure Right on or prior to the Anticipated Cure Deadline and (ii) shall not be obligated to make any Credit Extension under the Revolving Credit Facility until such Cure Amount has been received by the Borrower.
(b) Notwithstanding anything herein to the contrary, (i) in each four consecutive fiscal fiscal-quarter period of the Borrower there shall be at least no more than two consecutive fiscal quarters in respect of which the Cure Right is not exercised, (ii) there can be no more than five fiscal quarters in respect of which the Cure Right is exercised during the term of the Facilities and (iii) for purposes of this AgreementSection 8.03, the Cure Right shall not be exercised more than five times, (iii) the Cure Amount utilized shall be no greater than the minimum amount required for purposes of complying to remedy the applicable failure to comply with the Financial Performance Covenant.
(c) No Lender shall be required, from the date on which the Compliance Certificate is delivered with respect to the applicable fiscal quarter in which the Borrower fails to comply with the Financial Covenant and any amounts until such Cure Equity is received in excess thereof shall not be deemed to be a Cure Amount and (iv) accordance with the Lenders shall not be required terms of this Section 8.03 or such failure is waived in accordance with Section 10.01, to make a any Revolving Credit Loan or issue, amend, renew extend the expiry date thereof or extend increase the amount of any Letter of Credit unless and until the Borrower has received the Cure Amount required to cause the Borrower and the Restricted Subsidiaries to be in compliance with the Financial Performance Covenants. Notwithstanding any other provision in this Agreement to the contrary, the Cure Amount received pursuant to any exercise of the Cure Right shall be disregarded for purposes of determining the Available Amount, the Available Equity Amount, any financial ratio-based conditions or tests, pricing or any available basket under Article VI of this Agreement.
Appears in 2 contracts
Samples: Credit Agreement (Instructure Holdings, Inc.), Credit Agreement (Instructure Holdings, Inc.)
Right to Cure. Notwithstanding anything to the contrary contained in Section 7.01, in In the event that the Borrower and its Restricted Subsidiaries fail fails to comply with Subsection 4.1, until the requirements 20th day after delivery of the Financial Performance Covenant as of the last day of any fiscal quarter of the Borrowerrelated Compliance Certificate, at any time after the beginning of such fiscal quarter until the expiration of the 10th Business Day following the date on which the financial statements with respect to such fiscal quarter (or the fiscal year ended on the last day of such fiscal quarter) are required to be delivered pursuant to Section 5.01(a) or Section 5.01(b), the Borrower or any Parent Entity thereof shall have the right to issue common Equity Interests or other Equity Interests (provided such other Equity Interests are reasonably satisfactory to the Administrative Agent) Permitted Cure Securities for cash or otherwise receive cash contributions to the capital of Borrower, and apply the Borrower as cash common Equity Interests or other Equity Interests amount of the proceeds thereof to increase EBITDA with respect to such applicable fiscal quarter, and the applicable calculation periods that include such fiscal quarter (provided such other Equity Interests are reasonably satisfactory to the Administrative Agent) (collectively, the “Cure Right”); provided that, and upon the receipt by the Borrower of the Net Proceeds of such issuance that are not otherwise applied (the “Cure Amount”) pursuant to the exercise by the Borrower of such Cure Right such Financial Performance Covenant shall be recalculated giving effect to the following pro forma adjustment:
(a) Consolidated EBITDA shall such proceeds are actually received by Borrower no later than 20 days after the date on which financial statements are required to be increased delivered with respect to such applicable fiscal quarter and any four fiscal quarter period that contains such fiscal quarterhereunder, solely for the purpose of measuring the Financial Performance Covenant and not for any other purpose under this Agreement, by an amount equal to the Cure Amount;
(b) ifsuch proceeds do not exceed the aggregate amount necessary to cure (by addition to EBITDA) such Event of Default under Subsection 4.1 for such period, (c) the Cure Right shall not be exercised more than five times during the term of the Loans, and (d) in each period of four consecutive fiscal quarters, there shall be at least two fiscal quarters during which the Cure Right is not exercised. If, after giving effect to the foregoing pro forma adjustment (without giving effect to any portion but not, for the avoidance of the Cure Amount on the balance sheet of the Borrower and its Restricted Subsidiaries with respect to such fiscal quarter only but with doubt, giving pro forma effect to any portion of the Cure Amount applied to any repayment of any IndebtednessIndebtedness in connection therewith), the Borrower and its Restricted Subsidiaries shall then be Loan Parties are in compliance with the requirements of the Financial Performance CovenantsSubsection 4.1, the Borrower and its Restricted Subsidiaries Loan Parties shall be deemed to have satisfied the requirements of the Financial Performance Covenant such Subsection as of the relevant date of determination with the same effect as though there had been no failure to comply therewith at on such date, and the applicable breach or default of the Financial Performance Covenant such Subsection that had occurred shall be deemed cured for the all purposes of this Agreement; and
(c) Notwithstanding anything herein Agreement and any other Loan Document. The parties hereby acknowledge that this Subsection may not be relied on for purposes of calculating any financial ratios other than as applicable to the contrary, (i) in each four consecutive fiscal quarter period of the Borrower there shall be at least two fiscal quarters in which the Cure Right is not exercised, (ii) during the term of this Agreement, the Cure Right Subsection 4.1 and shall not be exercised more than five times, (iii) the Cure Amount shall be no greater result in any adjustment to any amounts other than the amount required for purposes of complying with the Financial Performance Covenant and any amounts in excess thereof shall not be deemed to be a Cure Amount and (iv) the Lenders shall not be required to make a Loan or issue, amend, renew or extend any Letter of Credit unless and until the Borrower has received the Cure Amount required to cause the Borrower and the Restricted Subsidiaries to be in compliance with the Financial Performance Covenants. Notwithstanding any other provision in this Agreement to the contrary, the Cure Amount received pursuant to any exercise of the Cure Right EBITDA referred to in the immediately preceding sentence and shall be disregarded for purposes of determining the Available Amountcalculation of EBITDA for all other purposes, the Available Equity Amount, any financial ratio-based conditions or testsincluding calculating basket levels, pricing and other items (including compliance with affirmative and negative covenants) governed by reference to EBITDA or any available basket under Article VI of this Agreementthe financial covenant in Subsection 4.1.
Appears in 2 contracts
Samples: Third Amendment and Confirmation Agreement (ATN International, Inc.), Credit Agreement (Atlantic Tele Network Inc /De)
Right to Cure. In the event of a default or breach by the Obligors in the performance of any of their respective obligations under the Agreement, the failure by the Obligors to satisfy any condition therein, or upon the occurrence or non-occurrence of any event or condition under the Agreement which would immediately or with the passage of any applicable grace period or the giving of notice, or both, enable Investor to terminate the Agreement (hereinafter, a “Default”), Investor shall not terminate the Agreement until it first gives written notice of such Default to Collateral Agent (concurrently with the notice of such Default to the applicable Obligor) and affords Collateral Agent (a) a period of 30 days (such 30 day period, for the avoidance of doubt, being in addition to any cure period granted to the Borrower to cure the related Default under the respective Agreement) from receipt of such notice to cure such Default if such Default is the failure to pay amounts to Investor which are due and payable under the Agreement or (b) with respect to any other Default, a reasonable opportunity, but no more than 60 days (such 60 day period, for the avoidance of doubt, being in addition to any cure period granted to the Obligors to cure the related Default under the respective Agreement) from receipt of such notice, to cure such Default (provided that during such cure period Collateral Agent or the applicable Obligor continues to diligently attempt to cure such Default); provided, however, that such additional cure periods shall not in any way amend or extend any date specific condition precedent in the Agreement. Notwithstanding anything to the contrary contained in Section 7.01herein, in if the event that Default is peculiar to the Borrower Obligors and its Restricted Subsidiaries fail to comply with not curable by Collateral Agent, such as the requirements insolvency, bankruptcy, general assignment for the benefit of the Financial Performance Covenant as creditors, or appointment of a receiver, trustee, custodian or liquidator of the last day of Obligors or their respective properties, then, notwithstanding any fiscal quarter right that Investor may have to terminate the Agreement, Collateral Agent shall be entitled to assume the rights and obligations of the Borrower, at any time after Obligors under the beginning of such fiscal quarter until Agreement within the expiration of the 10th Business Day following the date on which the financial statements with respect to such fiscal quarter (or the fiscal year ended on the last day of such fiscal quarter) are required to be delivered pursuant to Section 5.01(a) or Section 5.01(b), the Borrower or any Parent Entity thereof shall have the right to issue common Equity Interests or other Equity Interests (cure period provided such other Equity Interests are reasonably satisfactory to the Administrative Agent) for cash or otherwise receive cash contributions to the capital of the Borrower as cash common Equity Interests or other Equity Interests (provided such other Equity Interests are reasonably satisfactory to the Administrative Agent) (collectively, the “Cure Right”), and upon the receipt by the Borrower of the Net Proceeds of such issuance that are not otherwise applied (the “Cure Amount”) pursuant to the exercise by the Borrower of such Cure Right such Financial Performance Covenant shall be recalculated giving effect to the following pro forma adjustment:
(a) Consolidated EBITDA shall be increased with respect to such applicable fiscal quarter and any four fiscal quarter period that contains such fiscal quarter, solely for the purpose of measuring the Financial Performance Covenant and not for any other purpose under this Agreement, by an amount equal to the Cure Amount;
in clause (b) if, after giving effect to the foregoing pro forma adjustment (without giving effect to any portion of the Cure Amount on the balance sheet of the Borrower and its Restricted Subsidiaries with respect to such fiscal quarter only but with giving pro forma effect to any portion of the Cure Amount applied to any repayment of any Indebtedness), the Borrower and its Restricted Subsidiaries shall then be in compliance with the requirements of the Financial Performance Covenants, the Borrower and its Restricted Subsidiaries shall be deemed to have satisfied the requirements of the Financial Performance Covenant as of the relevant date of determination with the same effect as though there had been no failure to comply therewith at such dateabove, and the applicable breach or default of the Financial Performance Covenant that had provided such assumption has occurred shall be deemed cured for the purposes of this Agreement; and
(c) Notwithstanding anything herein to the contrarywithin such period, (i) in each four consecutive fiscal quarter period of the Borrower there shall be at least two fiscal quarters in which the Cure Right is not exercised, (ii) during the term of this Agreement, the Cure Right Investor shall not be exercised more than five timesentitled to terminate the Agreement as a result of such Default. If Collateral Agent or its successor(s), (iiiassignee(s) and/or designee(s) is prohibited by any court order or bankruptcy or insolvency proceedings involving the Cure Amount Obligors from curing the Default or from commencing or prosecuting such proceedings, the foregoing time periods shall be no greater than extended by the amount required for purposes period of complying with the Financial Performance Covenant and any amounts in excess thereof such prohibition; provided, however, that such additional cure periods shall not be deemed to be a Cure Amount and (iv) the Lenders shall not be required to make a Loan or issue, amend, renew in any way amend or extend any Letter of Credit unless and until date specific condition precedent in the Borrower has received the Cure Amount required to cause the Borrower and the Restricted Subsidiaries to be in compliance with the Financial Performance Covenants. Notwithstanding any other provision in this Agreement to the contrary, the Cure Amount received pursuant to any exercise of the Cure Right shall be disregarded for purposes of determining the Available Amount, the Available Equity Amount, any financial ratio-based conditions or tests, pricing or any available basket under Article VI of this Agreement.
Appears in 2 contracts
Samples: Equity Contribution and Purchase Agreement (First Wind Holdings Inc.), Equity Contribution and Purchase Agreement (First Wind Holdings Inc.)
Right to Cure. (a) Notwithstanding anything to the contrary contained in Section 7.01, in the event that the Borrower and its Restricted Subsidiaries fail to comply with the requirements of the Financial Performance Covenant as of the last day of any applicable fiscal quarter of the Borrower, at any time after the beginning end of such fiscal quarter and until the expiration of the 10th tenth (10th) Business Day following subsequent to the date on which the financial statements with respect to such fiscal quarter (or the fiscal year ended on the last day of such fiscal quarter) are required to be delivered pursuant to Section 5.01(a) or Section 5.01(b(b), as applicable (such period, the Borrower or any Parent Entity thereof “Cure Period”), Holdings shall have the right to issue common Equity Interests or other Qualified Equity Interests (provided such other Equity Interests are reasonably satisfactory than to the Administrative AgentBorrower or a Subsidiary and other than New Holdings Preferred Equity) for cash or otherwise receive cash contributions to the capital of Holdings (other than from the Borrower or a Subsidiary) as cash common Equity Interests equity or other Qualified Equity Interests (provided such other Equity Interests are reasonably satisfactory than New Holdings Preferred Equity) (which, in either case, Holdings shall contribute as cash common equity to the Administrative AgentBorrower) (collectively, the “Cure Right”), and upon the receipt by the Borrower of 100% of the Net Proceeds cash proceeds of such issuance that are not otherwise applied (the “Cure Amount”) pursuant to the exercise by the Borrower Holdings of such Cure Right such the Financial Performance Covenant shall be recalculated giving effect to the following pro forma adjustment:
(ai) Consolidated EBITDA shall be increased with respect to such applicable fiscal quarter and any four (4) fiscal quarter period that contains such fiscal quarter, solely for the purpose of measuring actual (as opposed to pro forma) compliance with the Financial Performance Covenant and not for any other purpose under this Agreement, by an amount equal to the Cure Amount;; and
(bii) if, after giving effect to the foregoing pro forma adjustment (without giving effect to any repayment of any Indebtedness with any portion of the Cure Amount or any portion of the Cure Amount on the balance sheet of the Borrower and its Restricted Subsidiaries with respect to such fiscal quarter only but with giving pro forma effect to any portion of the Cure Amount applied to any repayment of any IndebtednessSubsidiaries), the Borrower and its Restricted Subsidiaries shall then be in compliance with the requirements of the Financial Performance CovenantsCovenant, the Borrower and its Restricted Subsidiaries shall be deemed to have satisfied the requirements of the Financial Performance Covenant as of the relevant date of determination with the same effect as though there had been no failure to comply therewith at such date, and the applicable breach or default Default or Event of Default of the Financial Performance Covenant that had occurred shall be deemed cured for the purposes of this Agreement; andprovided that the Borrower shall have notified the Administrative Agent of the exercise of such Cure Right within five (5) Business Days prior to the issuance of the relevant Qualified Equity Interests for cash or the receipt of the cash contributions by Holdings.
(cb) Notwithstanding anything herein to the contrary, (i) in each four (4) consecutive fiscal quarter period of the Borrower there shall be at least two (2) fiscal quarters in which the Cure Right is not exercised, (ii) during the term of this Agreement, the Cure Right shall not be exercised more than five times, (5) times and (iii) for purposes of this Section 7.02, the Cure Amount shall be no greater than the amount required for purposes of complying with the Financial Performance Covenant and any amounts in excess thereof shall not be deemed to be a Cure Amount and (iv) the Lenders shall not be required to make a Loan or issue, amend, renew or extend any Letter of Credit unless and until the Borrower has received the Cure Amount required to cause the Borrower and the Restricted Subsidiaries to be in compliance with the Financial Performance CovenantsAmount. Notwithstanding any other provision in this Agreement to the contrary, (i) no increase in Consolidated EBITDA on account of the exercise of any Cure Right shall be applicable for any other purpose under this Agreement or any other Loan Document, including determining pricing, the availability or amount of any covenant basket, carve-out or compliance on a Pro Forma Basis with the Financial Performance Covenant or any other financial ratio and (ii) there shall be no pro forma or other reduction of Indebtedness (including any Loans and including by way of cash netting) as a result of any Cure Amount in determining the Financial Performance Covenant (or any other leverage based test) for the applicable fiscal quarter in respect of which such Cure Right is exercised and for any subsequent period that includes such fiscal quarter (except, in the case of any such subsequent fiscal quarter, to the extent that all or any portion of such Cure Amount is actually used to permanently prepay or otherwise permanently reduce Indebtedness).
(c) For the avoidance of doubt, no Revolving Lender, Swing Line Lender or Issuing Bank, as applicable, shall be required to fund any Revolving Loans or Swing Loans, or issue (or increase) any Letters of Credit, as applicable, during such Cure Period.
(d) Upon receipt by the Administrative Agent of a written notice, prior to the end of the applicable Cure Period, that Holdings intends to exercise the Cure Amount received Right in respect of a fiscal quarter, none of the Administrative Agent, the Collateral Agent or the Lenders shall be permitted to accelerate Loans held by them, to terminate the Commitments or to exercise remedies against the Collateral solely on the basis of a failure to comply with the requirements of the Financial Performance Covenant, unless such failure is not cured pursuant to any the exercise of the Cure Right shall be disregarded for purposes on or prior to the end of determining the Available Amount, the Available Equity Amount, any financial ratio-based conditions or tests, pricing or any available basket under Article VI of this Agreementapplicable Cure Period.
Appears in 2 contracts
Samples: Credit Agreement (Atlas Technical Consultants, Inc.), Credit Agreement (Atlas Technical Consultants, Inc.)
Right to Cure. Notwithstanding anything to the contrary contained in Section 7.01Article VIII, in the event that the Borrower and its Restricted Subsidiaries fail fails to comply with the requirements of the Financial Performance Covenant as of the last day of any fiscal quarter of the BorrowerCovenants, at any time after the beginning of such fiscal quarter then until the expiration of the 10th tenth Business Day following the last date on which the financial statements with Compliance Certificate in respect to such fiscal quarter (or of the fiscal year ended on the last day of such fiscal quarter) are applicable Fiscal Quarter is required to be delivered pursuant to Section 5.01(a6.1(d) or such last date on which the Liquidity Certificate in respect of the applicable calendar month is required to be delivered pursuant to Section 5.01(b6.1(g), the Borrower or any Parent Entity thereof shall Permitted Holders have the right to issue purchase Capital Stock (other than Disqualified Stock) of any Upper Tier Entity, to contribute additional common Equity Interests or other Equity Interests (provided equity capital in respect of their existing Capital Stock of any Upper Tier Entity and make payment for such other Equity Interests are reasonably satisfactory to the Administrative Agent) for Capital Stock in cash or otherwise receive cash make such capital contributions to within 10 Business Days following such last date on which the capital Compliance Certificate in respect of the Borrower as cash common Equity Interests applicable Fiscal Quarter is required to be delivered pursuant to Section 6.1(d) or other Equity Interests (provided such other Equity Interests are reasonably satisfactory last date on which the Liquidity Certificate in respect of the applicable calendar month is required to the Administrative Agentbe delivered pursuant to Section 6.1(g) (collectively, the “Cure Right”); provided that such Upper Tier Entity shall immediately upon receipt of such payment contribute 100% of such payment as common equity to the capital of Holdings, which shall contribute 100% of such payment as common equity to the capital of Borrower, and upon the receipt by the Borrower of the Net Proceeds of such issuance that are not otherwise applied cash contribution (the “Cure AmountSpecified Equity Contribution”) pursuant to the exercise by the Borrower Permitted Holders, such Upper Tier Entity and Holdings of such Cure Right such Financial Performance Covenant Right, (i) either Liquidity or Consolidated EBITDA, as the case may be, shall be recalculated giving effect to the following pro forma adjustment:
(a) Consolidated EBITDA shall be increased with respect to such applicable fiscal quarter and any four fiscal quarter period that contains such fiscal quarterincreased, solely for the purpose of measuring determining compliance with the Financial Performance Covenant Covenants with respect to any measurement period that includes the Fiscal Quarter or calendar month, as applicable, for which the Cure Right was exercised, and not for any other purpose under this Agreement, by an amount equal to the amount of the Specified Equity Contribution (the “Cure Amount;
”) or (bii) ifor in the case of an exercise of the Cure Right in respect of the Financial Covenant set forth in Section 7.5(a), such Cure Amount shall instead be applied to repay the Loans and reduce Consolidated Debt by the amount of Loans so repaid. If, after giving effect to the foregoing pro forma adjustment (without giving effect to any portion of the Cure Amount on the balance sheet of the recalculations, Borrower and its Restricted Subsidiaries with respect to such fiscal quarter only but with giving pro forma effect to any portion of the Cure Amount applied to any repayment of any Indebtedness), the Borrower and its Restricted Subsidiaries shall then be in compliance with the requirements of the Financial Performance CovenantsCovenants (and shall deliver to Administrative Agent a pro forma Compliance Certificate or Liquidity Certificate, the as applicable, demonstrating such compliance), Borrower and its Restricted Subsidiaries shall be deemed to have satisfied the requirements of complied with the Financial Performance Covenant Covenants as of the relevant date of determination with the same effect as though there had been no failure to comply therewith at such date, and the applicable breach or default of the Financial Performance Covenant Covenants that had occurred shall be deemed cured for the all purposes of this the Agreement; and
(c) Notwithstanding anything herein provided, that so long as any Default or Event of Default shall be in existence due to the contrary, (i) in each four consecutive fiscal quarter period failure of the Borrower there Loan Parties to comply with the Liquidity Covenant or CTLR Financial Covenant, none of Administrative Agent, Issuing Lender nor any Lender shall be at least two fiscal quarters in which required to advance any Loans and/or issue any Letters of Credit. Upon Administrative Agent’s receipt of a notice from Holdings or Borrower that Permitted Holders, an Upper Tier Entity and Holdings intend to exercise the Cure Right is not exercised(a “Notice of Intent to Cure”), until the 10th Business Day following the last date required for delivery of the Compliance Certificate under Section 6.1(d) or the delivery of the Liquidity Certificate under Section 6.1(g), as the case may be, to which such Notice of Intent to Cure relates, (iix) during none of Administrative Agent nor any Lender shall exercise the term right to accelerate the Loans, require Cash Collateralization of this Agreement, the Cure Right shall not be exercised more than five times, (iii) the Cure Amount shall be no greater than the amount required for purposes of complying with the Financial Performance Covenant and any amounts in excess thereof shall not be deemed to be a Cure Amount and (iv) the Lenders shall not be required to make a Loan or issue, amend, renew or extend any Letter of Credit unless Usage or terminate the Commitments and until (y) none of Administrative Agent, any other Lender or other Secured Party shall exercise any right to foreclose on or take possession of the Borrower has received Collateral solely on the Cure Amount required to cause basis of an Event of Default having occurred and being continuing as a result of a breach of such Financial Covenant in or as of the Borrower and end of such Fiscal Quarter or calendar month, as applicable (including as a result of any breach of a representation or warranty that the Restricted Subsidiaries to be Loan Parties were in compliance with the Financial Performance Covenants. Notwithstanding any other provision in this Agreement to the contrary, the Cure Amount received pursuant to any exercise Covenants during or as of the end of such Fiscal Quarter or calendar month, as applicable); it being understood that any Default or Event of Default that shall have occurred as a result of the failure to comply with such covenants shall exist for all other purposes under the Loan Documents until such Cure Right shall be disregarded for purposes of determining the Available Amount, the Available Equity Amount, any financial ratio-based conditions or tests, pricing or any available basket under Article VI of this Agreementis exercised.
Appears in 2 contracts
Samples: Credit Agreement (EngageSmart, LLC), Credit Agreement (EngageSmart, LLC)
Right to Cure. (a) Notwithstanding anything to the contrary contained in Sections 8.01 or 8.02, if the Lead Borrower determines that an Event of Default under the covenant set forth in Section 7.09 has occurred or may occur, during the period commencing after the beginning of the last fiscal quarter included in such Test Period and ending ten (10) Business Days after the date on which financial statements are required to be delivered hereunder with respect to such fiscal quarter (the “Cure Expiration Date”), a Specified Equity Contribution may be made to the Lead Borrower (a “Designated Equity Contribution”), and the amount of the net cash proceeds thereof shall be deemed to increase Consolidated EBITDA with respect to such applicable quarter; provided that such net cash proceeds (i) are actually received by the Lead Borrower as cash common equity (including through capital contribution of such net cash proceeds to the Lead Borrower) during the period commencing after the beginning of the last fiscal quarter included in such Test Period by the Lead Borrower and ending on the Cure Expiration Date and (ii) are Not Otherwise Applied. The parties hereby acknowledge that this Section 8.05(a) may not be relied on for purposes of calculating any financial ratios other than as applicable to Section 7.09 and shall not result in any adjustment to any baskets or other amounts other than the amount of the Consolidated EBITDA for the purpose of Section 7.09. Notwithstanding anything to the contrary contained in Section 7.018.01 and Section 8.02, in the event that the Borrower and its Restricted Subsidiaries fail to comply with the requirements (A) upon designation of the Financial Performance Covenant Designated Equity Contribution by the Lead Borrower in an amount necessary to cure any Event of Default under the covenant set forth in Section 7.09, such covenant will be deemed satisfied and complied with as of the last day of any fiscal quarter of the Borrower, at any time after the beginning of such fiscal quarter until the expiration of the 10th Business Day following the date on which the financial statements with respect to such fiscal quarter (or the fiscal year ended on the last day of such fiscal quarter) are required to be delivered pursuant to Section 5.01(a) or Section 5.01(b), the Borrower or any Parent Entity thereof shall have the right to issue common Equity Interests or other Equity Interests (provided such other Equity Interests are reasonably satisfactory to the Administrative Agent) for cash or otherwise receive cash contributions to the capital of the Borrower as cash common Equity Interests or other Equity Interests (provided such other Equity Interests are reasonably satisfactory to the Administrative Agent) (collectively, the “Cure Right”), and upon the receipt by the Borrower of the Net Proceeds of such issuance that are not otherwise applied (the “Cure Amount”) pursuant to the exercise by the Borrower of such Cure Right such Financial Performance Covenant shall be recalculated giving effect to the following pro forma adjustment:
(a) Consolidated EBITDA shall be increased with respect to such applicable fiscal quarter and any four fiscal quarter period that contains such fiscal quarter, solely for the purpose of measuring the Financial Performance Covenant and not for any other purpose under this Agreement, by an amount equal to the Cure Amount;
(b) if, after giving effect to the foregoing pro forma adjustment (without giving effect to any portion of the Cure Amount on the balance sheet of the Borrower and its Restricted Subsidiaries with respect to such fiscal quarter only but with giving pro forma effect to any portion of the Cure Amount applied to any repayment of any Indebtedness), the Borrower and its Restricted Subsidiaries shall then be in compliance with the requirements of the Financial Performance Covenants, the Borrower and its Restricted Subsidiaries shall be deemed to have satisfied the requirements of the Financial Performance Covenant as end of the relevant date of determination fiscal quarter with the same effect as though there had been no failure to comply therewith at with such datecovenant and any Event of Default under such covenant (and any other Default as a result thereof) will be deemed not to have occurred for purposes of the Loan Documents, and (B) from and after the date that the Lead Borrower delivers a written notice to the Administrative Agent that it intends to exercise its cure right under this Section 8.05 neither the Administrative Agent nor any Lender may exercise any rights or remedies under Section 8.02 (or under any other Loan Document) on the basis of any actual or purported Event of Default under the covenant set forth in Section 7.09 with respect to such quarter (and any other Default as a result thereof), and the applicable breach or default of the Financial Performance Covenant that had occurred Borrowers shall be deemed cured permitted to borrow Revolving Credit Loans and Swing Line Loans and make any request for an L/C Credit Extension, until and unless the purposes of this Agreement; andCure Expiration Date has occurred without the Designated Equity Contribution having been designated.
(c) Notwithstanding anything herein to the contrary, (i) in In each period of four consecutive fiscal quarter period of the Borrower quarters, there shall be at least two fiscal quarters in which the Cure Right no Designated Equity Contribution is not exercisedmade, (ii) no more than five Designated Equity Contributions may be made in the aggregate during the term of this Agreement, the Cure Right shall not be exercised more than five times, (iii) the Cure Amount amount of any Designated Equity Contribution shall be no greater more than the amount required to cause the Lead Borrower to be in Pro Forma Compliance with Section 7.09 for any applicable period, (iv) there shall be no pro forma reduction in Indebtedness with the proceeds of any Designated Equity Contribution for determining compliance with Section 7.09 for the fiscal quarter with respect to which such Designated Equity Contribution was made; provided that to the extent such proceeds are actually applied to prepay Indebtedness, such reduction may be credited in any subsequent fiscal quarter and (v) other than as set forth in the proviso to clause (iv) above, no Designated Equity Contribution may be included for purposes of complying with the Financial Performance Covenant and calculating any amounts in excess thereof shall not be deemed to be a Cure Amount and (iv) the Lenders shall not be required to make a Loan or issue, amend, renew or extend any Letter of Credit unless and until the Borrower has received the Cure Amount required to cause the Borrower and the Restricted Subsidiaries to be in financial ratios other than compliance with the Financial Performance Covenants. Notwithstanding Covenant and shall not result in any other provision in this Agreement to the contrary, the Cure Amount received pursuant adjustment to any exercise “baskets” or other amounts other than the amount of the Cure Right shall be disregarded for purposes of determining the Available Amount, the Available Equity Amount, any financial ratio-based conditions or tests, pricing or any available basket under Article VI of this AgreementConsolidated EBITDA referred to in clause (a) above.
Appears in 2 contracts
Samples: Credit Agreement (Bumble Inc.), Credit Agreement (Bumble Inc.)
Right to Cure. Notwithstanding anything to the contrary contained in Section 7.01, in the event that the Borrower Holdings and its Restricted Subsidiaries fail to comply with the requirements of the Financial Performance Covenant as of the last day of any fiscal quarter of the BorrowerHoldings, at any time after the beginning of such fiscal quarter until the expiration of the 10th Business Day following the date on which the financial statements with respect to such fiscal quarter (or the fiscal year ended on the last day of such fiscal quarter) are required to be delivered pursuant to Section 5.01(a5.11(a) or Section 5.01(b5.11(b), the Borrower Holdings or any Parent Entity thereof shall have the right to issue common Equity Interests or other Equity Interests (provided such other Equity Interests are reasonably satisfactory to the Administrative Agent) for cash or otherwise receive cash contributions to the capital of the Borrower Holdings as cash common Equity Interests or other Equity Interests (provided such other Equity Interests are reasonably satisfactory to the Administrative Agent) (collectively, the “Cure Right”), and upon the receipt by the Borrower Holdings of the Net Proceeds of such issuance that are not otherwise applied (the “Cure Amount”) pursuant to the exercise by the Borrower Holdings of such Cure Right such Financial Performance Covenant shall be recalculated giving effect to the following pro forma adjustment:
(a) Consolidated EBITDA shall be increased with respect to such applicable fiscal quarter and any four fiscal quarter period that contains such fiscal quarter, solely for the purpose of measuring the Financial Performance Covenant and not for any other purpose under this Agreement, by an amount equal to the Cure Amount;
(b) if, after giving effect to the foregoing pro forma adjustment (without giving effect to any portion of the Cure Amount on the balance sheet of the Borrower Holdings and its Restricted Subsidiaries with respect to such fiscal quarter only but with giving pro forma effect to any portion of the Cure Amount applied to any repayment of any Indebtedness), the Borrower Holdings and its Restricted Subsidiaries shall then be in compliance with the requirements of the Financial Performance CovenantsCovenant, the Borrower Holdings and its Restricted Subsidiaries shall be deemed to have satisfied the requirements of the Financial Performance Covenant as of the relevant date of determination with the same effect as though there had been no failure to comply therewith at such date, and the applicable breach or default of the Financial Performance Covenant that had occurred shall be deemed cured for the purposes of this Agreement; and
(c) Notwithstanding notwithstanding anything herein to the contrary, (i) in each four consecutive fiscal quarter period of the Borrower Holdings there shall be at least two fiscal quarters in which the Cure Right is not exercised, (ii) during the term of this Agreement, the Cure Right shall not be exercised more than five times, and (iii) the Cure Amount shall be no greater than the amount required for purposes of complying with the Financial Performance Covenant and any amounts in excess thereof shall not be deemed to be a Cure Amount and (iv) the Lenders shall not be required to make a Loan or issue, amend, renew or extend any Letter of Credit unless and until the Borrower Holdings has received the Cure Amount required to cause the Borrower Holdings and the Restricted Subsidiaries to be in compliance with the Financial Performance Covenants. Notwithstanding any other provision Covenant; provided, however, that (I) notwithstanding anything in this Agreement Article VI to the contrary, Holdings shall not make, directly or indirectly, any Restricted Payment (other than Restricted Payments of the type permitted by Section 6.08(a)(iii), (v), (vii), (ix), (x), (xi) or (xiii) of the Endeavor Credit Agreement (with any reference contained in such clauses to “Holdings”, “Intermediate Holdings”, “Intermediate Parent”, any “Borrower” and “Restricted Subsidiaries” deemed to refer to Holdings, any Intermediate Parent, any Borrower and the Restricted Subsidiaries, as applicable, hereunder)) during the period beginning with the end of the Test Period for which such Cure Right is exercised until the first date thereafter on which the First Lien Leverage Ratio of Holdings and its Restricted Subsidiaries for the most recently ended Test Period as of such date on a Pro Forma Basis is not greater than 3.00 to 1.00 and (II) any Cure Amount received pursuant prior to the date of such Restricted Payment, if included in any exercise of the Cure Right Test Period ending on or after such date, shall be disregarded for purposes reduced by the amount of determining the Available Amount, the Available Equity Amount, any financial ratio-based conditions or tests, pricing or any available basket under Article VI of this Agreementsuch Restricted Payment.
Appears in 2 contracts
Samples: Credit Agreement (Endeavor Group Holdings, Inc.), Revolving Credit Agreement (Endeavor Group Holdings, Inc.)
Right to Cure. (a) Notwithstanding anything to the contrary contained in Section 7.01, in the event that the Borrower and its Restricted the Subsidiaries fail to comply with the requirements of the Financial Performance Covenant as of the last day of any fiscal quarter of the Borrower, at any time after the beginning of such fiscal quarter until the expiration of the 10th Business Day following tenth day subsequent to the earlier of (i) the date on which a Compliance Certificate with respect to such fiscal quarter (or the fiscal year ended on the last day of such fiscal quarter) is delivered in accordance with Section 5.01(c) and (ii) the date on which the financial statements with respect to such fiscal quarter (or the fiscal year ended on the last day of such fiscal quarter) are required to be delivered pursuant to Section 5.01(a) or Section 5.01(b(b), the Borrower or any Parent Entity thereof as applicable, Holdings shall have the right to issue common Qualified Equity Interests or other Equity Interests (provided such other Equity Interests are reasonably satisfactory to the Administrative Agent) for cash or otherwise receive cash contributions to the capital of Holdings as cash common equity or other Qualified Equity Interests in a form reasonably acceptable to the Administrative Agent (which Holdings shall contribute through its Subsidiaries of which the Borrower is a Subsidiary to the Borrower as cash common Equity Interests or other Equity Interests (provided such other Equity Interests are reasonably satisfactory to the Administrative Agentequity) (collectively, the “Cure Right”), and upon the receipt by the Borrower of the Net Proceeds of such issuance that are not otherwise applied Not Otherwise Applied (the “Cure Amount”) pursuant to the exercise by the Borrower Holdings of such Cure Right such Right, the Financial Performance Covenant shall be recalculated giving effect to the following pro forma adjustment:
(ai) Consolidated EBITDA shall be increased with respect to such applicable fiscal quarter and any four fiscal quarter period Test Period that contains such fiscal quarter, solely for the purpose of measuring the Financial Performance Covenant and not for any other purpose under this Agreement, by an amount equal to the Cure Amount;; and
(bii) if, after giving effect to the foregoing pro forma adjustment (without giving effect to any repayment of any Indebtedness with any portion of the Cure Amount or any portion of the Cure Amount on the balance sheet of the Borrower and its Restricted Subsidiaries Subsidiaries, in each case, with respect to such fiscal quarter only but with giving pro forma effect to any portion of the Cure Amount applied to any repayment of any Indebtednessonly), the Borrower and its Restricted Subsidiaries shall then be in compliance with the requirements of the Financial Performance CovenantsCovenant, the Borrower and its Restricted Subsidiaries shall be deemed to have satisfied the requirements of the Financial Performance Covenant as of the relevant date of determination with the same effect as though there had been no failure to comply therewith at such date, and the applicable breach or default of the Financial Performance Covenant that had occurred shall be deemed cured for the purposes of this Agreement; andprovided that the Borrower shall have notified the Administrative Agent of the exercise of such Cure Right within five Business Days of the issuance of the relevant Qualified Equity Interests for cash or the receipt of the cash contributions by Holdings.
(cb) Notwithstanding anything herein to the contrary, (i) in each four consecutive fiscal quarter period of the Borrower there shall be at least two fiscal quarters in which the Cure Right is not exercised, (ii) during the term of this Agreement, the Cure Right shall not be exercised more than five times, times and (iii) the Cure Amount shall be no greater than the amount required for purposes of complying with the Financial Performance Covenant and any amounts in excess thereof shall not be deemed to be a Cure Amount and (iv) the Lenders shall not be required to make a Loan or issue, amend, renew or extend any Letter of Credit unless and until the Borrower has received the Cure Amount required to cause the Borrower and the Restricted Subsidiaries to be in compliance with the Financial Performance CovenantsAmount. Notwithstanding any other provision in this Agreement to the contrary, the Cure Amount received pursuant to any exercise of the Cure Right shall be disregarded for purposes of determining the Available Amount, the Available Equity Amount, any financial ratio-based conditions or testscondition, pricing provision or any available basket under Article VI of this Agreement.
Appears in 2 contracts
Samples: Credit Agreement (Camping World Holdings, Inc.), Credit Agreement (Camping World Holdings, Inc.)
Right to Cure. (a) Notwithstanding anything to the contrary contained in Section 7.01, in the event that the Borrower and its Restricted Subsidiaries fail to comply with the requirements of the Financial Performance Covenant Maintenance Covenants as of the last day of any applicable fiscal quarter of the Lead Borrower, at any time after the beginning end of such fiscal quarter until the expiration of the 10th fifteenth (15th) Business Day following subsequent to the date on which the financial statements with respect to such fiscal quarter of the Lead Borrower (or the fiscal year of the Lead Borrower ended on the last day of such fiscal quarterquarter of the Lead Borrower) are required to be delivered pursuant to Section Sections 5.01(a) or Section 5.01(b(b), as applicable (such date, the “Cure Expiration Date”), the Lead Borrower or any Parent Entity thereof shall have the right to issue common Qualified Equity Interests (or other Equity Interests (provided such other Equity Interests are reasonably satisfactory acceptable to the Administrative Agent) for cash or otherwise receive cash contributions to the capital of the Lead Borrower as cash common equity or other Qualified Equity Interests (or other Equity Interests (provided such other Equity Interests are reasonably satisfactory acceptable to the Administrative Agent) (collectively, the “Cure Right”), and upon the receipt by the Borrower of the Net Proceeds of such issuance that are not otherwise applied (the “Cure Amount”) pursuant to the exercise by the Borrower of such Cure Right such the Financial Performance Covenant Maintenance Covenants shall be recalculated giving effect to the following pro forma adjustment:
(ai) Consolidated EBITDA shall be increased with respect to such applicable fiscal quarter and any four fiscal quarter period that contains such fiscal quarter, solely for the purpose of measuring the Financial Performance Covenant Maintenance Covenants and not for any other purpose under this Agreement, by an amount equal to the Cure Amount;; and
(bii) if, after giving effect to the foregoing pro forma adjustment (without giving pro forma effect to any repayment of any Indebtedness with any portion of the Cure Amount and without netting against the calculation of Consolidated Total Indebtedness any portion of the Cure Amount on the balance sheet of the Lead Borrower and its Restricted Subsidiaries Subsidiaries, in each case, with respect to such fiscal quarter only but with giving pro forma effect to any portion of the Cure Amount applied to any repayment of any Indebtednessonly), the Lead Borrower and its Restricted Subsidiaries shall then be in compliance with the requirements of the Financial Performance Maintenance Covenants, the Borrower and its Restricted Subsidiaries shall be deemed to have satisfied the requirements of the Financial Performance Covenant Maintenance Covenants as of the relevant date of determination with the same effect as though there had been no failure to comply therewith at such date, and the applicable breach or default of the Financial Performance Covenant Maintenance Covenants that had occurred shall be deemed cured for the purposes of this Agreement; andprovided that the Borrower shall have notified the Administrative Agent of the exercise of such Cure Right within five (5) Business Days of the issuance of the relevant Qualified Equity Interests for cash or the receipt of the cash contributions by the Borrower (or any other receipt of cash in respect of its Cure Rights).
(cb) Notwithstanding anything herein to the contrary, (i) in each four consecutive fiscal quarter period of the Lead Borrower there shall be at least no more than two (2) fiscal quarters in which the Cure Right is not exercised, (ii) during the term of this Agreement, the Cure Right shall not be exercised more than five times, (5) times and (iii) for purposes of this Section 7.02, the Cure Amount shall be no greater than the amount required for purposes of complying with the Financial Performance Covenant Maintenance Covenants and any amounts in excess thereof shall not be deemed to be a Cure Amount and (iv) the Lenders shall not be required to make a Loan or issue, amend, renew or extend any Letter of Credit unless and until the Borrower has received the Cure Amount required to cause the Borrower and the Restricted Subsidiaries to be in compliance with the Financial Performance CovenantsAmount. Notwithstanding any other provision in this Agreement to the contrary, the Cure Amount received pursuant to any exercise of the Cure Right shall be disregarded for purposes of determining the Available Amount, the Available Equity Amount, any financial ratio-ratio based conditions or tests, pricing or any and/or available basket under Article VI of this AgreementAgreement (and the Cure Amount shall not be credited as an addition to any basket (including the Available Amount or the Available Equity Amount) or for any other calculation). For the avoidance of doubt, no Cure Amounts shall be applied to reduce the Indebtedness of the Borrower and its Subsidiaries on a Pro Forma Basis (whether by “cash netting” or otherwise) for purposes of determining compliance with the Financial Maintenance Covenants for the fiscal quarter with respect to which such Cure Right was made.
(c) [Reserved].
(d) Notwithstanding anything herein to the contrary, neither the Administrative Agent nor any Lender shall exercise the right to accelerate the Loans under the Term Facility or terminate the Commitments and none of the Administrative Agent, any Lender or any other Secured Party shall exercise any right to foreclose on or take possession of the Collateral or the Badcock Collateral or exercise any remedy solely on the basis of an Event of Default having occurred and being continuing with respect to the Financial Maintenance Covenants, in each case, unless such Event of Default is not cured pursuant to the exercise of the applicable Cure Right on or prior to the applicable Cure Expiration Date (except to the extent that the Lead Borrower has confirmed in writing that it does not intend to provide the Cure Amount).
Appears in 2 contracts
Samples: First Lien Credit Agreement (Franchise Group, Inc.), First Lien Credit Agreement (Franchise Group, Inc.)
Right to Cure. (a) Notwithstanding anything to the contrary contained in Section 7.01, in the event that the Borrower and its Restricted Subsidiaries fail to comply with the requirements of the Financial Performance Covenant (if applicable) as of the last day of any applicable fiscal quarter of the Borrower, at any time after the beginning of such fiscal quarter until the expiration of the 10th tenth (10th) Business Day following subsequent to the date on which the financial statements with respect to such fiscal quarter (or the fiscal year ended on the last day of such fiscal quarter) are required to be delivered pursuant to Section 5.01(a) or Section 5.01(b(b), the Borrower or any Parent Entity thereof as applicable, Holdings shall have the right to issue common Qualified Equity Interests or other Equity Interests (provided such other Equity Interests are reasonably satisfactory to the Administrative Agent) for cash or otherwise receive cash contributions to the capital of the Borrower Holdings as cash common Equity Interests equity or other Qualified Equity Interests (provided such which Holdings shall contribute through its subsidiaries as cash common equity or other Qualified Equity Interests are reasonably satisfactory to the Administrative AgentInterests) (collectively, the “Cure Right”), and upon the receipt by the Borrower of the Net Proceeds of such issuance that are not otherwise applied (the “Cure Amount”) pursuant to the exercise by the Borrower Holdings of such Cure Right such the Financial Performance Covenant shall be recalculated giving effect to one of the following pro forma adjustmentadjustments:
(ai) Consolidated EBITDA shall be increased with respect to such applicable fiscal quarter and any four fiscal quarter period that contains such fiscal quarter, solely for the purpose of measuring the Financial Performance Covenant and not for any other purpose under this Agreement, by an amount equal to the Cure Amount;; or
(bii) if, after giving effect to the foregoing pro forma adjustment (without giving effect to any repayment of any Indebtedness with any portion of the Cure Amount or any portion of the Cure Amount on the balance sheet of the Borrower and its Restricted Subsidiaries Subsidiaries, in each case, with respect to such fiscal quarter only but with giving pro forma effect to any portion of the Cure Amount applied to any repayment of any Indebtednessonly), the Borrower and its Restricted Subsidiaries shall then be in compliance with the requirements of contained in the Financial Performance CovenantsCovenant or the Financial Performance Covenant is not applicable for such fiscal quarter, the Borrower and its the Restricted Subsidiaries shall be deemed to have satisfied the requirements of the Financial Performance Covenant as of the relevant date of determination with the same effect as though there had been no failure to comply therewith at such date, and the applicable breach or default of the Financial Performance Covenant that had occurred shall be deemed cured for the purposes of this Agreement; andprovided that the Borrower shall have notified the First Lien Administrative Agent of the exercise of such Cure Right within five (5) Business Days of the issuance of the relevant Qualified Equity Interests for cash or the receipt of the cash contributions by Holdings.
(cb) Notwithstanding anything herein to the contrary, (i) in each four consecutive fiscal quarter period of the Borrower there shall be at least two one (1) fiscal quarters quarter in which the Cure Right is not exercised, (ii) during the term of this Agreement, the Cure Right shall not be exercised more than five times, (5) times and (iii) for purposes of this Section 7.02, the Cure Amount shall be no greater than the amount required for purposes of complying with the Financial Performance Covenant and any amounts in excess thereof shall not be deemed to be a Cure Amount and (iv) the Lenders shall not be required to make a Loan or issue, amend, renew or extend any Letter of Credit unless and until the Borrower has received the Cure Amount required to cause the Borrower and the Restricted Subsidiaries to be in compliance with the Financial Performance CovenantsAmount. Notwithstanding any other provision in this Agreement to the contrary, the Cure Amount received pursuant to any exercise of the Cure Right shall be disregarded for purposes of determining the Available Amount, the Available Equity Amount, any financial ratio-based conditions or tests, pricing or any available basket under Article VI of this Agreement. For the avoidance of doubt, no Cure Amounts shall be applied to reduce the Indebtedness of the Borrower and its Restricted Subsidiaries on a Pro Forma Basis for purposes of determining compliance with the Financial Performance Covenants for the fiscal quarter in which such Cure Right was made and there shall not have been a breach of any covenant under Article VI of this Agreement by reason of having no longer included such Cure Amount in any basket during the relevant period.
Appears in 2 contracts
Samples: Credit Agreement (Sotera Health Co), Credit Agreement (Sotera Health Topco, Inc.)
Right to Cure. (a) Notwithstanding anything to the contrary contained in Section 7.018.01(b), in the event that the Parent Borrower and its Restricted Subsidiaries fail fails to comply with the requirements of the Financial Performance Covenant as of Covenant, from the last day of any fiscal quarter of the Borrower, at any time after the beginning of such fiscal quarter Test Period until the expiration of the 10th fifteenth Business Day following after the date on which the financial statements with respect to the Test Period in which such fiscal quarter (or the fiscal year ended on the last day of such fiscal quarter) covenant is being measured are required to be delivered pursuant to Section 5.01(a) or Section 5.01(b)6.01, the Parent Borrower or may designate any direct equity investment in the Parent Entity thereof shall have Borrower in cash in the right to issue form of common Equity Interests (or other Qualified Equity Interests (provided such other Equity Interests are of the Parent Borrower reasonably satisfactory acceptable to the Administrative Agent) for cash or otherwise receive cash contributions to made during the capital Test Period until the end of the Borrower such time period as cash common Equity Interests or other Equity Interests a Cure Amount (provided such other Equity Interests are reasonably satisfactory to the Administrative Agent) (collectively, the “Cure Right”), and upon the receipt by the Parent Borrower of net cash proceeds corresponding to the Net Proceeds exercise of such issuance that are not otherwise applied the Cure Right (the “Cure Amount”) pursuant to ), the exercise by the Borrower of such Cure Right such Financial Performance Covenant shall be recalculated recalculated, giving effect to the following a pro forma adjustment:
increase to Consolidated EBITDA for such Test Period in an amount equal to such Cure Amount; provided that (ax) such pro forma adjustment to Consolidated EBITDA shall be increased with respect to such applicable fiscal quarter and any four fiscal quarter period that contains such fiscal quarter, given solely for the purpose of measuring determining the existence of a Default or an Event of Default under the Financial Performance Covenant with respect to any Test Period that includes the fiscal quarter for which such Cure Right was exercised and not for any other purpose under this Agreementany Loan Document (including, by an without limitation, for purposes of determining pricing, mandatory prepayments and the availability or amount equal permitted pursuant to any covenant under Article VII) for the quarter with respect to which such Cure Right was exercised and (y) there shall be no reduction in Indebtedness in connection with any Cure Amounts for determining compliance with Section 7.09 and no Cure Amounts will reduce (or count towards) the First Lien Leverage Ratio, the Secured Leverage Ratio or the Total Leverage Ratio for purposes of any calculation thereof, in each case, for the fiscal quarter with respect to which such Cure Right was exercised, except that with respect to fiscal quarters thereafter, such reduction may apply but only to the Cure Amount;extent the proceeds are actually applied to prepay Indebtedness pursuant to Section 2.05(a).
(b) ifIf, after giving effect to the foregoing pro forma adjustment (without giving effect to any portion exercise of the Cure Amount on Right and the balance sheet of the Borrower and its Restricted Subsidiaries with respect recalculations pursuant to such fiscal quarter only but with giving pro forma effect to any portion of the Cure Amount applied to any repayment of any Indebtedness)clause (a) above, the Parent Borrower and its Restricted Subsidiaries shall then be in compliance with the requirements of the Financial Performance CovenantsCovenant during such Test Period (including for purposes of Section 4.02), the Parent Borrower and its Restricted Subsidiaries shall be deemed to have satisfied the requirements of the Financial Performance Covenant as of the relevant date of determination with the same effect as though there had been no failure to comply therewith at such date, and the applicable breach Default or default Event of the Financial Performance Covenant Default under Section 8.01 that had occurred shall be deemed cured for cured; provided that (i) the purposes of this Agreement; and
Cure Right may be exercised on no more than five (c5) Notwithstanding anything herein to the contraryoccasions, (iii) in each four consecutive fiscal quarter period of the Borrower period, there shall be at least two fiscal quarters in respect of which the no Cure Right is not exercised, (ii) during the term of this Agreement, the Cure Right shall not be exercised more than five times, and (iii) with respect to any exercise of the Cure Right, the Cure Amount shall be no greater than the amount required for purposes of complying to cause the Parent Borrower to be in compliance with the Financial Performance Covenant and any amounts Covenant.
(c) Notwithstanding anything in excess thereof this Agreement to the contrary, following the delivery by the Parent Borrower of a written notice to the Administrative Agent of its intent to exercise the Cure Right (x) the Lenders shall not be deemed permitted to be exercise any rights then available as a result of an Event of Default under this Article VIII on the basis of a breach of the Financial Covenant so as to enable the consummation of the Cure Amount Right as permitted under this Section 8.05 and (ivy) the Lenders shall not be required to make a Loan or issue, amend, renew or extend any Letter of Credit Extension and the L/C Issuers shall not be required to make any L/C Credit Extension unless and until the Parent Borrower has received the Cure Amount required to cause the Parent Borrower and the Restricted Subsidiaries to be in compliance with the Financial Performance Covenants. Notwithstanding any other provision in this Agreement to the contrary, the Cure Amount received pursuant to any exercise of the Cure Right shall be disregarded for purposes of determining the Available Amount, the Available Equity Amount, any financial ratio-based conditions or tests, pricing or any available basket under Article VI of this AgreementCovenant.
Appears in 2 contracts
Samples: Credit Agreement (Clear Channel Outdoor Holdings, Inc.), Abl Credit Agreement (Clear Channel Outdoor Holdings, Inc.)
Right to Cure. (a) Notwithstanding anything to the contrary contained in Section 7.018.01 or Section 8.02, in but subject to Sections 8.04(b) and (c), for the event that the Borrower and its Restricted Subsidiaries fail to comply with the requirements purpose of determining whether an Event of Default under the Financial Performance Covenant as of the last day of any fiscal quarter of the Borrower, at any time after the beginning of such fiscal quarter until the expiration of the 10th Business Day following the date on which the financial statements with respect to such fiscal quarter (or the fiscal year ended on the last day of such fiscal quarter) are required to be delivered pursuant to Section 5.01(a) or Section 5.01(b)has occurred, the Borrower may on one or more occasions designate any Parent Entity thereof shall have portion of the right to issue common Net Cash Proceeds from any Permitted Equity Interests Issuance or other Equity Interests (provided such other Equity Interests are reasonably satisfactory of any contribution to the Administrative Agent) for cash or otherwise receive cash contributions to the common equity capital of the Borrower as cash common Equity Interests (or from any other contribution to capital or sale or issuance of any other Equity Interests (provided such other Equity Interests are on terms reasonably satisfactory to the Administrative Agent) (collectively, the “Cure Right”), and upon the receipt by the Borrower of the Net Proceeds of such issuance that are not otherwise applied (the “Cure Amount”) pursuant as an increase to Consolidated EBITDA of the exercise Borrower for the applicable fiscal quarter; provided that
(i) such amounts to be designated are actually received by the Borrower (i) on and after the first Business Day of such Cure Right such Financial Performance Covenant shall be recalculated giving effect the applicable fiscal quarter and (ii) on and prior to the following pro forma adjustment:
tenth (a10th) Consolidated EBITDA shall Business Day after the date on which financial statements are required to be increased delivered with respect to such applicable fiscal quarter and (the “Cure Expiration Date”),
(ii) such amounts to be designated do not exceed the maximum aggregate amount necessary to cure any four Event of Default under the Financial Covenant as of such date; and
(iii) the Borrower will have provided notice to the Administrative Agent on the date such amounts are designated as a “Cure Amount” (it being understood that to the extent such notice is provided in advance of delivery of a Compliance Certificate for the applicable period, the amount of such Net Cash Proceeds that is designated as the Cure Amount may be lower than specified in such notice to the extent that the amount necessary to cure any Event of Default under the Financial Covenant is less than the full amount of such originally designated amount). The Cure Amount used to calculate Consolidated EBITDA for one fiscal quarter period will be used and included when calculating Consolidated EBITDA for each Test Period that contains includes such fiscal quarter, solely . The parties hereby acknowledge that this Section 8.04(a) may not be relied on for the purpose purposes of measuring calculating any financial ratios other than as applicable to the Financial Performance Covenant (and may not be included for purposes of determining any other purpose term hereunder and the availability or amount permitted pursuant to any covenant under this Agreement, by an Article VII) and may not result in any adjustment to any amounts (including the amount equal of Indebtedness) or increase in cash with respect to the fiscal quarter with respect to which such Cure Amount;
(b) ifAmount was made other than the amount of the Consolidated EBITDA referred to in the immediately preceding sentence, after giving effect except to the foregoing pro forma adjustment extent such proceeds are actually applied to prepay Indebtedness under the Facility or the Term Loan Credit Agreement. Notwithstanding anything to the contrary contained in Section 8.01 or Section 8.02, (without giving effect to any portion A) upon designation of the Cure Amount on the balance sheet of by the Borrower and its Restricted Subsidiaries with respect in an amount necessary to such fiscal quarter only but with giving pro forma effect to cure any portion Event of Default under the Cure Amount applied to any repayment of any Indebtedness)Financial Covenant, the Borrower and its Restricted Subsidiaries shall then be in compliance with the requirements of the Financial Performance Covenants, the Borrower and its Restricted Subsidiaries shall Covenant will be deemed to have satisfied the requirements of the Financial Performance Covenant and complied with as of the end of the relevant date of determination fiscal quarter with the same effect as though there had been no failure to comply therewith at such datewith the Financial Covenant and any Event of Default under the Financial Covenant (and any other Default as a result thereof) will be deemed not to have occurred for purposes of the Loan Documents, and (B) from and after the applicable breach date that the Borrower delivers a written notice to the Administrative Agent that it intends to exercise its cure right under this Section 8.04 (a “Notice of Intent to Cure”) neither the Administrative Agent nor any Lender may exercise any rights or default remedies under Section 8.02 (or under any other Loan Document) on the basis of any actual or purported Event of Default under the Financial Performance Covenant that had (and any other Default as a result thereof) until and unless the Cure Expiration Date has occurred shall be deemed cured for without the purposes of this Agreement; andCure Amount having been designated.
(cb) Notwithstanding anything herein to the contrary, (i) in In each period of four consecutive fiscal quarter period of the Borrower quarters, there shall be at least no more than two (2) fiscal quarters in which the Cure Right cure right set forth in Section 8.04(a) is not exercised, .
(iic) There shall be no more than five (5) fiscal quarters in which the cure rights set forth in Section 8.04(a) are exercised during the term of this Agreement, the Cure Right shall not be exercised more than five times, (iii) the Cure Amount shall be no greater than the amount required for purposes of complying with the Financial Performance Covenant and any amounts in excess thereof shall not be deemed to be a Cure Amount and (iv) the Lenders shall not be required to make a Loan or issue, amend, renew or extend any Letter of Credit unless and until the Borrower has received the Cure Amount required to cause the Borrower and the Restricted Subsidiaries to be in compliance with the Financial Performance Covenants. Notwithstanding any other provision in this Agreement to the contrary, the Cure Amount received pursuant to any exercise of the Cure Right shall be disregarded for purposes of determining the Available Amount, the Available Equity Amount, any financial ratio-based conditions or tests, pricing or any available basket under Article VI of this AgreementFacility.
Appears in 2 contracts
Samples: Revolving Credit Agreement (IASIS Healthcare LLC), Revolving Credit Agreement (IASIS Healthcare LLC)
Right to Cure. (a) Notwithstanding anything to the contrary contained in Section 7.018.01(b), in the event that the Borrower and its Restricted Subsidiaries fail fails to comply with the requirements of the Financial Performance Covenant as of Covenant, from the last day of any fiscal quarter of the Borrower, at any time after the beginning of such fiscal quarter Test Period until the expiration of the 10th fifteenth Business Day following after the date on which the financial statements with respect to the Test Period in which such fiscal quarter (or the fiscal year ended on the last day of such fiscal quarter) covenant is being measured are required to be delivered pursuant to Section 5.01(a) or Section 5.01(b)6.01, the Borrower or may designate any Parent Entity thereof shall have direct equity investment in the right to issue Borrower in cash in the form of common Equity Interests (or other Qualified Equity Interests (provided such other Equity Interests are of the Borrower reasonably satisfactory acceptable to the Administrative Agent) for cash or otherwise receive cash contributions to made during the capital Test Period until the end of the Borrower such time period as cash common Equity Interests or other Equity Interests a Cure Amount (provided such other Equity Interests are reasonably satisfactory to the Administrative Agent) (collectively, the “Cure Right”), and upon the receipt by the Borrower of net cash proceeds corresponding to the Net Proceeds exercise of such issuance that are not otherwise applied the Cure Right (the “Cure Amount”) pursuant to ), the exercise by the Borrower of such Cure Right such Financial Performance Covenant shall be recalculated recalculated, giving effect to the following a pro forma adjustment:
increase to Consolidated EBITDA for such Test Period in an amount equal to such Cure Amount; provided that (ax) such pro forma adjustment to Consolidated EBITDA shall be increased with respect to such applicable fiscal quarter and any four fiscal quarter period that contains such fiscal quarter, given solely for the purpose of measuring determining the existence of a Default or an Event of Default under the Financial Performance Covenant with respect to any Test Period that includes the fiscal quarter for which such Cure Right was exercised and not for any other purpose under this Agreementany Loan Document (including, by an without limitation, for purposes of determining pricing, mandatory prepayments and the availability or amount equal permitted pursuant to any covenant under Article VII) for the quarter with respect to which such Cure Right was exercised and (y) there shall be no reduction in Indebtedness in connection with any Cure Amounts for determining compliance with Section 7.09(a) and no Cure Amounts will reduce (or count towards) the First Lien Leverage Ratio, the Secured Leverage Ratio or the Total Leverage Ratio for purposes of any calculation thereof, in each case, for the fiscal quarter with respect to which such Cure Right was exercised, except that with respect to fiscal quarters thereafter, such reduction may apply but only to the Cure Amount;extent the proceeds are actually applied to prepay Indebtedness pursuant to Section 2.05(a).
(b) ifIf, after giving effect to the foregoing pro forma adjustment (without giving effect to any portion exercise of the Cure Amount on Right and the balance sheet of the Borrower and its Restricted Subsidiaries with respect recalculations pursuant to such fiscal quarter only but with giving pro forma effect to any portion of the Cure Amount applied to any repayment of any Indebtedness)clause (a) above, the Borrower and its Restricted Subsidiaries shall then be in compliance with the requirements of the Financial Performance CovenantsCovenant during such Test Period (including for purposes of Section 4.02), the Borrower and its Restricted Subsidiaries shall be deemed to have satisfied the requirements of the Financial Performance Covenant as of the relevant date of determination with the same effect as though there had been no failure to comply therewith at such date, and the applicable breach Default or default Event of the Financial Performance Covenant Default under Section 8.01 that had occurred shall be deemed cured for cured; provided that (i) the purposes of this Agreement; and
Cure Right may be exercised on no more than five (c5) Notwithstanding anything herein to the contraryoccasions, (iii) in each four (4) consecutive fiscal quarter period of the Borrower period, there shall be at least two fiscal quarters in respect of which the no Cure Right is not exercised, (ii) during the term of this Agreement, the Cure Right shall not be exercised more than five times, and (iii) with respect to any exercise of the Cure Right, the Cure Amount shall be no greater than the amount required for purposes of complying to cause the Borrower to be in compliance with the Financial Performance Covenant and any amounts Covenant.
(c) Notwithstanding anything in excess thereof this Agreement to the contrary, following the delivery by the Borrower of a written notice to the Administrative Agent of its intent to exercise the Cure Right (x) the Lenders shall not be deemed permitted to be exercise any rights then available as a result of an Event of Default under this Article VIII on the basis of a breach of the Financial Covenant so as to enable the consummation of the Cure Amount Right as permitted under this Section 8.05 and (ivy) the Lenders shall not be required to make a Loan or issue, amend, renew or extend any Letter of Credit Extension and the L/C Issuers shall not be required to make any L/C Credit Extension unless and until the Borrower has received the Cure Amount required to cause the Borrower and the Restricted Subsidiaries to be in compliance with the Financial Performance CovenantsCovenant.
(d) In the event the Borrower fails to comply with the Liquidity Covenant as of the last day of any calendar month (the date on which the Minimum Liquidity Certificate is required to be delivered for the relevant fiscal month, the “Liquidity Covenant Trigger Date”), any direct equity investment in the Borrower in cash in the form of common Equity Interests (or other Qualified Equity Interests of the Borrower reasonably acceptable to the Administrative Agent) made during the period commencing on the Liquidity Covenant Trigger Date and through and including the tenth (10th) Business Day immediately following the Liquidity Covenant Trigger Date (the “Liquidity Cure Period”) will be included in the calculation of Liquidity for purposes of determining compliance with the Liquidity Covenant for the applicable calendar month to the extent (i) such amount is held in cash in an amount not less than the amount necessary to cause the Borrower to be in compliance with Section 7.09(b)(i) after giving effect thereto and (ii) such amount is designated as a “Specified Liquidity Equity Contribution” by notice in writing to the Administrative Agent (any such equity contribution so designated and included in the calculation of Liquidity, a “Specified Liquidity Equity Contribution”). Notwithstanding Upon receipt and designation by the Borrower to the Administrative Agent of the applicable Specified Liquidity Equity Contribution, (i) the breach of the Liquidity Covenant shall be deemed retroactively cured with the same effect as though there had been no failure to comply with the Liquidity Covenant, (ii) any Default or Event of Default arising as a result of a breach of Section 7.09(b)(i) shall be deemed not to have occurred for purposes of this Agreement and the other Loan Documents and (iii) none of the Administrative Agent nor any Revolving Credit Lender may exercise any rights or remedies (including any rights or remedies under this Agreement (including under Section 8.01) or any other provision Loan Document or with respect to acceleration of the Loans, termination of Commitments, the imposition of cash interest at the Default Rate or otherwise) on the basis of any actual or purported Default or Event of Default arising as a result of a breach of Section 7.09(b)(i) until and unless, by 11:59 p.m. (New York City time) on the date of the expiration of the Liquidity Cure Period, the Specified Liquidity Equity Contribution shall not have been so received and designated. It is agreed that (i) the amount of any Specified Liquidity Equity Contribution shall constitute a “Cure Amount” for all purposes under this Agreement other than for purposes of clauses (a)-(c) of this Section 8.05, (ii) no Specified Liquidity Equity Contribution shall constitute the exercise of a “Cure Right” for purposes of clauses (a)-(c) of this Section 8.05, and no exercise of a Cure Right shall constitute a “Specified Liquidity Equity Contribution” for purposes of Section 7.09(b)(i) and (iii) notwithstanding anything contained in Section 7.09 or in this Agreement Section 8.05 to the contrary, the Cure Amount received pursuant to any exercise of the Cure Right no Specified Liquidity Equity Contribution shall be disregarded included in the calculation of Consolidated EBITDA for purposes of determining calculating compliance with the Available AmountFinancial Covenant, the Available Equity Amountif then in effect, for any financial ratio-based conditions or tests, pricing or any available basket under Article VI of this AgreementTest Period.
Appears in 2 contracts
Samples: Credit Agreement (Clear Channel Outdoor Holdings, Inc.), Credit Agreement (Clear Channel Outdoor Holdings, Inc.)
Right to Cure. Notwithstanding anything to the contrary contained in Section 7.01, in the event that the Borrower Holdings and its Restricted Subsidiaries fail to comply with the requirements of the Financial Performance Covenant as of the last day of any fiscal quarter of the BorrowerHoldings, at any time after the beginning of such fiscal quarter until the expiration of the 10th Business Day following the date on which the financial statements with respect to such fiscal quarter (or the fiscal year ended on the last day of such fiscal quarter) are required to be delivered pursuant to Section 5.01(a) or Section 5.01(b), the Borrower Holdings or any Parent Entity thereof shall have the right to issue common Equity Interests or other Equity Interests (provided such other Equity Interests are reasonably satisfactory to the Administrative Agent) for cash or otherwise receive cash contributions to the capital of the Borrower Holdings as cash common Equity Interests or other Equity Interests (provided such other Equity Interests are reasonably satisfactory to the Administrative Agent) (collectively, the “Cure Right”), and upon the receipt by the Borrower Holdings of the Net Proceeds of such issuance that are not otherwise applied (the “Cure Amount”) pursuant to the exercise by the Borrower Holdings of such Cure Right such Financial Performance Covenant shall be recalculated giving effect to the following pro forma adjustment:
(a) Consolidated EBITDA shall be increased with respect to such applicable fiscal quarter and any four fiscal quarter period that contains such fiscal quarter, solely for the purpose of measuring the Financial Performance Covenant and not for any other purpose under this Agreement, by an amount equal to the Cure Amount;
(b) if, after giving effect to the foregoing pro forma adjustment (without giving effect to any portion of the Cure Amount on the balance sheet of the Borrower Holdings and its Restricted Subsidiaries with respect to such fiscal quarter only but with giving pro forma effect to any portion of the Cure Amount applied to any repayment of any Indebtedness), the Borrower Holdings and its Restricted Subsidiaries shall then be in compliance with the requirements of the Financial Performance Covenants, the Borrower Holdings and its Restricted Subsidiaries shall be deemed to have satisfied the requirements of the Financial Performance Covenant as of the relevant date of determination with the same effect as though there had been no failure to comply therewith at such date, and the applicable breach or default of the Financial Performance Covenant that had occurred shall be deemed cured for the purposes of this Agreement; and
(c) Notwithstanding anything herein to the contrary, (i) in each four consecutive fiscal quarter period of the Borrower Holdings there shall be at least two fiscal quarters in which the Cure Right is not exercised, (ii) during the term of this Agreement, the Cure Right shall not be exercised more than five times, and (iii) the Cure Amount shall be no greater than the amount required for purposes of complying with the Financial Performance Covenant and any amounts in excess thereof shall not be deemed to be a Cure Amount and (iv) the Lenders shall not be required to make a Loan or issue, amend, renew or extend any Letter of Credit unless and until the Borrower Holdings has received the Cure Amount required to cause the Borrower Holdings and the Restricted Subsidiaries to be in compliance with the Financial Performance Covenants. Notwithstanding any other provision in this Agreement to the contrary, the Cure Amount received pursuant to any exercise of the Cure Right shall be disregarded for purposes of determining the Available Amount, the Available Equity Amount, the Available RP Capacity Amount, any financial ratio-based conditions or tests, pricing or any available basket under Article VI of this AgreementAgreement and there shall not have been a breach of any covenant under Article VI of this Agreement by reason of having no longer included such Cure Amount in any basket during the relevant period.
Appears in 2 contracts
Samples: Credit Agreement (Endeavor Group Holdings, Inc.), Credit Agreement (Endeavor Group Holdings, Inc.)
Right to Cure. Notwithstanding anything In the event of any default by LESSEE under this LEASE that is reasonably susceptible to cure, each LEASEHOLD LENDER will have the contrary same period, commencing upon written notice to each such LEASEHOLD LENDER of such default, to remedy or cause to be remedied the default complained of as LESSEE has hereunder to cure such default, plus an additional sixty (60) days in the case of default in the payment of rent and ninety (90) days in the case of any other default which is capable of being cured by the LEASEHOLD LENDER (such ninety (90) day period will be extended for a reasonable period of time to gain possession of the interest of LESSEE under the LEASE through legal proceedings if necessary to cure such default,) which period will be extended as necessary for a LEASEHOLD LENDER to obtain relief from any stay in a bankruptcy proceeding in which LESSEE is a debtor, and CALTRANS will accept performance by such LEASEHOLD LENDER within the time specified herein as timely performance by LESSEE; provided, however, that (i) nothing contained in Section 7.01, herein will be deemed to impose upon any LEASEHOLD LENDER the obligation to perform any obligation of LESSEE under this LEASE or to remedy any default by LESSEE hereunder and (ii) in the event that the Borrower and its Restricted Subsidiaries fail EASEHOLD LENDER or a third party succeeds to comply with the requirements LESSEE’s interest under this LEASE pursuant to foreclosure of the Financial Performance Covenant LEASEHOLD DEED OF TRUST, exercise of a power of sale thereunder or a deed in lieu thereof, CALTRANS waives, as against the LEASEHOLD LENDER or such third party, any default by LESSEE that is not susceptible to cure by the LEASEHOLD LENDER. Any provision of the last day of any fiscal quarter of the Borrower, at any time after the beginning of such fiscal quarter until the expiration of the 10th Business Day following the date on which the financial statements with respect to such fiscal quarter (or the fiscal year ended on the last day of such fiscal quarter) are required to be delivered pursuant to Section 5.01(a) or Section 5.01(b), the Borrower or any Parent Entity thereof shall have the right to issue common Equity Interests or other Equity Interests (provided such other Equity Interests are reasonably satisfactory this LEASE to the Administrative Agent) for cash contrary notwithstanding, no performance by or on behalf of a LEASEHOLD LENDER will cause it to become a “mortgagee in possession” or otherwise receive cash contributions cause it to the capital of the Borrower as cash common Equity Interests or other Equity Interests (provided such other Equity Interests are reasonably satisfactory to the Administrative Agent) (collectively, the “Cure Right”), and upon the receipt by the Borrower of the Net Proceeds of such issuance that are not otherwise applied (the “Cure Amount”) pursuant to the exercise by the Borrower of such Cure Right such Financial Performance Covenant shall be recalculated giving effect to the following pro forma adjustment:
(a) Consolidated EBITDA shall be increased with respect to such applicable fiscal quarter and any four fiscal quarter period that contains such fiscal quarter, solely for the purpose of measuring the Financial Performance Covenant and not for any other purpose under this Agreement, by an amount equal to the Cure Amount;
(b) if, after giving effect to the foregoing pro forma adjustment (without giving effect to any portion of the Cure Amount on the balance sheet of the Borrower and its Restricted Subsidiaries with respect to such fiscal quarter only but with giving pro forma effect to any portion of the Cure Amount applied to any repayment of any Indebtedness), the Borrower and its Restricted Subsidiaries shall then be in compliance with the requirements of the Financial Performance Covenants, the Borrower and its Restricted Subsidiaries shall be deemed to have satisfied the requirements of the Financial Performance Covenant as of the relevant date of determination with the same effect as though there had been no failure to comply therewith at such date, and the applicable breach or default of the Financial Performance Covenant that had occurred shall be deemed cured for the purposes of this Agreement; and
(c) Notwithstanding anything herein to the contrary, (i) in each four consecutive fiscal quarter period of the Borrower there shall be at least two fiscal quarters in which the Cure Right is not exercised, (ii) during the term of this Agreement, the Cure Right shall not be exercised more than five times, (iii) the Cure Amount shall be no greater than the amount required for purposes of complying with the Financial Performance Covenant and any amounts in excess thereof shall not be deemed to be a Cure Amount and in possession of the PROPERTY or bound by or liable under this LEASE. In addition, the parties agree that if there is more than one (iv1) the Lenders shall not be required to make a Loan LEASEHOLD LENDER (or issuecollateral assignee), amend, renew or extend any Letter of Credit unless and until the Borrower has received the Cure Amount required to cause the Borrower and the Restricted Subsidiaries to be in compliance with the Financial Performance Covenants. Notwithstanding any other provision then all cure periods provided in this Agreement to the contrary, the Cure Amount received pursuant to any exercise of the Cure Right shall be disregarded for purposes of determining the Available Amount, the Available Equity Amount, any financial ratio-based conditions or tests, pricing or any available basket under Article VI of this Agreementparagraph will run concurrently.
Appears in 2 contracts
Samples: Right of Way Use Agreement, Right of Way Use Agreement
Right to Cure. (a) Notwithstanding anything to the contrary contained in Section 7.018.01 or 8.02, in the event that the Borrower and its Restricted Subsidiaries fail fails to comply with the requirements of the Financial Performance Covenant as FinancialLeverage Covenant, then (A) from the end of the last day of any most recently ended fiscal quarter of the Borrower, at any time after the beginning of such fiscal quarter Borrower until the expiration of the 10th tenth Business Day following subsequent to the date on which the financial statements with respect to such fiscal quarter (or the fiscal year ended on the last day of such fiscal quarter) are relevant Compliance Certificate is required to be delivered pursuant to Section 5.01(a6.02(b) or Section 5.01(b(the last day of such period being the “Anticipated Cure Deadline”), the Borrower or any Parent Entity thereof Holdings Topco shall have the right to issue common Equity Interests or other Equity Interests (provided such other Equity Interests are reasonably satisfactory to the Administrative Agent) for cash or otherwise receive cash contributions to the capital of the Borrower as cash common Equity Interests or other Equity Interests (provided such other Equity Interests are reasonably satisfactory to the Administrative Agent) (collectively, the “Cure Right”) to issue common Equity Interests, preferred equity certificates and/or convertible preferred equity certificates (so long as such preferred equity certificates and convertible preferred equity certificates do not constitute Disqualified Stock) or in another form reasonably acceptable to the Blackstone Credit Representative for cash and contribute the proceeds therefrom in the form of common Equity Interests, to the Borrower or obtain a contribution to Holdings Topco’s equity (which shall be in the form of common Equity Interests, preferred equity certificates and/or convertible preferred equity certificates (so long as such preferred equity certificates and convertible preferred equity certificates do not constitute Disqualified Stock) or otherwise in a form reasonably acceptable to the Blackstone Credit Representative (the “Cure Equity”) and contribute the proceeds therefrom in the form of common Equity Interests to the Borrower), and upon the receipt by the Borrower of the Net Proceeds of such issuance that are not otherwise applied cash (the “Cure Amount”) ), pursuant to the exercise by the Borrower of such Cure Right such Financial Performance Right, the calculation of Consolidated EBITDA as used in the FinancialLeverage Covenant shall be recalculated giving effect to the following pro forma adjustmentadjustments:
(ai) Consolidated EBITDA shall be increased with respect to for such applicable fiscal quarter (and for any four fiscal quarter subsequent period that contains includes such fiscal quarter) shall be increased, solely for the purpose of measuring the Financial Performance FinancialLeverage Covenant and not for any other purpose under this AgreementAgreement (including but not limited to determining the availability or amount of any covenant baskets or carve-outs (including the determination of amounts available under Section 7.05) or determining the Applicable Commitment Fee or Applicable Rate, provided that, in determining the Applicable Commitment Fee or the Applicable Rate, effect shall be given to the relevant Cure Amount for purposes of clause (y) in the respective definitions thereof, such that no Event of Default shall be deemed to have occurred and be continuing), by an amount equal to the Cure Amount;; provided that (1) the receipt by the Borrower of the Cure Amount pursuant to the Cure Right shall be deemed to have no other effect whatsoever under this Agreement (including but not limited to determining the availability or amount of any covenant baskets or carve-outs or determining the Applicable Commitment Fee or Applicable Rate, provided that, in determining the Applicable Commitment Fee or the Applicable Rate, effect shall be given to the relevant Cure Amount for purposes of clause (y) in the respective definitions thereof, such that no Event of Default shall be deemed to have occurred and be continuing) and (2) no Cure Amount shall reduce Indebtedness on a Pro Forma Basis for the applicable period for purposes of calculating the FinancialLeverage Covenant or calculating the First Lien Net Leverage Ratio, nor shall any Cure Amount held by the Borrower Parties qualify as “unrestricted cash or Cash Equivalents of the Borrower Parties” for the purposes of calculating any net obligations or liabilities under the terms of this Agreement; and
(bii) if, after giving effect to the foregoing pro forma adjustment (without giving effect to any portion of the Cure Amount on the balance sheet of the Borrower and its Restricted Subsidiaries with respect to such fiscal quarter only but with giving pro forma effect to any portion of the Cure Amount applied to any repayment of any Indebtedness)recalculations, the Borrower and its Restricted Subsidiaries shall then be in compliance with the requirements of the Financial Performance CovenantsFinancialLeverage Covenant, the Borrower and its Restricted Subsidiaries shall be deemed to have satisfied the requirements of the Financial Performance FinancialLeverage Covenant as of the relevant date of determination with the same effect as though there had been no failure to comply therewith at such date, and the applicable breach or default of the Financial Performance FinancialLeverage Covenant that had occurred shall be deemed cured for the purposes of this AgreementAgreement (and any other Default or Event of Default as a result thereof, including the failure to meet any condition requiring no Default or Event of Default based solely on the basis of any actual or purported Event of Default under the FinancialLeverage Covenant); and
(ciii) upon receipt by the Administrative Agent of written notice, on or prior to the Anticipated Cure Deadline, that the Borrower intends to exercise the Cure Right in respect of a fiscal quarter, the Lenders and in the case of clause (ii) below, the L/C Issuers (i) shall not be permitted to accelerate Loans held by them, to terminate the Revolving Credit Commitments held by them or to exercise remedies against the Collateral on the basis of a failure to comply with the requirements of the FinancialLeverage Covenant, unless such failure is not cured pursuant to the exercise of the Cure Right on or prior to the Anticipated Cure Deadline and (ii) shall not be obligated to make any Credit Extension under the Revolving Credit Facility.
(b) Notwithstanding anything herein to the contrary, (i) in each four consecutive fiscal fiscal-quarter period of the Borrower there shall be at least two fiscal quarters in respect of which the Cure Right is not exercised, (ii) there can be no more than five fiscal quarters in respect of which the Cure Right is exercised during the term of the Facilities and (iii) for purposes of this AgreementSection 8.03, the Cure Right shall not be exercised more than five times, (iii) the Cure Amount utilized shall be no greater than the minimum amount required for purposes of complying to remedy the applicable failure to comply with the Financial Performance Covenant and any amounts in excess thereof shall not be deemed to be a Cure Amount and (iv) the Lenders shall not be required to make a Loan or issue, amend, renew or extend any Letter of Credit unless and until the Borrower has received the Cure Amount required to cause the Borrower and the Restricted Subsidiaries to be in compliance with the Financial Performance Covenants. Notwithstanding any other provision in this Agreement to the contrary, the Cure Amount received pursuant to any exercise of the Cure Right shall be disregarded for purposes of determining the Available Amount, the Available Equity Amount, any financial ratio-based conditions or tests, pricing or any available basket under Article VI of this AgreementFinancialLeverage Covenant.
Appears in 2 contracts
Samples: Credit Agreement (KLDiscovery Inc.), Credit Agreement (KLDiscovery Inc.)
Right to Cure. Notwithstanding anything to the contrary contained in Section 7.015.4 and subject to Section to 5.1(q), in the event that the Borrower and its Restricted Subsidiaries fail to comply with the requirements of the any Financial Performance Covenant as of the last day of any fiscal quarter of the Borrower, at any time after the beginning of such fiscal quarter until the expiration of the 10th 15 Business Day period following the date on which the financial statements with respect to such fiscal quarter (or the fiscal year ended on the last day of such fiscal quarter) are required to be delivered pursuant to Section 5.01(a5.1(a)(i) or Section 5.01(b5.1(a)(ii), the Borrower as applicable, Holdings or any Parent Entity thereof (including Parent) shall have the right to issue common Equity Interests or other Equity Interests (provided such other Equity Interests are reasonably satisfactory to the Administrative Agent) for cash or otherwise receive cash contributions to the capital of Holdings or any Parent Entity as cash common equity or other Equity Interests in a form reasonably acceptable to the Required Purchasers (which Holdings or such Parent Entity shall contribute through its Subsidiaries of which the Borrower is a Subsidiary to the Borrower as cash common Equity Interests or other Equity Interests (provided such other Equity Interests are reasonably satisfactory to the Administrative Agentequity) (collectively, the “Cure Right”), and upon the receipt by the Borrower of the Net Proceeds of such issuance that are not otherwise applied Not Otherwise Applied (the “Cure Amount”) pursuant to the exercise by the Borrower of such Cure Right such the applicable Financial Performance Covenant shall be recalculated giving effect to the following pro forma adjustment:
(a) Consolidated EBITDA Available Cash of the Borrower and its Subsidiaries shall be increased with respect to such applicable fiscal quarter and any four fiscal quarter period that contains such fiscal quarter, solely for the purpose of measuring the Financial Performance Covenant set forth in Section 5.1(i)(i) and not for any other purpose under this Agreement, by an amount equal to the Cure Amount;
(b) if, after giving effect to the foregoing pro forma adjustment (without giving effect to any portion of the Cure Amount on the balance sheet of the Borrower and its Restricted Subsidiaries with respect to such fiscal quarter only but with giving pro forma effect to any portion of the Cure Amount applied to any repayment of any Indebtedness)adjustment, the Borrower and its Restricted Subsidiaries shall then be in compliance with the requirements of the applicable Financial Performance CovenantsCovenant, the Borrower and its Restricted Subsidiaries shall be deemed to have satisfied the requirements of the applicable Financial Performance Covenant as of the relevant date of determination with the same effect as though there had been no failure to comply therewith at such date, and the applicable breach or default of the applicable Financial Performance Covenant that had occurred shall be deemed cured for the purposes of this Agreement; and
(c) Notwithstanding notwithstanding anything herein to the contrary, (i) in each four consecutive fiscal quarter period of the Borrower there shall be at least two fiscal quarters in which the Cure Right is not exercised, (ii) during the term of this Agreement, the Cure Right shall not be exercised more than five times, (iii) the Cure Amount shall be no greater than the amount required for purposes of complying with the applicable Financial Performance Covenant and any amounts in excess thereof shall not be deemed to be a Cure Amount and Amount, (iv) there shall be no pro forma reduction in Indebtedness (by netting or otherwise) with the Lenders proceeds of the Cure Amount for determining compliance with the applicable Financial Performance Covenant for the fiscal quarter for which such Cure Amount is deemed applied, except to the extent that such proceeds are actually applied to repay Indebtedness and (v) the Purchasers shall not be required to make a Loan or issue, amend, renew or extend any Letter of Credit purchase Notes unless and until the Borrower has received the Cure Amount required to cause the Borrower and the Restricted Subsidiaries to be in compliance with the applicable Financial Performance CovenantsCovenant. Notwithstanding any other provision in this Agreement to the contrary, the Cure Amount received pursuant to any exercise of the Cure Right shall be disregarded for purposes of determining the Available Amount, the Available Equity Amount, any financial ratio-based conditions or tests, pricing or any available basket under Article VI Section 5.2 of this Agreement.
Appears in 2 contracts
Samples: Note Purchase Agreement (Vacasa, Inc.), Note Purchase Agreement (Vacasa, Inc.)
Right to Cure. Notwithstanding anything to the contrary contained in Section 7.01, in the event that the Borrower and its Restricted Subsidiaries fail fails to comply with the requirements of the Financial Performance Maintenance Covenant as of the last day of any fiscal quarter of the BorrowerTest Period, at any time after the beginning of such fiscal quarter period until the expiration of the 10th fifteenth Business Day following subsequent to the date on which the financial statements with respect to such fiscal quarter (or the fiscal year ended on the last day of such fiscal quarter) Test Period are required to be delivered pursuant to Section 5.01(a) or Section 5.01(b), as applicable, the Borrower or any Parent Entity thereof shall have the right to issue common Qualified Equity Interests or other Equity Interests (provided such other Equity Interests are reasonably satisfactory to the Administrative AgentAgent (each such issuance taken pursuant to and in accordance with this Section 7.02, a “Specified Equity Issuance”) for cash or otherwise receive cash contributions to the capital of the Borrower Holdings as cash common equity or other Qualified Equity Interests or other Equity Interests (provided such other Equity Interests are reasonably satisfactory to the Administrative Agent) , in each case, which are contributed to the Borrower in the form of cash (collectively, the “Cure Right”), and upon the receipt by the Borrower of the Net Proceeds of such issuance that are not otherwise applied (the “Cure Amount”) pursuant to the exercise by the Borrower of such Cure Right such Right, the satisfaction of the RC Facility Test Condition or the Financial Performance Covenant Maintenance Covenant, as applicable, shall be recalculated giving effect to the following pro forma adjustment:
(a) at the option of the Borrower, either (i) the amount calculated pursuant to the definition of “RC Facility Test Condition” shall be reduced and/or (ii) Consolidated EBITDA shall be increased increased, in each case with respect to the foregoing clauses (i) and (ii), (x) solely with respect to such applicable fiscal quarter and any four fiscal quarter period that contains such fiscal quarter, solely (y) for the purpose of measuring the Financial Performance Maintenance Covenant and not for any other purpose under this Agreement, Agreement and (z) by an amount equal to the Cure Amount;
(b) if, after giving effect to the foregoing pro forma adjustment recalculation (without giving effect netting against the calculation of Consolidated First Lien Net Debt (or any component definition thereof), with respect to such fiscal quarter and any four fiscal quarter period that contains such fiscal quarter, any portion of the Cure Amount on the balance sheet of the Borrower and its Restricted Subsidiaries without giving pro forma effect, with respect to such fiscal quarter only but with giving pro forma effect and any four fiscal quarter that contains such fiscal quarter, to any portion of the Cure Amount applied to any repayment of any IndebtednessIndebtedness in connection therewith, except to the extent of any actual repayment), either (i) the RC Facility Test Condition shall cease to be satisfied, then in such case, the Financial Maintenance Covenant shall cease to be in effect and shall not be required to be tested with respect to the applicable fiscal quarter or (ii) the Borrower and its Restricted Subsidiaries shall then be in compliance with the requirements of the Financial Performance CovenantsMaintenance Covenant, then in such case, the Borrower and its Restricted Subsidiaries shall be deemed to have satisfied the requirements of the Financial Performance Maintenance Covenant as of the relevant date of determination with the same effect as though there had been no failure to comply therewith at such date, and the applicable breach or default of the Financial Performance Maintenance Covenant that had occurred (and any other Default or Event of Default as a result thereof) shall be deemed cured for the purposes of this Agreement; and;
(c) Notwithstanding upon the Administrative Agent’s receipt of a written notice from the Borrower (or telephonic notice promptly confirmed thereafter by delivery of a written notice) that the Borrower intends to exercise the Cure Right (a “Notice of Intent to Cure”), until the fifteenth Business Day following the date on which financial statements for the fiscal quarter to which such Notice of Intent to Cure relates are required to be delivered pursuant to Section 5.01(a) or (b), as applicable, neither the Administrative Agent (nor any sub-agent therefor) nor any RC Facility Lender shall exercise any right to accelerate the RC Facility Loans, terminate the RC Facility Commitments or demand Cash Collateral, and none of the Administrative Agent (nor any sub-agent therefor) nor any RC Facility Lender or Secured Party in respect of the RC Facility shall exercise any right to foreclose on or take possession of the Collateral or any other right or remedy under the Loan Documents, in each case, solely on the basis of the relevant failure to comply with Section 6.10;
(d) notwithstanding anything herein to the contrary, (i) in each four consecutive fiscal quarter period of the Borrower there shall be at least two fiscal quarters (which may, but are not required to be, consecutive) in which the Cure Right is not exercised, (ii) during the term of this Agreement, the Cure Right shall not be exercised more than five times, times and (iii) for purposes of this Section 7.02, the Cure Amount shall be no greater than (x) in the case of clause (a)(i) above, the amount required for purposes of causing the RC Facility Test Condition not to be satisfied and (y) in the case of clause (a)(ii) above, the amount required for purposes of complying with the Financial Performance Maintenance Covenant and (or, in any amounts in excess thereof shall not be deemed to be a Cure Amount and (iv) case, if greater, the Lenders shall not be amount required to make a Loan or issue, amend, renew or extend any Letter of Credit unless and until the Borrower has received the Cure Amount required to cause the Borrower and the Restricted Subsidiaries to be in pro forma compliance with the Financial Performance Covenantsany financial covenant with respect to any other Indebtedness that is being cured). Notwithstanding any other provision in this Agreement to the contrary, during any Test Period in which any Cure Amount is included in the calculation of Consolidated EBITDA as a result of any exercise of the Cure Right in accordance with clause (a)(ii) above, the Cure Amount received pursuant to any exercise of the such Cure Right shall be (A) counted solely as an increase to Consolidated EBITDA for the purpose of determining compliance with Section 6.10 (and, to the extent provided for in clause (b) above, a reduction in Indebtedness) and (B) disregarded for purposes of determining the Available Amount, the Available Equity Amount, any financial ratio-based conditions or testsprovisions, pricing or any available basket under Article VI of this Agreement; and
(e) no RC Facility Lender or Issuing Bank shall be required to make any Credit Extension (other than any amendment, modification, renewal or extension of a Letter of Credit that does not increase the face amount thereof) from and after earlier of (x) the occurrence of the relevant Event of Default and (y) such time as the Administrative Agent has received the Notice of Intent to Cure unless and until the Cure Amount is actually received.
Appears in 2 contracts
Samples: First Lien Credit Agreement (Clarios International Inc.), First Lien Credit Agreement (Clarios International Inc.)
Right to Cure. (a) Notwithstanding anything to the contrary contained in Section 7.018.01, in for purposes of determining whether any Default or Event of Default resulting from the event that the Borrower and its Restricted Subsidiaries fail failure to comply with the requirements of the perform or observe any Financial Performance Covenant has occurred, as of any date, and at any time during the applicable Fiscal Quarter or on or after the last day of any fiscal quarter of the Borrower, at any time after applicable Fiscal Quarter and on or prior to the beginning of such fiscal quarter until day that is the expiration of the 10th tenth Business Day following after the date on which the financial statements with respect to such fiscal quarter (or the fiscal year ended on the last day of such fiscal quarter) are required to be delivered pursuant to Section 5.01(a6.01(a) or and Section 5.01(b6.01(b), as applicable, with respect to the applicable Fiscal Quarter hereunder (the “Cure Expiration Date”), the Borrower or any Parent Entity thereof shall have the right to issue common Equity Interests Stock (or other Equity Interests (provided such other Equity Interests are Stock of the Borrower reasonably satisfactory acceptable to the Administrative Agent) for cash or otherwise receive direct equity contributions in cash contributions to the capital (any such net cash proceeds of the Borrower as such issuance or contribution, excluding such net cash common proceeds of such issuance or contribution of Disqualified Stock, a “Specified Equity Interests or other Equity Interests (provided such other Equity Interests are reasonably satisfactory to the Administrative Agent) (collectively, the “Cure RightContribution”), and upon the receipt by the Borrower of the Net Proceeds of Specified Equity Contribution, the Financial Covenants shall be recalculated, giving effect to a pro forma increase to EBITDA for such issuance Fiscal Quarter and each subsequent period that are not otherwise applied includes such Fiscal Quarter (the “Cure AmountRight”).
(b) pursuant The right to make a Specified Equity Contribution is subject to the following conditions: (i) no more than two Specified Equity Contributions may be made in any period of four consecutive Fiscal Quarters, (ii) no more than two Specified Equity Contributions may be made prior to the Revolving Credit Facility Termination Date, (iii) the net cash proceeds of any Specified Equity Contribution shall be no more than the amount required to cause the Borrower to be in pro forma compliance with the Financial Covenants for any applicable period, (iv) there shall be no pro forma reduction in Indebtedness with the proceeds of any Specified Equity Contribution used to increase EBITDA for determining compliance with the Financial Covenants for the four Fiscal Quarter period ending with the Fiscal Quarter ended immediately prior to the exercise of the Cure Right, (v) all Specified Equity Contributions shall be disregarded for purposes of determining availability or amount under any basket, financial ratio-based conditions or for carve-outs or for any other purposes and (vi) no Specified Equity Contributions held by the Borrower or any of such Cure Right such Financial Performance Covenant its Subsidiaries shall be recalculated giving effect to the following pro forma adjustment:
(a) Consolidated EBITDA shall be increased with respect to such applicable fiscal quarter and any four fiscal quarter period that contains such fiscal quarter, solely qualify as “unrestricted cash” or Cash Equivalents” for the purpose of measuring the Financial Performance Covenant and not for any other purpose under this Agreement, by an amount equal calculating Liquidity.
(c) Notwithstanding anything to the Cure Amount;
contrary contained in Section 7.16, (bA) if, after giving effect to if upon the foregoing pro forma adjustment (without giving effect to any portion exercise of the Cure Amount on the balance sheet of Right the Borrower and its Restricted Subsidiaries with respect to such fiscal quarter only but with giving pro forma effect to any portion of the Cure Amount applied to any repayment of any Indebtedness), the Borrower and its Restricted Subsidiaries shall then be in compliance with the requirements of the Financial Performance Covenants, the Borrower and its Restricted Subsidiaries Financial Covenants shall be deemed to have satisfied the requirements of the Financial Performance Covenant and complied with as of the end of the relevant date of determination Fiscal Quarter with the same effect as though there had been no failure to comply therewith at such datethe Financial Covenants, and any Default or Event of Default related to any failure to comply the applicable Financial Covenants shall be deemed not to have occurred ; provided that no Borrower shall be permitted to borrow Revolving Credit Loans or make any request for the issuance of a Letter of Credit (or the amendment, renewal or extension of an outstanding Letter of Credit) until and unless (x) the Specified Equity Contribution has been received by the Borrower or (y) all such Defaults and Events of Default (or the restrictions contained in this proviso) shall have been waived or cured in accordance with the terms of this Agreement.
(d) Following the delivery by the Borrower of a written notice to the Administrative Agent of its intent to exercise the Cure Right, (x) prior to the Cure Expiration Date, the Administrative Agent and the Lenders shall not be permitted to exercise any rights then available as a result of an Event of Default under this Article VIII on the basis of a breach or default of the Financial Performance Covenant that had occurred shall be deemed cured for so as to enable the purposes consummation of this Agreement; and
(c) Notwithstanding anything herein to the contrary, (i) in each four consecutive fiscal quarter period of the Borrower there shall be at least two fiscal quarters in which the Cure Right is not exercised, as permitted under this Section 8.04 and (iiy) during for the term avoidance of this Agreementdoubt, the Cure Right shall not be exercised more than five times, (iii) the Cure Amount shall be no greater than the amount required for purposes of complying with the Financial Performance Covenant and any amounts in excess thereof shall not be deemed to be a Cure Amount and (iv) the Revolving Credit Lenders shall not be required to make a Loan or issueany Revolving Credit Loans and the L/C Issuers shall not be required to make any L/C Credit Extension, amend, renew or extend any Letter of Credit unless and until the Borrower has received the Cure Amount required to cause a Specified Equity Contribution in an amount that causes the Borrower and the Restricted Subsidiaries to be in compliance with the Financial Performance Covenants. Notwithstanding any other provision in this Agreement , and further subject to the contrary, the Cure Amount received pursuant to any exercise satisfaction of the Cure Right shall be disregarded for purposes of determining the Available Amount, the Available Equity Amount, any financial ratio-based conditions or tests, pricing or any available basket under Article VI of this Agreementset forth in Section 4.03.
Appears in 2 contracts
Samples: Credit Agreement (B. Riley Financial, Inc.), Credit Agreement (Babcock & Wilcox Enterprises, Inc.)
Right to Cure. (a) Notwithstanding anything to the contrary contained in Section 7.018.01 or 8.02, in the event that the Parent Borrower and its Restricted Subsidiaries fail fails to comply with the requirements of the Financial Performance Covenant as of the last day of with respect to any fiscal quarter of the Borrower, at any time after when the beginning Parent Borrower is required to comply with such Financial Covenant pursuant to the terms thereof, then from the first day of such fiscal quarter until the expiration of the 10th fifteenth Business Day following the date on which the financial statements with Compliance Certificate is required to be delivered in respect to of such fiscal quarter pursuant to Section 6.02(a) (or the fiscal year ended on the last day of such fiscal quarter) are required to be delivered pursuant to Section 5.01(a) or Section 5.01(bperiod being the “Anticipated Cure Deadline”), the Parent Borrower or any Parent Entity thereof shall have the right (the “Cure Right”) to issue common Equity Interests Capital Stock or other Equity Interests Qualified Capital Stock (provided such other Equity Interests are or preferred equity or convertible preferred equity reasonably satisfactory acceptable to the Administrative Agent) for cash cash, or obtain a contribution to its equity (which shall be in the form of common equity or Qualified Capital Stock or otherwise receive cash contributions to the capital of the Borrower as cash common Equity Interests or other Equity Interests (provided such other Equity Interests are in form reasonably satisfactory acceptable to the Administrative Agent) (collectively, the “Cure RightEquity”), ) and upon the receipt by the Parent Borrower of the Net Proceeds of net cash proceeds from such issuance that are not otherwise applied Cure Equity (the “Cure Amount”) ), pursuant to the exercise by the Parent Borrower of such Cure Right such Right, the calculation of Consolidated EBITDA as used in the Financial Performance Covenant shall be recalculated giving effect to the following pro forma adjustmentadjustments:
(ai) Consolidated EBITDA shall be increased with respect to for such applicable fiscal quarter (and for any four fiscal quarter subsequent period that contains includes such fiscal quarter) shall be increased, solely for the purpose of measuring the Financial Performance Covenant and not for any other purpose under this Agreement, Agreement (including but not limited to determining the availability or amount of any covenant baskets or carve-outs (including the determination of amounts available under Section 7.05) or determining the Applicable Commitment Fee or Applicable Rate); provided that (1) the receipt by an amount equal the Parent Borrower of the Cure Amount pursuant to the Cure Amount;Right shall be deemed to have no other effect on a consolidated basis under this Agreement (including but not limited to determining the availability or amount of any covenant baskets or carve-outs or determining the Applicable Commitment Fee or Applicable Rate, and (2) no Cure Amount shall reduce Indebtedness on a Pro Forma Basis for the fiscal quarter for which the Cure Right was exercised for purposes of calculating the Financial Covenant (unless such Cure Amount is actually applied to repay such Indebtedness)); and
(bii) if, after giving effect to the foregoing pro forma adjustment (without giving effect to any portion of the Cure Amount on the balance sheet of the Borrower and its Restricted Subsidiaries with respect to such fiscal quarter only but with giving pro forma effect to any portion of the Cure Amount applied to any repayment of any Indebtedness)recalculations, the Parent Borrower and its Restricted Subsidiaries shall then be in compliance with the requirements of the Financial Performance CovenantsCovenant, the Parent Borrower and its Restricted Subsidiaries shall be deemed to have satisfied the requirements of the Financial Performance Covenant as of the relevant date of determination with the same effect as though there had been no failure to comply therewith at such date, and the applicable breach or default of the Financial Performance Covenant that had occurred (and any other Default as a result thereof, including the failure to meet any condition requiring no Default or Event of Default based solely on the basis of any actual or purported Event of Default under the Financial Covenant) shall be deemed cured for the purposes of this Agreement; and
(ciii) no Default or Event of Default shall be deemed to exist from the end of the applicable fiscal quarter until the Anticipated Cure Deadline, and the Lenders (i) shall not be permitted to accelerate Loans held by them, to terminate the Revolving Credit Commitments held by them or to exercise remedies against the Collateral on the basis of a failure to comply with the requirements of the Financial Covenant, unless such failure is not cured pursuant to the exercise of the Cure Right on or prior to the Anticipated Cure Deadline and (ii) shall not be obligated to make any Credit Extension under the Revolving Credit Facility until such Cure Amount has been received by the Parent Borrower.
(b) Notwithstanding anything herein to the contrary, (i) in each four consecutive fiscal fiscal-quarter period of the Borrower there shall be at least no more than two consecutive fiscal quarters in respect of which the Cure Right is not exercised, (ii) there can be no more than five fiscal quarters in respect of which the Cure Right is exercised during the term of the Facilities and (iii) for purposes of this AgreementSection 8.03, the Cure Right shall not be exercised more than five times, (iii) the Cure Amount utilized shall be no greater than the minimum amount required for purposes of complying to remedy the applicable failure to comply with the Financial Performance Covenant.
(c) No Lender shall be required, from the date on which the Compliance Certificate is delivered with respect to the applicable fiscal quarter in which the Parent Borrower fails to comply with the Financial Covenant and any amounts until such Cure Equity is received in excess thereof shall not be deemed to be a Cure Amount and (iv) accordance with the Lenders shall not be required terms of this Section 8.03 or such failure is waived in accordance with Section 10.01, to make a any Revolving Credit Loan or issue, amend, renew extend the expiry date thereof or extend increase the amount of any Letter of Credit unless and until the Borrower has received the Cure Amount required to cause the Borrower and the Restricted Subsidiaries to be in compliance with the Financial Performance Covenants. Notwithstanding any other provision in this Agreement to the contrary, the Cure Amount received pursuant to any exercise of the Cure Right shall be disregarded for purposes of determining the Available Amount, the Available Equity Amount, any financial ratio-based conditions or tests, pricing or any available basket under Article VI of this Agreement.
Appears in 2 contracts
Samples: Credit Agreement (MeridianLink, Inc.), Credit Agreement (MeridianLink, Inc.)
Right to Cure. (1) Notwithstanding anything to the contrary contained in Section 7.018.01 or Section 8.02, in but subject to Sections 8.04(2) and (3), for the event that the Borrower and its Restricted Subsidiaries fail to comply with the requirements purpose of determining whether an Event of Default under the Financial Performance Covenant as of the last day of any fiscal quarter of the Borrower, at any time after the beginning of such fiscal quarter until the expiration of the 10th Business Day following the date on which the financial statements with respect to such fiscal quarter (or the fiscal year ended on the last day of such fiscal quarter) are required to be delivered pursuant to Section 5.01(a) or Section 5.01(b)has occurred, the Borrower may on one or more occasions designate any Parent Entity thereof shall have portion of the right Net Proceeds from any Permitted Equity Issuance or of any contribution to issue the common Equity Interests equity capital of the Borrower (or from any other contribution to capital or sale or issuance of any other Equity Interests (provided such other Equity Interests are on terms reasonably satisfactory to the Administrative Agent) for ), but excluding any proceeds of CapEx Equity and any proceeds of Qualified Capital Contributions that are used to make cash or otherwise receive cash contributions to the capital payments of interest and principal in respect of the Borrower as cash common Equity Interests or other Equity Interests (provided such other Equity Interests are reasonably satisfactory to the Administrative Agent) (collectively, the “Cure Right”), and upon the receipt by the Borrower of the Net Proceeds of such issuance that are not otherwise applied Specified Pari Passu Debt Documents (the “Cure Amount”) pursuant as an increase to the exercise by Consolidated EBITDA of the Borrower of such Cure Right such Financial Performance Covenant shall be recalculated giving effect to for the following pro forma adjustment:applicable fiscal quarter; provided that
(a) Consolidated EBITDA shall such amounts to be increased designated are actually received by the Borrower (i) on and after the first Business Day following the most recently ended fiscal quarter and (ii) on and prior to the tenth (10th) Business Day after the date on which financial statements are required to be delivered with respect to such applicable fiscal quarter and any four fiscal quarter period that contains such fiscal quarter, solely for (the purpose of measuring the Financial Performance Covenant and not for any other purpose under this Agreement, by an amount equal to the “Cure Amount;Expiration Date”),
(b) if, after giving effect such amounts to be designated do not exceed the maximum aggregate amount necessary to cure any Event of Default under the Financial Covenant as of such date and
(c) the Borrower will have provided notice to the foregoing pro forma adjustment Administrative Agent on the date such amounts are designated as a “Cure Amount” (without giving effect it being understood that to the extent such notice is provided in advance of delivery of a Compliance Certificate for the applicable period, the amount of such Net Proceeds that is designated as the Cure Amount may be lower than specified in such notice to the extent that the amount necessary to cure any Event of Default under the Financial Covenant is less than the full amount of such originally designated amount). The Cure Amount used to calculate Consolidated EBITDA for one fiscal quarter will be used and included when calculating Consolidated EBITDA for each Test Period that includes such fiscal quarter. The parties hereby acknowledge that this Section 8.04(1) may not be relied on for purposes of calculating any financial ratios other than as applicable to the Financial Covenant (and may not be included for purposes of determining pricing, mandatory prepayments and the availability or amount permitted pursuant to any portion covenant under Article VII) and may not result in any adjustment to any amounts (including the amount of Indebtedness) or increase in cash with respect to the fiscal quarter with respect to which such Cure Amount was received other than the amount of the Consolidated EBITDA referred to in the immediately preceding sentence. Notwithstanding anything to the contrary contained in Section 8.01 and Section 8.02, (A) upon designation of the Cure Amount on the balance sheet of by the Borrower and its Restricted Subsidiaries with respect in an amount necessary to such fiscal quarter only but with giving pro forma effect to cure any portion Event of Default under the Cure Amount applied to any repayment of any Indebtedness)Financial Covenant, the Borrower and its Restricted Subsidiaries shall then be in compliance with the requirements of the Financial Performance Covenants, the Borrower and its Restricted Subsidiaries shall Covenant will be deemed to have satisfied the requirements of the Financial Performance Covenant and complied with as of the end of the relevant date of determination fiscal quarter with the same effect as though there had been no failure to comply therewith at such date, with the Financial Covenant and any Event of Default under the applicable breach or default Financial Covenant (and any other Default as a result thereof) will be deemed not to have occurred for purposes of the Loan Documents and (B) from and after the date that the Borrower delivers a written notice to the Administrative Agent that it intends to exercise its cure right under this Section 8.04 (a “Notice of Intent to Cure”) neither the Administrative Agent nor any Lender may exercise any rights or remedies under Section 8.02 (or under any other Loan Document) on the basis of any actual or purported Event of Default under the Financial Performance Covenant (and any other Default as a result thereof) until and unless the Cure Expiration Date has occurred without the Cure Amount having been designated; provided, that had occurred no Lenders or Issuing Banks shall be deemed cured for required to honor any proposed Credit Extension until and unless there has occurred a designation of the purposes Cure Amount by the Borrower in an amount necessary to cure any Event of this Agreement; andDefault under the Financial Covenant.
(c2) Notwithstanding anything herein to the contrary, (i) in In each period of four consecutive fiscal quarter period of the Borrower quarters, there shall be at least no more than two (2) fiscal quarters in which the Cure Right cure right set forth in Section 8.04(1) is not exercised, .
(ii3) There shall be no more than five (5) fiscal quarters in which the cure rights set forth in Section 8.04(1) are exercised during the term of this Agreement, the Cure Right shall not be exercised more than five times, (iii) the Cure Amount shall be no greater than the amount required for purposes of complying with the Financial Performance Covenant and any amounts in excess thereof shall not be deemed to be a Cure Amount and (iv) the Lenders shall not be required to make a Loan or issue, amend, renew or extend any Letter of Credit unless and until the Borrower has received the Cure Amount required to cause the Borrower and the Restricted Subsidiaries to be in compliance with the Financial Performance Covenants. Notwithstanding any other provision in this Agreement to the contrary, the Cure Amount received pursuant to any exercise of the Cure Right shall be disregarded for purposes of determining the Available Amount, the Available Equity Amount, any financial ratio-based conditions or tests, pricing or any available basket under Article VI of this AgreementFacility.
Appears in 2 contracts
Samples: Abl Credit Agreement (United States Steel Corp), Abl Credit Agreement (United States Steel Corp)
Right to Cure. (a) Notwithstanding anything to the contrary contained in Section 7.018.01 or 8.02, in the event that the Borrower and its Restricted Subsidiaries fail fails to comply with the requirements of the Financial Performance Covenant as at any time when the Borrower is required to comply with such Financial Covenant pursuant to the terms thereof, then from the end of the last day of any most recently ended fiscal quarter of the Borrower, at any time after the beginning of such fiscal quarter Borrower until the expiration of the 10th fifteenth Business Day following subsequent to the date on which the financial statements with respect to such fiscal quarter (or the fiscal year ended on the last day of such fiscal quarter) are relevant Compliance Certificate is required to be delivered pursuant to Section 5.01(a6.02(a) or Section 5.01(b(the last day of such period being the “Anticipated Cure Deadline”), the Borrower or any Parent Entity thereof Holdings shall have the right (the “Cure Right”) to issue common Equity Interests Capital Stock (or other Equity Interests (provided such other Equity Interests are preferred equity or convertible preferred equity reasonably satisfactory acceptable to the Administrative Agent) for cash and contribute the proceeds therefrom in the form of common Capital Stock (or in preferred equity or convertible preferred equity reasonably acceptable to the Administrative Agent) to the Borrower or obtain a contribution to its equity (which shall be in the form of common equity or otherwise receive cash contributions to the capital of the Borrower as cash common Equity Interests or other Equity Interests (provided such other Equity Interests are in a form reasonably satisfactory acceptable to the Administrative Agent) (collectively, the “Cure RightEquity”), and upon the receipt by the Borrower of the Net Proceeds of such issuance that are not otherwise applied cash (the “Cure Amount”) ), pursuant to the exercise by the Borrower of such Cure Right such Right, the calculation of Consolidated EBITDA as used in the Financial Performance Covenant shall be recalculated giving effect to the following pro forma adjustmentadjustments:
(ai) Consolidated EBITDA shall be increased with respect to for such applicable fiscal quarter (and for any four fiscal quarter subsequent period that contains includes such fiscal quarter) shall be increased, solely for the purpose of measuring the Financial Performance Covenant and not for any other purpose under this AgreementAgreement (including but not limited to determining the availability or amount of any covenant baskets or carve-outs (including the determination of amounts available under Section 7.05) or determining the Applicable Commitment Fee or Applicable Rate, provided that, in determining the Applicable Commitment Fee or the Applicable Rate, effect shall be given to the relevant Cure Amount for purposes of clause (y) in the respective definitions thereof, such that no Event of Default shall be deemed to have occurred and be continuing), by an amount equal to the Cure Amount;; provided that (1) the receipt by the Borrower of the Cure Amount pursuant to the Cure Right shall be deemed to have no other effect on a consolidated basis under this Agreement (including but not limited to determining the availability or amount of any covenant baskets or carve-outs or determining the Applicable Commitment Fee or Applicable Rate, provided that, in determining the Applicable Commitment Fee or the Applicable Rate, effect shall be given to the relevant Cure Amount for purposes of clause (y) in the respective definitions thereof, such that no Event of Default shall be deemed to have occurred and be continuing) and (2) no Cure Amount shall reduce Indebtedness on a Pro Forma Basis for the fiscal quarter for which the Cure Right was exercised for purposes of calculating the Financial Covenant or calculating the Consolidated First Lien Net Leverage Ratio, the Consolidated Senior Secured Net Leverage Ratio or the Consolidated Total Net Leverage Ratio (whether as a result of a prepayment of the Loans or via netting of such Cure Amount); and
(bii) if, after giving effect to the foregoing pro forma adjustment (without giving effect to any portion of the Cure Amount on the balance sheet of the Borrower and its Restricted Subsidiaries with respect to such fiscal quarter only but with giving pro forma effect to any portion of the Cure Amount applied to any repayment of any Indebtedness)recalculations, the Borrower and its Restricted Subsidiaries shall then be in compliance with the requirements of the Financial Performance CovenantsCovenant, the Borrower and its Restricted Subsidiaries shall be deemed to have satisfied the requirements of the Financial Performance Covenant as of the relevant date of determination with the same effect as though there had been no failure to comply therewith at such date, and the applicable breach or default of the Financial Performance Covenant that had occurred (and any other Default as a result thereof, including the failure to meet any condition requiring no Default or Event of Default based solely on the basis of any actual or purported Event of Default under the Financial Covenant) shall be deemed cured for the purposes of this Agreement; and
(ciii) upon receipt by the Administrative Agent of written notice, on or prior to the Anticipated Cure Deadline, that the Borrower intends to exercise the Cure Right in respect of a fiscal quarter, the Lenders (i) shall not be permitted to accelerate Loans held by them, to terminate the Revolving Credit Commitments held by them or to exercise remedies against the Collateral on the basis of a failure to comply with the requirements of the Financial Covenant, unless such failure is not cured pursuant to the exercise of the Cure Right on or prior to the Anticipated Cure Deadline and (ii) shall not be obligated to make any Credit Extension under the Revolving Credit Facility until such Cure Amount has been received by the Borrower.
(b) Notwithstanding anything herein to the contrary, (i) in each four consecutive fiscal fiscal-quarter period of the Borrower there shall be at least two fiscal quarters in respect of which the Cure Right is not exercised, (ii) there can be no more than five fiscal quarters in respect of which the Cure Right is exercised during the term of the Facilities and (iii) for purposes of this AgreementSection 8.03, the Cure Right shall not be exercised more than five times, (iii) the Cure Amount utilized shall be no greater than the minimum amount required for purposes of complying to remedy the applicable failure to comply with the Financial Performance Covenant and any amounts in excess thereof shall not be deemed to be a Cure Amount and (iv) the Lenders shall not be required to make a Loan or issue, amend, renew or extend any Letter of Credit unless and until the Borrower has received the Cure Amount required to cause the Borrower and the Restricted Subsidiaries to be in compliance with the Financial Performance Covenants. Notwithstanding any other provision in this Agreement to the contrary, the Cure Amount received pursuant to any exercise of the Cure Right shall be disregarded for purposes of determining the Available Amount, the Available Equity Amount, any financial ratio-based conditions or tests, pricing or any available basket under Article VI of this AgreementCovenant.
Appears in 2 contracts
Samples: First Lien Credit Agreement (ZoomInfo Technologies Inc.), First Lien Credit Agreement (ZoomInfo Technologies Inc.)
Right to Cure. (a) Notwithstanding anything to the contrary contained in Section 7.018.1, in the event that the Borrower and its Restricted Subsidiaries shall fail to comply with the requirements of the Financial Performance Covenant as of the last day of any fiscal quarter of the Borrowerquarter, at any time after the beginning end of such fiscal quarter until the expiration of the 10th Business Day following subsequent to the earlier of (i) the date on which a Compliance Certificate with respect to such fiscal quarter (or the fiscal year ended on the last day of such fiscal quarter) is delivered in accordance with Section 5.1(c) and (ii) the date on which the financial statements with respect to such fiscal quarter (or the fiscal year ended on the last day of such fiscal quarter) are required to be delivered pursuant to Section 5.01(a5.1(a) or Section 5.01(b(b), as applicable, the Borrower or any Parent Entity thereof shall have the right to issue common Qualified Equity Interests or other Equity Interests (provided such other Equity Interests are reasonably satisfactory to the Administrative Agent) for cash or otherwise receive cash contributions to the capital of the Borrower as cash common for Qualified Equity Interests or other Equity Interests (provided such other Equity Interests are reasonably satisfactory to the Administrative Agent) (collectively, the “Cure Right”), and upon the receipt by the Borrower of the Net Proceeds net cash proceeds of such issuance that are not otherwise applied (the ““ Cure Amount”) pursuant to the exercise by the Borrower of such Cure Right such the Financial Performance Covenant shall be recalculated giving effect to the following pro forma adjustment:
(ai) Consolidated Adjusted EBITDA shall be increased with respect to such applicable fiscal quarter and any four fiscal quarter period that contains such fiscal quarter, solely for the purpose of measuring the Financial Performance Covenant and not for any other purpose under this Agreement, by an amount equal to the Cure Amount;; and
(bii) if, after giving effect to the foregoing pro forma adjustment (without giving effect to any repayment of any Indebtedness with any portion of the Cure Amount or any portion of the Cure Amount on the balance sheet of the Borrower and its the Restricted Subsidiaries (in each case, with respect to such fiscal quarter only but with giving pro forma effect to any portion of the Cure Amount applied to any repayment of any Indebtednessonly)), the Borrower and its the Restricted Subsidiaries shall then be in compliance with the requirements of the Financial Performance CovenantsCovenant, the Borrower and its Restricted Subsidiaries shall be deemed to have satisfied the requirements of the Financial Performance Covenant as of the relevant date of determination with the same effect as though there had been no failure to comply therewith at such date, and the applicable breach or default Default or Event of Default of the Financial Performance Covenant that had occurred shall be deemed cured for the purposes of this Agreement; and.
(cb) Notwithstanding anything herein to the contrary, (i) in each four consecutive fiscal quarter period of the Borrower there shall be at least two fiscal quarters in which the Cure Right is not exercised, (ii) during the term of this Agreement, the Cure Right shall not be exercised more than five times, four times and (iii) for purposes of this Section 8.2, the Cure Amount shall be no greater than the amount required for purposes of complying with the Financial Performance Covenant and any amounts in excess thereof shall not be deemed to be a Cure Amount and (iv) the Lenders shall not be required to make a Loan or issue, amend, renew or extend any Letter of Credit unless and until the Borrower has received the Cure Amount required to cause the Borrower and the Restricted Subsidiaries to be in compliance with the Financial Performance CovenantsAmount. Notwithstanding any other provision in this Agreement to the contrary, the Cure Amount received pursuant to any exercise of the Cure Right shall be disregarded for all other purposes, such as for purposes of determining the Available Amount, the Available Equity Amount, any financial ratio-based conditions or tests, pricing or applicable Commitment Fee Rate and for purposes of determining any available basket under Article VI of this Agreement. For the avoidance of doubt, in the event that the Borrower shall fail to comply with the requirements of the Financial Performance Covenant as of the last day of any fiscal quarter, an Event of Default shall occur as of such day unless and until such breach is cured pursuant to this Section 8.2.
Appears in 2 contracts
Samples: Revolving Credit and Guaranty Agreement (Fitbit Inc), Revolving Credit and Guaranty Agreement (Fitbit Inc)
Right to Cure. (a) Notwithstanding anything to the contrary contained in Section 7.01, in the event that Holdings and the Borrower and its Restricted Subsidiaries fail to comply with the requirements of the either Financial Performance Covenant as of the last day of any fiscal quarter of the Borrower, at any time on or after the beginning of such fiscal quarter last day until the expiration of the 10th Business Day following day subsequent to the earlier of (i) the date on which a Compliance Certificate with respect to such fiscal quarter (or the fiscal year ended on the last day of such fiscal quarter) is delivered in accordance with Section 5.01(c) and (ii) the date on which the financial statements with respect to such fiscal quarter (or the fiscal year ended on the last day of such fiscal quarter) are required to be delivered pursuant to Section 5.01(a) or Section 5.01(b(b), the Borrower or any Parent Entity thereof as applicable, Holdings shall have the right to issue common Qualified Equity Interests or other Equity Interests (provided such other Equity Interests are reasonably satisfactory to the Administrative Agent) for cash or otherwise receive cash contributions to the capital of Holdings (which Holdings shall contribute through its Subsidiaries of which the Borrower is a Subsidiary to the Borrower as cash common Equity Interests or other Equity Interests (provided such other Equity Interests are reasonably satisfactory to the Administrative Agentequity) (collectively, the “Cure Right”), and upon the receipt by the Borrower of the Net Proceeds of such issuance that are not otherwise applied Not Otherwise Applied and excluding a portion of such Net Proceeds equal to the aggregate amount (if any) of all Restricted Payments made pursuant to Section 6.08(a)(viii) during the 90 day period immediately preceding the Borrower’s receipt of such Net Proceeds (the “Cure Amount”) pursuant to the exercise by the Borrower Holdings of such Cure Right such Financial Performance Covenant shall be recalculated giving effect to the following pro forma adjustment:
(aA) Consolidated EBITDA shall be increased with respect to such applicable fiscal quarter and any four fiscal quarter period that contains such fiscal quarter, solely for the purpose of measuring the Financial Performance Covenant Covenants and not for any other purpose under this Agreement, by an amount equal to the Cure Amount;; and
(bB) ifIf, after giving effect to the foregoing pro forma adjustment (without giving effect to any portion of adjustment, Holdings and the Cure Amount on the balance sheet of the Borrower and its Restricted Subsidiaries with respect to such fiscal quarter only but with giving pro forma effect to any portion of the Cure Amount applied to any repayment of any Indebtedness), the Borrower and its Restricted Subsidiaries shall then be in compliance with the requirements of the Financial Performance Covenants, Holdings and the Borrower and its Restricted Subsidiaries shall be deemed to have satisfied the requirements of the Financial Performance Covenant Covenants as of the relevant date of determination with the same effect as though there had been no failure to comply therewith at such date, and the applicable breach or default of the Financial Performance Covenant Covenants that had occurred shall be deemed cured for the purposes of this Agreement; and.
(cb) Notwithstanding anything herein to the contrary, (i) in each four consecutive fiscal quarter period of the Borrower there shall be at least two fiscal quarters in which the Cure Right is not exercised, (ii) during in each eight consecutive fiscal quarter period of the term of this AgreementBorrower, there shall be at least four fiscal quarters in which the Cure Right shall is not be exercised more than five times, and (iii) for purposes of this Section 7.03, the Cure Amount shall be no greater than the amount required for purposes of complying with the Financial Performance Covenant and any amounts in excess thereof shall not be deemed to be a Cure Amount and (iv) the Lenders shall not be required to make a Loan or issue, amend, renew or extend any Letter of Credit unless and until the Borrower has received the Cure Amount required to cause the Borrower and the Restricted Subsidiaries to be in compliance with the Financial Performance Covenants. Notwithstanding any other provision in this Agreement to the contrary, the Cure Amount received pursuant to any exercise of the Cure Right shall be disregarded for purposes of determining the Available Amount, the Available Equity Amount, any financial ratio-based conditions or tests, pricing or any available basket under Article VI of this Agreement.
Appears in 2 contracts
Samples: Credit Agreement (Skype S.a r.l.), Credit Agreement (Skype S.a r.l.)
Right to Cure. (a) Notwithstanding anything to the contrary contained in Section 7.01, in the event that the Borrower and its Restricted Subsidiaries fail to comply with the requirements of the Financial Performance Covenant Maintenance Covenants as of the last day of any applicable fiscal quarter of the Lead Borrower, at any time after the beginning end of such fiscal quarter until the expiration of the 10th fifteenth (15th) Business Day following subsequent to the date on which the financial statements with respect to such fiscal quarter of the Lead Borrower (or the fiscal year of the Lead Borrower ended on the last day of such fiscal quarterquarter of the Lead Borrower) are required to be delivered pursuant to Section Sections 5.01(a) or Section 5.01(b(b), as applicable (such date, the “Cure Expiration Date”), the Lead Borrower or any Parent Entity thereof shall have the right to issue common Qualified Equity Interests (or other Equity Interests (provided such other Equity Interests are reasonably satisfactory acceptable to the Administrative AgentRequired Lenders) for cash or otherwise receive cash contributions to the capital of the Lead Borrower as cash common equity or other Qualified Equity Interests (or other Equity Interests (provided such other Equity Interests are reasonably satisfactory acceptable to the Administrative AgentRequired Lenders) (collectively, the “Cure Right”), and upon . Upon the receipt by the Borrower of the Net Proceeds of such issuance that are not otherwise applied (the “Cure Amount”, and together with the First Lien Cure Amount (as defined below), without duplication, the “Aggregate Cure Amount”) and/or upon the receipt by the Borrower of any Cure Amount (as defined in the First Lien Credit Agreement) (the “First Lien Cure Amount”) pursuant to the exercise by First Lien Credit Agreement, the Borrower of such Cure Right such Financial Performance Covenant Maintenance Covenants shall be recalculated giving effect to the following pro forma adjustment:
(ai) Consolidated EBITDA shall be increased with respect to such applicable fiscal quarter and any four fiscal quarter period that contains such fiscal quarter, solely for the purpose of measuring the Financial Performance Covenant Maintenance Covenants and not for any other purpose under this Agreement, by an amount equal to the Aggregate Cure Amount;; and
(bii) if, after giving effect to the foregoing pro forma adjustment (without giving pro forma effect to any repayment of any Indebtedness with any portion of the Aggregate Cure Amount and without netting against the calculation of Consolidated Total Indebtedness any portion of the Aggregate Cure Amount on the balance sheet of the Lead Borrower and its Restricted Subsidiaries Subsidiaries, in each case, with respect to such fiscal quarter only but with giving pro forma effect to any portion of the Cure Amount applied to any repayment of any Indebtednessonly), the Lead Borrower and its Restricted Subsidiaries shall then be in compliance with the requirements of the Financial Performance Maintenance Covenants, the Borrower and its Restricted Subsidiaries shall be deemed to have satisfied the requirements of the Financial Performance Covenant Maintenance Covenants as of the relevant date of determination with the same effect as though there had been no failure to comply therewith (if any) at such date, and and, if applicable, the applicable breach or default of the Financial Performance Covenant Maintenance Covenants (if any) that had occurred shall be deemed cured for the purposes of this Agreement; andprovided that the Borrower shall have notified the Administrative Agent of the exercise of such Cure Right within five (5) Business Days of the issuance of the relevant Qualified Equity Interests for cash or the receipt of the cash contributions by the Borrower (or any other receipt of cash in respect of its Cure Rights).
(cb) Notwithstanding anything herein to the contrary, (i) in each four consecutive fiscal quarter period of the Lead Borrower there shall be at least no more than two (2) fiscal quarters in which the Cure Right is not exercised, (ii) during the term of this Agreement, the Cure Right shall not be exercised more than five times, (5) times and (iii) for purposes of this Section 7.02, the Cure Amount shall be no greater than the amount required for purposes of complying with the Financial Performance Covenant Maintenance Covenants and any amounts in excess thereof shall not be deemed to be a Cure Amount and (iv) the Lenders shall not be required to make a Loan or issue, amend, renew or extend any Letter of Credit unless and until the Borrower has received the Cure Amount required to cause the Borrower and the Restricted Subsidiaries to be in compliance with the Financial Performance CovenantsAmount. Notwithstanding any other provision in this Agreement to the contrary, the Aggregate Cure Amount received pursuant to any exercise of the Cure Right or the Cure Right (as defined in the First Lien Credit Agreement) shall be disregarded for purposes of determining the Available Amount, the Available Equity Amount, any financial ratio-ratio based conditions or tests, pricing or any and/or available basket under Article VI of this Agreement (and the Aggregate Cure Amount shall not be credited as an addition to any basket (including the Available Amount or the Available Equity Amount) or for any other calculation). For the avoidance of doubt, no Aggregate Cure Amounts shall be applied to reduce the Indebtedness of the Borrower and its Subsidiaries on a Pro Forma Basis (whether by “cash netting” or otherwise) for purposes of determining compliance with the Financial Maintenance Covenants for the fiscal quarter with respect to which such Cure Right or Cure Right (as defined in the First Lien Credit Agreement) was exercised.
(c) [Reserved].
(d) Notwithstanding anything herein to the contrary, neither the Administrative Agent nor any Lender shall exercise the right to accelerate the Loans under the Term Facility or terminate the Commitments and none of the Administrative Agent, any Lender or any other Secured Party shall exercise any right to foreclose on or take possession of the Collateral or the Badcock Collateral or exercise any remedy solely on the basis of an Event of Default having occurred and being continuing with respect to the Financial Maintenance Covenants, in each case, unless such Event of Default is not cured pursuant to the exercise of the applicable Cure Right on or prior to the applicable Cure Expiration Date (except to the extent that the Lead Borrower has confirmed in writing that it does not intend to provide the Cure Amount).
Appears in 2 contracts
Samples: Second Lien Credit Agreement (Franchise Group, Inc.), Second Lien Credit Agreement (Franchise Group, Inc.)
Right to Cure. (a) Notwithstanding anything to the contrary contained in Section 7.01, in the event that Holdings and the Borrower and its Restricted Subsidiaries fail to comply with the requirements of the Financial Performance Covenant Section 6.10 as of the last day of any fiscal quarter of the BorrowerHoldings, at any time after the beginning of such fiscal quarter until the expiration of the 10th Business Day following subsequent to the date on which the financial statements a Compliance Certificate with respect to such fiscal quarter (or the fiscal year ended on the last day of such fiscal quarter) are is required to be delivered pursuant to in accordance with Section 5.01(a) or Section 5.01(b5.01(d), the Borrower or any Parent Entity thereof Holdings shall have the right to issue common Qualified Equity Interests or other Equity Interests (provided such other Equity Interests are reasonably satisfactory to the Administrative Agent) for cash or otherwise receive cash contributions to the capital of Holdings as cash common equity or other Qualified Equity Interests (which Holdings shall contribute to the Borrower as cash common Equity Interests or other Equity Interests (provided such other Equity Interests are reasonably satisfactory to the Administrative Agentequity) (collectively, the “Cure Right”), and upon the receipt by the Borrower of the Net Proceeds of such issuance that are not otherwise applied (the “Cure Amount”) pursuant to the exercise by the Borrower Holdings of such Cure Right such Financial Performance Covenant the financial performance covenants set forth in Section 6.10 shall be recalculated giving effect to the following pro forma adjustment:
(ai) Consolidated EBITDA shall be increased with respect to such applicable fiscal quarter and any four fiscal quarter period that contains such fiscal quarter, solely for the purpose of measuring the Financial Performance Covenant financial performance covenants set forth in Section 6.10 and not for any other purpose under this Agreement, by an amount equal to the Cure Amount;; and
(bii) if, after giving effect to the foregoing pro forma adjustment (without giving effect to any repayment of any Indebtedness with any portion of the Cure Amount or any portion of the Cure Amount on the balance sheet of the Borrower Holdings and its Restricted Subsidiaries Subsidiaries, in each case, with respect to such fiscal quarter only but with giving pro forma effect to any portion of and the Cure Amount applied to any repayment of any Indebtednessfiscal quarter immediately following such fiscal quarter only), the Borrower Holdings and its Restricted Subsidiaries shall then be in compliance with the requirements of the Financial Performance Covenantsfinancial performance covenants set forth in Section 6.10, the Borrower Holdings and its Restricted Subsidiaries shall be deemed to have satisfied the requirements of the Financial Performance Covenant financial performance covenants set forth in Section 6.10 as of the relevant date of determination with the same effect as though there had been no failure to comply therewith at such date, and the applicable breach or default of the Financial Performance Covenant financial performance covenants set forth in Section 6.10 that had occurred shall be deemed cured for the purposes of this Agreement; andprovided that the Borrower shall have notified the Administrative Agent of the exercise of such Cure Right within five (5) Business Days of the issuance of the relevant Qualified Equity Interests for cash or the receipt of the cash contributions by Holdings.
(cb) Notwithstanding anything herein to the contrary, (i) in each four consecutive fiscal quarter period of the Borrower there shall be at least two fiscal quarters in which the Cure Right is not exercised, (ii) during the term of this Agreement, the Cure Right shall not be exercised more than five times, times and (iii) for purposes of this Section 7.02, the Cure Amount shall be no greater than the amount required for purposes of complying with the Financial Performance Covenant financial performance covenants set forth in Section 6.10 and any amounts in excess thereof shall not be deemed to be a Cure Amount and (iv) the Lenders shall not be required to make a Loan or issue, amend, renew or extend any Letter of Credit unless and until the Borrower has received the Cure Amount required to cause the Borrower and the Restricted Subsidiaries to be in compliance with the Financial Performance CovenantsAmount. Notwithstanding any other provision in this Agreement to the contrary, the Cure Amount received pursuant to any exercise of the Cure Right shall be disregarded for purposes of determining the Available AmountApplicable Rate, the Available Equity Amount, any financial ratio-based conditions or tests, pricing or any available basket under Article VI of this Agreement, any cash netting from indebtedness for financial ratio-based calculations (with respect to such fiscal quarter) or any other financial-ratio based conditions other than compliance with the financial performance covenants set forth in Section 6.10 and there shall be no pro forma reduction in indebtedness with the proceeds of any Cure Amount for purposes of determining compliance with the financial performance covenants set forth in Section 6.10. For the avoidance of doubt, no Lender shall be required to make any extension of credit and no Issuing Bank shall be required to Issue any Letters of Credit during the ten Business Day period referred to in clause (a) above unless the Borrower has received the proceeds of such Cure Amount.
Appears in 2 contracts
Samples: Credit Agreement (TA Holdings 1, Inc.), Credit Agreement (TA Holdings 1, Inc.)
Right to Cure. Notwithstanding anything to the contrary contained in Section 7.01, in the event that the Borrower and its Restricted Subsidiaries fail fails to comply with the requirements of the Financial Performance Maintenance Covenant as of the last day of any fiscal quarter of the BorrowerTest Period, at any time after the beginning of such fiscal quarter period until the expiration of the 10th fifteenth Business Day following subsequent to the date on which the financial statements with respect to such fiscal quarter (or the fiscal year ended on the last day of such fiscal quarter) Test Period are required to be delivered pursuant to Section 5.01(a) or Section 5.01(b), as applicable, the Borrower or any Parent Entity thereof shall have the right to issue common Qualified Equity Interests or other Equity Interests (provided such other Equity Interests are reasonably satisfactory to the Administrative AgentAgent (each such issuance taken pursuant to and in accordance with this Section 7.02, a “Specified Equity Issuance”) for cash or otherwise receive cash contributions to the capital of the Borrower Holdings as cash common equity or other Qualified Equity Interests or other Equity Interests (provided such other Equity Interests are reasonably satisfactory to the Administrative Agent) , in each case, which are contributed to the Borrower in the form of cash (collectively, the “Cure Right”), and upon the receipt by the Borrower of the Net Proceeds of such issuance that are not otherwise applied (the “Cure Amount”) pursuant to the exercise by the Borrower of such Cure Right such Right, the satisfaction of the RC Facility Test Condition or the Financial Performance Covenant Maintenance Covenant, as applicable, shall be recalculated giving effect to the following pro forma adjustment:
(a) at the option of the Borrower, either (i) the amount calculated pursuant to the definition of “RC Facility Test Condition” shall be reduced and/or (ii) Consolidated EBITDA shall be increased increased, in each case with respect to the foregoing clauses (i) and (ii), (x) solely with respect to such applicable fiscal quarter and any four fiscal quarter period that contains such fiscal quarter, solely (y) for the purpose of measuring the Financial Performance Maintenance Covenant and not for any other purpose under this Agreement, Agreement and (z) by an amount equal to the Cure Amount;
(b) if, after giving effect to the foregoing pro forma adjustment recalculation (without giving effect netting against the calculation of Consolidated First Lien Net Debt (or any component definition thereof), with respect to such fiscal quarter and any four fiscal quarter period that contains such fiscal quarter, any portion of the Cure Amount on the balance sheet of the Borrower and its Restricted Subsidiaries without giving pro forma effect, with respect to such fiscal quarter only but with giving pro forma effect and any four fiscal quarter that contains such fiscal quarter, to any portion of the Cure Amount applied to any repayment of any IndebtednessIndebtedness in connection therewith, except to the extent of any actual repayment), either (i) the RC Facility Test Condition shall cease to be satisfied, then in such case, the Financial Maintenance Covenant shall cease to be in effect and shall not be required to be tested with respect to the applicable fiscal quarter or (ii) the Borrower and its Restricted Subsidiaries shall then be in compliance with the requirements of the Financial Performance CovenantsMaintenance Covenant, then in such case, the Borrower and its Restricted Subsidiaries shall be deemed to have satisfied the requirements of the Financial Performance Maintenance Covenant as of the relevant date of determination with the same effect as though there had been no failure to comply therewith at such date, and the applicable breach or default of the Financial Performance Maintenance Covenant that had occurred (and any other Default or Event of Default as a result thereof) shall be deemed cured for the purposes of this Agreement; and
(c) Notwithstanding anything herein to the contrary, (i) in each four consecutive fiscal quarter period of the Borrower there shall be at least two fiscal quarters in which the Cure Right is not exercised, (ii) during the term of this Agreement, the Cure Right shall not be exercised more than five times, (iii) the Cure Amount shall be no greater than the amount required for purposes of complying with the Financial Performance Covenant and any amounts in excess thereof shall not be deemed to be a Cure Amount and (iv) the Lenders shall not be required to make a Loan or issue, amend, renew or extend any Letter of Credit unless and until the Borrower has received the Cure Amount required to cause the Borrower and the Restricted Subsidiaries to be in compliance with the Financial Performance Covenants. Notwithstanding any other provision in this Agreement to the contrary, the Cure Amount received pursuant to any exercise of the Cure Right shall be disregarded for purposes of determining the Available Amount, the Available Equity Amount, any financial ratio-based conditions or tests, pricing or any available basket under Article VI of this Agreement.;
Appears in 2 contracts
Samples: First Lien Credit Agreement (Clarios International Inc.), First Lien Credit Agreement (Clarios International Inc.)
Right to Cure. Notwithstanding anything to the contrary contained in Section 7.018.1, for purposes of determining whether a Financial Covenant Default has occurred, any equity contribution (in the event that form of cash common equity or other equity reasonably acceptable to the Administrative Agent) made to the Parent Borrower and its Restricted Subsidiaries fail to comply with the requirements of the Financial Performance Covenant as of after the last day of any fiscal quarter of Fiscal Quarter and on or prior to the Borrower, at any time day that is 10 Business Days after the beginning later to occur of such fiscal quarter until (x) the expiration of day on which financial statements for the 10th Business Day following period to which the Financial Covenant Default is applicable, or (y) the date on which when the financial statements with respect to such fiscal quarter (or the fiscal year ended on the last day of such fiscal quarter) applicable Liquidity Event first occurred, are required to be delivered pursuant to Section 5.01(a) or Section 5.01(b)for that Fiscal Quarter will, upon the delivery of a written notice by the Borrower or any Parent Entity thereof shall have the right to issue common Equity Interests or other Equity Interests (provided such other Equity Interests are reasonably satisfactory Representative to the Administrative Agent) for cash or otherwise receive cash contributions to the capital of the Borrower as cash common Equity Interests or other Equity Interests Agent (provided such other Equity Interests are reasonably satisfactory to the Administrative Agent) (collectivelynotice, the “Cure RightNotice”), and upon be included as an addition in the receipt by the Borrower calculation of the Net Proceeds of such issuance that are not otherwise applied (the “Cure Amount”) pursuant to the exercise by the Borrower of such Cure Right such Financial Performance Covenant shall be recalculated giving effect to the following pro forma adjustment:
(a) Consolidated Adjusted EBITDA shall be increased with respect to such applicable fiscal quarter and any four fiscal quarter period that contains such fiscal quarter, solely for the purpose purposes of measuring calculating the Financial Performance Covenant on a Pro Forma Basis at the end of such Fiscal Quarter and any subsequent period that includes such Fiscal Quarter (any such equity contribution, a “Specified Equity Contribution”); provided that (a) the Borrower Representative shall not for be permitted to so request that a Specified Equity Contribution be included as an addition in the calculation of Consolidated Adjusted EBITDA with respect to any other purpose under this Agreement, by an amount equal to the Cure Amount;
(b) ifFiscal Quarter unless, after giving effect to the foregoing pro forma adjustment (without giving effect to any portion of the Cure Amount on the balance sheet of the Borrower and its Restricted Subsidiaries with respect to such fiscal quarter only but with giving pro forma effect to any portion of the Cure Amount applied to any repayment of any Indebtedness), the Borrower and its Restricted Subsidiaries shall then be in compliance with the requirements of the Financial Performance Covenants, the Borrower and its Restricted Subsidiaries shall be deemed to have satisfied the requirements of the Financial Performance Covenant as of the relevant date of determination with the same effect as though there had been no failure to comply therewith at such date, and the applicable breach or default of the Financial Performance Covenant that had occurred shall be deemed cured for the purposes of this Agreement; and
(c) Notwithstanding anything herein to the contraryrequested Specified Equity Contribution, (ix) in each four consecutive fiscal quarter there will be a period of the Borrower there shall be at least two fiscal quarters Fiscal Quarters in the Relevant Four Fiscal Quarter Period in which the Cure Right is not exercisedno Specified Equity Contribution has been made, and (iiy) during the term of this Agreement, the Cure Right shall not be exercised there have been no more than five timesSpecified Equity Contributions made hereunder, (iiib) the Cure Amount shall amount of any Specified Equity Contribution will be no greater than the amount required to cause the Fixed Charge Coverage Ratio on a Pro Forma Basis to be in compliance with Section 6.10 and (c) all Specified Equity Contributions will be disregarded for all other purposes of complying with calculating Consolidated Adjusted EBITDA under the Financial Performance Covenant Credit Documents (including calculating basket levels and any amounts in excess thereof other items governed by reference to Consolidated Adjusted EBITDA). To the extent that the proceeds of the Specified Equity Contribution are used to repay Indebtedness, such Indebtedness shall not be deemed to be have been repaid for purposes of (i) calculating the Fixed Charge Coverage Ratio on a Cure Amount and Pro Forma Basis set forth in Section 6.10 for the Relevant Four Fiscal Quarter Period, (ivii) the Lenders shall not be required to make a Loan [reserved] or issue, amend, renew or extend any Letter of Credit unless and until the Borrower has received the Cure Amount required to cause the Borrower and the Restricted Subsidiaries to be in (iii) determining compliance with the Financial Performance CovenantsCovenant. Notwithstanding any other provision in For purposes of this Agreement to the contraryparagraph, the Cure Amount received pursuant term “Relevant Four Fiscal Quarter Period” means, with respect to any exercise of the Cure Right shall be disregarded for purposes of determining the Available Amountrequested Specified Equity Contribution, the Available four Fiscal Quarter period ending on (and including) the Fiscal Quarter in which Consolidated Adjusted EBITDA will be increased as a result of such Specified Equity Amount, any financial ratio-based conditions or tests, pricing or any available basket under Article VI of this AgreementContribution.
Appears in 2 contracts
Samples: Credit and Guaranty Agreement and Pledge and Security Agreement (Lannett Co Inc), Credit and Guaranty Agreement (Lannett Co Inc)
Right to Cure. (a) Notwithstanding anything to the contrary contained in Section 7.0110.1, in the event that the Borrower and its Restricted Subsidiaries fail to comply with the requirements of the Financial Performance Covenant as of the last day of any fiscal quarter Event of the BorrowerDefault under Section 6.1, at any time after the beginning following delivery of such fiscal quarter a Notice of Intent to Cure in accordance herewith and until the expiration of the 10th tenth (10th) Business Day following after the date on which the financial statements with respect to such fiscal quarter (or the fiscal year ended on the last day of such fiscal quarter) are Consolidated Fixed Charge Coverage Ratio calculation is required to be delivered pursuant to Section 5.01(a) 6.1 or Section 5.01(b7.2(a) (such date, the “Cure Expiration Date”), Holdings may designate any portion of the Borrower or Net Cash Proceeds of any Parent Entity thereof shall have the right to issue issuance of common Equity Interests or other Equity Interests (provided such other Equity Interests are or, if on terms and conditions reasonably satisfactory acceptable to the Administrative Agent, preferred) for Equity Interests of any Loan Party or any cash or otherwise receive cash contributions capital contribution to the capital common or preferred equity of any Loan Party as an increase to Consolidated EBITDA with respect to such applicable Fiscal Quarter; provided that all such Net Cash Proceeds to be so designated (i) are actually received by the Borrower Loan Parties as cash common Equity Interests or other Equity Interests preferred equity (provided including through capital contribution of such other Equity Interests are reasonably satisfactory Net Cash Proceeds to the Administrative AgentLoan Parties) after the date of such Notice of Intent to Cure and before the Cure Expiration Date and (collectively, ii) the “Cure Right”), and upon aggregate amount of such Net Cash Proceeds or cash capital contribution that are so designated shall not exceed 100% of the aggregate amount necessary to cure such Event of Default under Article VI for any applicable Test Period.
(b) Upon receipt by the Borrower Loan Parties of the any such designated Net Cash Proceeds of such issuance that are not otherwise applied or cash capital contribution (the “Cure Amount”) pursuant in accordance with this Section 10.4, Consolidated EBITDA for any period of calculation which includes the last Fiscal Quarter of the Test Period ending immediately prior to the exercise by the Borrower of date on which such Cure Right such Financial Performance Covenant Amount was received shall be recalculated giving effect to the following pro forma adjustment:
(a) Consolidated EBITDA shall be increased with respect to such applicable fiscal quarter and any four fiscal quarter period that contains such fiscal quarterincreased, solely for the purpose of measuring calculating the Financial Performance Covenant and not for any other purpose under this AgreementConsolidated Fixed Charge Coverage Ratio pursuant to Section 6.1, by an amount equal to the Cure Amount;. The resulting increase to Consolidated EBITDA and any reduction in Indebtedness, if applicable, from designation of a Cure Amount shall not result in any adjustment to Consolidated EBITDA or any other financial definition for any purpose under this Agreement other than for purposes of calculating the Consolidated Fixed Charge Coverage Ratio pursuant to Section 6.1 and for additional clarification shall not adjust the calculation of Consolidated EBITDA for purposes of determining the Net Leverage Ratio, the Secured Leverage Ratio, the Interest Coverage Ratio or Consolidated Fixed Charge Coverage Ratio (other than for purposes of actual compliance with Section 6.1 as of the end of any applicable Test Period). Any Indebtedness prepaid with the proceeds of the Cure Amount shall be deemed outstanding for purposes of determining compliance with Section 6.1.
(bc) ifIf, after giving effect to the foregoing pro forma adjustment (without giving effect to any portion of the Cure Amount on the balance sheet of the Borrower and its Restricted Subsidiaries with respect to such fiscal quarter only but with giving pro forma effect to any portion of the Cure Amount applied to any repayment of any Indebtedness)recalculations, the Borrower and its Restricted Subsidiaries Loan Parties shall then be in compliance with the requirements of the Financial Performance CovenantsSection 6.1, the Borrower and its Restricted Subsidiaries Loan Parties shall be deemed to have satisfied the requirements of the Financial Performance Covenant Section 6.1 as of the relevant date of determination with the same effect as though there had been no failure to comply therewith at such date, and the applicable existing breach or default of the Financial Performance Covenant that had occurred Section 6.1 shall be deemed cured for this purpose of the purposes of this Agreement; and.
(cd) Notwithstanding anything herein to the contrary, (i) in In each four consecutive fiscal quarter period of the Borrower four Fiscal Quarters, there shall be at least two fiscal quarters in (2) Fiscal Quarters for which the Cure Right Consolidated EBITDA is not exercised, increased by exercise of a cure pursuant to Section 10.4(a). Consolidated EBITDA may not be increased by the exercise of a cure pursuant to Section 10.4(a) more than four (ii4) times during the term of this Agreement.
(e) From the date of delivery of a Notice of Intent to Cure until the earlier to occur of the Cure Expiration Date and the date on which the Administrative Agent is notified by Holdings or the Lead Administrative Borrower that the required contribution will not be made, the Event of Default resulting from the breach of Section 6.1 for which the applicable Notice of Intent to Cure Right was delivered shall not be exercised more than five times, (iii) the Cure Amount shall be no greater than the amount required for purposes of complying with the Financial Performance Covenant and any amounts in excess thereof shall not be deemed to exist for all purposes of the Loan Documents, including, without limitation, conditions to funding (provided that, during such period, the exercise by the Administrative Agent of its rights or remedies with respect to such Event of Default resulting from the breach of Section 6.1 shall be a subject to the provisions of Section 10.2(c)); and in the event the required contribution is not made by the Cure Amount Expiration Date, the Administrative Agent and (iv) the Lenders shall not be required have all rights and remedies available to make a Loan or issue, amend, renew or extend any Letter them in respect of Credit unless and until the Borrower has received the Cure Amount required to cause the Borrower and the Restricted Subsidiaries to be in compliance with the Financial Performance Covenants. Notwithstanding any other provision such Event of Default as provided in this Agreement to and the contrary, the Cure Amount received pursuant to any exercise of the Cure Right shall be disregarded for purposes of determining the Available Amount, the Available Equity Amount, any financial ratio-based conditions or tests, pricing or any available basket under Article VI of this Agreementother Loan Documents.
Appears in 2 contracts
Samples: Credit Agreement (Signet Jewelers LTD), Credit Agreement (Signet Jewelers LTD)
Right to Cure. (a) Notwithstanding anything to the contrary contained in Section 7.018.01 or 8.02, in the event that the Parent Borrower and its Restricted Subsidiaries fail fails to comply with the requirements of the Financial Performance Covenant as at any time when the Parent Borrower is required to comply with the Financial Covenant pursuant to the terms thereof, then (A) from the end of the last day of any most recently ended fiscal quarter of the Borrower, at any time after the beginning of such fiscal quarter Parent Borrower until the expiration of the 10th fifteenth Business Day following subsequent to the date on which the financial statements with respect to such fiscal quarter (or the fiscal year ended on the last day of such fiscal quarter) are relevant Compliance Certificate is required to be delivered pursuant to Section 5.01(a6.02(b) or Section 5.01(b(the last day of such period being the “Anticipated Cure Deadline”), the Borrower or any Parent Entity thereof Holdings shall have the right (the “Cure Right”) to (A) issue common Equity Interests Capital Stock (or other Equity Interests (provided such other Equity Interests are preferred equity reasonably satisfactory acceptable to the Administrative Agent) for cash and contribute the proceeds therefrom in the form of common Capital Stock or in another form reasonably acceptable to the Administrative Agent to the Parent Borrower, (B) obtain a contribution to its equity (which shall be in the form of common equity or otherwise receive cash contributions in a form reasonably acceptable to the capital of the Borrower as cash common Equity Interests Administrative Agent) or other Equity Interests (provided such other Equity Interests are C) Incur Subordinated Indebtedness (which shall be in a form reasonably satisfactory acceptable to the Administrative Agent) (collectively, the “Cure RightEquity”), and upon the receipt by the Parent Borrower of the Net Proceeds of such issuance that are not otherwise applied cash (the “Cure Amount”) ), pursuant to the exercise by the Parent Borrower of such Cure Right such Right, the calculation of Consolidated EBITDA as used in the Financial Performance Covenant shall be recalculated giving effect to the following pro forma adjustmentadjustments:
(ai) Consolidated EBITDA shall be increased with respect to for such applicable fiscal quarter (and for any four fiscal quarter subsequent period that contains includes such fiscal quarter) shall be increased, solely for the purpose of measuring the Financial Performance Covenant and not for any other purpose under this AgreementAgreement (including but not limited to determining the availability or amount of any covenant baskets or carve-outs (including the determination of amounts available under Section 7.05) or determining the Applicable Commitment Fee or Applicable Rate, provided that, in determining the Applicable Commitment Fee or the Applicable Rate, effect shall be given to the relevant Cure Amount for purposes of clause (y) in the respective definitions thereof, such that no Event of Default shall be deemed to have occurred and be continuing), by an amount equal to the Cure Amount;; provided that (1) the receipt by the Parent Borrower of the Cure Amount pursuant to the Cure Right shall be deemed to have no other effect whatsoever under this Agreement (including but not limited to determining the availability or amount of any covenant baskets or carve-outs or determining the Applicable Commitment Fee or Applicable Rate, provided that, in determining the Applicable Commitment Fee or the Applicable Rate, effect shall be given to the relevant Cure Amount for purposes of clause (y) in the respective definitions thereof, such that no Event of Default shall be deemed to have occurred and be continuing) and (2) no Cure Amount shall reduce Indebtedness on a Pro Forma Basis for the applicable period for purposes of calculating the Financial Covenant or calculating the Consolidated First Lien Net Leverage Ratio, the Consolidated Senior Secured Net Leverage Ratio or the Consolidated Total Net Leverage Ratio, nor shall any Cure Amount held by any Borrower Party qualify as “unrestricted cash or Cash Equivalents of the Borrower Parties” for the purposes of calculating any net obligations or liabilities under the terms of this Agreement; and
(bii) if, after giving effect to the foregoing pro forma adjustment (without giving effect to any portion of the Cure Amount on the balance sheet of the Borrower and its Restricted Subsidiaries with respect to such fiscal quarter only but with giving pro forma effect to any portion of the Cure Amount applied to any repayment of any Indebtedness)recalculations, the Parent Borrower and its Restricted Subsidiaries shall then be in compliance with the requirements of the Financial Performance CovenantsCovenant, the Parent Borrower and its Restricted Subsidiaries shall be deemed to have satisfied the requirements of the Financial Performance Covenant as of the relevant date of determination with the same effect as though there had been no failure to comply therewith at such date, and the applicable breach or default of the Financial Performance Covenant that had occurred (and any other Default as a result thereof, including the failure to meet any condition requiring no Default or Event of Default based solely on the basis of any actual or purported Event of Default under the Financial Covenant) shall be deemed cured for the purposes of this Agreement; and
(ciii) prior to the Anticipated Cure Deadline, no Default or Event of Default will be deemed to have occurred as a result of any failure to meet the Financial Covenant, and the Lenders (i) shall not be permitted to accelerate Loans held by them, to terminate the Revolving Credit Commitments held by them or to exercise remedies against the Collateral on the basis of a failure to comply with the requirements of the Financial Covenant, unless such failure is not cured pursuant to the exercise of the Cure Right on or prior to the Anticipated Cure Deadline and (ii) if there has been a failure to comply with the Financial Covenant for such period, shall not be obligated to make any Credit Extension under the Revolving Credit Facility until such Cure Amount has been received by the Parent Borrower.
(b) Notwithstanding anything herein to the contrary, (i) in each four consecutive fiscal fiscal-quarter period of the Borrower there shall be at least two fiscal quarters in respect of which the Cure Right is not exercised, (ii) there can be no more than five fiscal quarters in respect of which the Cure Right is exercised during the term of the Facilities and (iii) for purposes of this AgreementSection 8.03, the Cure Right shall not be exercised more than five times, (iii) the Cure Amount utilized shall be no greater than the minimum amount required for purposes of complying to remedy the applicable failure to comply with the Financial Performance Covenant and any amounts in excess thereof shall not be deemed to be a Cure Amount and (iv) the Lenders shall not be required to make a Loan or issue, amend, renew or extend any Letter of Credit unless and until the Borrower has received the Cure Amount required to cause the Borrower and the Restricted Subsidiaries to be in compliance with the Financial Performance Covenants. Notwithstanding any other provision in this Agreement to the contrary, the Cure Amount received pursuant to any exercise of the Cure Right shall be disregarded for purposes of determining the Available Amount, the Available Equity Amount, any financial ratio-based conditions or tests, pricing or any available basket under Article VI of this AgreementCovenant.
Appears in 2 contracts
Samples: Credit Agreement (Maravai Lifesciences Holdings, Inc.), Credit Agreement (Maravai Lifesciences Holdings, Inc.)
Right to Cure. (a) Notwithstanding anything to the contrary contained in Section 7.018.01 or 8.02, in the event that the Borrower and its Restricted Subsidiaries fail fails to comply with the requirements of the Financial Performance Covenant as at any time when the Borrower is required to comply with such Financial Covenant, pursuant to the terms thereof, then from the end of the last day of any most recently ended fiscal quarter of the Borrower, at any time after the beginning of such fiscal quarter Borrower until the expiration of the 10th tenth Business Day following subsequent to the date on which the financial statements with respect to such fiscal quarter (or the fiscal year ended on the last day of such fiscal quarter) are relevant Compliance Certificate is required to be delivered pursuant to Section 5.01(a6.02(b) or Section 5.01(b(the last day of such period being the “Anticipated Cure Deadline”), the Borrower or any Parent Entity thereof Holdings shall have the right (the “Cure Right”) to issue common Equity Interests Capital Stock (or other Equity Interests (provided such other Equity Interests are preferred equity and/or convertible preferred equity reasonably satisfactory acceptable to the Administrative Agent) for cash and contribute the proceeds therefrom in the form of common Capital Stock or in another form reasonably acceptable to the Administrative Agent to the Borrower or obtain a contribution to its equity (which shall be in the form of common equity or otherwise receive cash contributions to the capital of the Borrower as cash common Equity Interests or other Equity Interests (provided such other Equity Interests are in a form reasonably satisfactory acceptable to the Administrative Agent) (collectively, the “Cure RightEquity”), and upon the receipt by the Borrower of the Net Proceeds of such issuance that are not otherwise applied cash (the “Cure Amount”) ), pursuant to the exercise by the Borrower of such Cure Right such Right, the calculation of Consolidated EBITDA as used in the Financial Performance Covenant shall be recalculated giving effect to the following pro forma adjustmentadjustments:
(a) i. Consolidated EBITDA shall be increased with respect to for such applicable fiscal quarter (and for any four fiscal quarter subsequent period that contains includes such fiscal quarter) shall be increased, solely for the purpose of measuring the Financial Performance Covenant and not for any other purpose under this AgreementAgreement (including but not limited to determining the availability or amount of any covenant baskets or carve-outs (including the determination of amounts available under Section 7.05) or determining the Applicable Commitment Fee or Applicable Rate, provided that, in determining the Applicable Commitment Fee or the Applicable Rate, effect shall be given to the relevant Cure Amount for purposes of clause (y) in the respective definitions thereof, such that no Event of Default shall be deemed to have occurred and be continuing), by an amount equal to the Cure Amount;; provided that (1) the receipt by the Borrower of the Cure Amount pursuant to the Cure Right shall be deemed to have no other effect whatsoever under this Agreement (including but not limited to determining the availability or amount of any covenant baskets or carve-outs or determining the Applicable Commitment Fee or Applicable Rate, provided that, in determining the Applicable Commitment Fee or the Applicable Rate, effect shall be given to the relevant Cure Amount for purposes of clause (y) in the respective definitions thereof, such that no Event of Default shall be deemed to have occurred and be continuing) and (2) no Cure Amount shall reduce Indebtedness on a Pro Forma Basis for the applicable period for purposes of calculating the Financial Covenant or calculating the Consolidated First Lien Net Leverage Ratio, or the Consolidated Total Net Leverage Ratio, nor shall any Cure Amount held by the Borrower qualify as “unrestricted cash or Cash Equivalents of the Borrower Parties” for the purposes of calculating any net obligations or liabilities under the terms of this Agreement; and
(b) ii. if, after giving effect to the foregoing pro forma adjustment (without giving effect to any portion of the Cure Amount on the balance sheet of the Borrower and its Restricted Subsidiaries with respect to such fiscal quarter only but with giving pro forma effect to any portion of the Cure Amount applied to any repayment of any Indebtedness)recalculations, the Borrower and its Restricted Subsidiaries shall then be in compliance with the requirements of the Financial Performance CovenantsCovenant, the Borrower and its Restricted Subsidiaries shall be deemed to have satisfied the requirements of the Financial Performance Covenant as of the relevant date of determination with the same effect as though there had been no failure to comply therewith at such date, and the applicable breach or default of the Financial Performance Covenant that had occurred (and any other Default as a result thereof, including the failure to meet any condition requiring no Default or Event of Default based solely on the basis of any actual or purported Event of Default under the Financial Covenant) shall be deemed cured for the purposes of this Agreement; and
iii. upon receipt by the Administrative Agent of written notice, on or prior to the Anticipated Cure Deadline, that the Borrower intends to exercise the Cure Right in respect of a fiscal quarter, the Lenders (ci) shall not be permitted to accelerate Loans held by them, to terminate the Revolving Credit Commitments held by them or to exercise remedies against the Collateral on the basis of a failure to comply with the requirements of the Financial Covenant, unless such failure is not cured pursuant to the exercise of the Cure Right on or prior to the Anticipated Cure Deadline and (ii) shall not be obligated to make any Credit Extension under the Revolving Credit Facility.
(b) Notwithstanding anything herein to the contrary, (i) in each four consecutive fiscal fiscal-quarter period of the Borrower there shall be at least two fiscal quarters in respect of which the Cure Right is not exercised, (ii) there can be no more than five fiscal quarters in respect of which the Cure Right is exercised during the term of the Facilities and (iii) for purposes of this AgreementSection 8.03, the Cure Right shall not be exercised more than five times, (iii) the Cure Amount utilized shall be no greater than the minimum amount required for purposes of complying to remedy the applicable failure to comply with the Financial Performance Covenant and any amounts in excess thereof shall not be deemed to be a Cure Amount and (iv) the Lenders shall not be required to make a Loan or issue, amend, renew or extend any Letter of Credit unless and until the Borrower has received the Cure Amount required to cause the Borrower and the Restricted Subsidiaries to be in compliance with the Financial Performance Covenants. Notwithstanding any other provision in this Agreement to the contrary, the Cure Amount received pursuant to any exercise of the Cure Right shall be disregarded for purposes of determining the Available Amount, the Available Equity Amount, any financial ratio-based conditions or tests, pricing or any available basket under Article VI of this AgreementCovenant.
Appears in 2 contracts
Samples: Credit Agreement (Allison Transmission Holdings Inc), Credit Agreement (Allison Transmission Holdings Inc)
Right to Cure. (a) Notwithstanding anything to the contrary contained in Section 7.01, in the event that the Borrower and its the Restricted Subsidiaries reasonably expect to fail (or have failed) to comply with the requirements of the Financial Performance Covenant as of the last day of any fiscal quarter of the BorrowerTest Period, at any time after the beginning of such the last fiscal quarter of such Test Period until the expiration of the 10th Business Day following subsequent to the date on which the financial statements with respect to such fiscal quarter (or the fiscal year Fiscal Year ended on the last day of such fiscal quarter) are required to be delivered pursuant to Section 5.01(a) or Section 5.01(b(b), as applicable (the Borrower “Cure Deadline”), Holdings (or any Parent Entity thereof thereof) or the Borrower shall have the right to issue common Equity Interests or other Equity Interests (provided such other Equity Interests are reasonably satisfactory to the Administrative Agent) Permitted Cure Securities for cash or otherwise receive cash contributions to (or in the case of any Parent Entity of Holdings receive Equity Interests in Holdings for its capital contributions to) the capital of the Borrower as cash common Equity Interests or other Equity Interests equity (provided such other Equity Interests are reasonably satisfactory which, if received by Holdings, Holdings shall contribute to the Administrative AgentBorrower as cash common equity) (collectively, the “Cure Right”), and upon the receipt by the Borrower of the Net Cash Proceeds of such issuance that are not otherwise applied or contribution (the “Cure Amount”) pursuant to the exercise by the Borrower of such Cure Right such Right, the Financial Performance Covenant shall be recalculated giving effect to the following pro forma adjustment:
(ai) Consolidated EBITDA shall be increased with respect to such applicable fiscal quarter and any four fiscal quarter period Test Period that contains such fiscal quarter, solely for the purpose of measuring the Consolidated Secured Leverage Ratio for purposes of the Financial Performance Covenant and and, subject to clause (c) below, not for any other purpose under this Agreement, by an amount equal to the Cure Amount (but not in excess of the Necessary Cure Amount);
(bii) if, after giving effect to the foregoing pro forma adjustment (without giving effect to any repayment of any Indebtedness with any portion of the Cure Amount or any portion of the Cure Amount on the balance sheet of the Borrower and its Restricted Subsidiaries with respect to such fiscal quarter only but with giving pro forma effect to any portion of the Cure Amount applied to any repayment of any IndebtednessSubsidiaries), the Borrower and its Restricted Subsidiaries shall then be in compliance with the requirements of the Financial Performance CovenantsCovenant, the Borrower and its Restricted Subsidiaries shall be deemed to have satisfied the requirements of the Financial Performance Covenant as of the relevant date of determination with the same effect as though there had been no failure to comply therewith at such date, and the applicable breach or default of the Financial Performance Covenant that had occurred shall be deemed cured for the purposes of this Agreement; and
(ciii) Consolidated Debt with respect to any Test Period subsequent to the Test Period for which the Cure Amount is deemed applied that includes such fiscal quarter with respect to which such Cure Amount is received by the Borrower shall be decreased solely to the extent proceeds of the Cure Amount are applied to prepay any Indebtedness (provided that any such Indebtedness so prepaid shall be a permanent repayment of such Indebtedness and termination of commitments thereunder) included in the calculation of Consolidated Debt; provided that the Borrower shall have notified the Administrative Agent of the exercise of such Cure Right within five (5) Business Days of the issuance of the Permitted Cure Securities for cash or the receipt of the cash contributions by Holdings.
(b) Notwithstanding anything herein to the contrary, (i) in each four consecutive fiscal quarter period of the Borrower there shall be at least two fiscal quarters in which the Cure Right is not exercised, (ii) during the term of this Agreement, the Cure Right shall not be exercised more than five times, (iii) for purposes of this Section 7.02, the Cure Amount shall be no greater than the amount required for purposes of complying with the Financial Performance Covenant and any amounts in excess thereof shall not be deemed as of the end of such fiscal quarter (such amount, the “Necessary Cure Amount”); provided that if the Cure Right is exercised prior to the date financial statements are required to be a delivered for such fiscal quarter, then the Cure Amount and shall be equal to the amount reasonably determined by the Borrower in good faith that is required for purposes of complying with the Financial Covenant for such fiscal quarter (such amount, the “Expected Cure Amount”), (iv) there shall be no pro forma or other reduction in Indebtedness (by netting or otherwise) with the proceeds of any Cure Amount for determining compliance with the Financial Covenant for the fiscal quarter in which such Cure Amount increased the Consolidated EBITDA pursuant to clause (a)(i) above; provided that, to the extent such proceeds are applied to prepay Indebtedness, such reduction in Indebtedness may be given effect in determining compliance with the Financial Covenant in subsequent fiscal quarters and (v) upon receipt by the Administrative Agent of written notice, prior to the expiration of the 10th Business Day subsequent to the due date for delivery of the relevant financial statements pursuant to Section 5.01(a) or (b) (the “Anticipated Cure Deadline”) that the Borrower is considering the exercise of the Cure Right, the Lenders shall not be required permitted to make exercise any remedies under Section 7.01 or otherwise under the Loan Documents, including accelerating Loans held by them or to exercise remedies against the Collateral on the basis of a Loan or issue, amend, renew or extend any Letter failure to comply with the requirements of Credit unless and the Financial Covenant until such failure is not cured pursuant to the Borrower has received exercise of the Cure Amount required Right on or prior to cause the Borrower and the Restricted Subsidiaries to be in compliance with the Financial Performance CovenantsAnticipated Cure Deadline. Notwithstanding any other provision in this Agreement to the contrary, but subject to clause (c) below, the Cure Amount received pursuant to any exercise of the Cure Right shall be disregarded for purposes of determining the Available Amount, the Available Equity Amount, any financial ratio-ratio based conditions or testscondition, pricing or any available basket under Article VI of this Agreement.
(c) Notwithstanding anything herein to the contrary, to the extent that the Expected Cure Amount is (i) greater than the Necessary Cure Amount, then such difference may be used for the purposes of determining any baskets (other than any previously contributed Cure Amounts), with respect to the covenants contained in the Loan Documents, the Available Amount or the Available Equity Amount and any pricing provisions and (ii) less than the Necessary Cure Amount, then not later than the applicable Cure Deadline, the Borrower must receive the cash proceeds of Permitted Cure Securities or a cash capital contribution to Holdings, which cash common equity proceeds received by Borrower shall be equal to the shortfall between such Expected Cure Amount and such Necessary Cure Amount.
Appears in 2 contracts
Samples: Credit Agreement (Blue Buffalo Pet Products, Inc.), Credit Agreement (Blue Buffalo Pet Products, Inc.)
Right to Cure. Notwithstanding anything (a) If Tenant shall at any time fail to perform its obligation in accordance with the contrary contained in Section 7.01, provisions of this Lease and Tenant does not commence the cure of such failure within thirty (30) days of notice thereof (except in the event of emergencies), and thereafter diligently prosecute such cure to completion, then Landlord shall have the right, but shall not be obligated, to enter upon the Premises and to perform such obligation, notwithstanding the fact that the Borrower and its Restricted Subsidiaries fail to comply with the requirements of the Financial Performance Covenant as of the last day of any fiscal quarter of the Borrower, at any time after the beginning of no specific provision for such fiscal quarter until the expiration of the 10th Business Day following the date on which the financial statements substituted performance by Landlord is made in this Lease with respect to such fiscal quarter default. In performing such obligation, Landlord may make any payment of money or perform any other act. All sums so paid by Landlord (or together with interest at the fiscal year ended on the last day of such fiscal quarter) are required to be delivered pursuant to rate set forth in Section 5.01(a) or Section 5.01(b), the Borrower or any Parent Entity thereof shall have the right to issue common Equity Interests or other Equity Interests (provided such other Equity Interests are reasonably satisfactory to the Administrative Agent) for cash or otherwise receive cash contributions to the capital of the Borrower as cash common Equity Interests or other Equity Interests (provided such other Equity Interests are reasonably satisfactory to the Administrative Agent) (collectively, the “Cure Right”4.3 hereof), and upon all necessary incidental reasonable third party costs and expenses in connection with the receipt performance of any such acts by the Borrower of the Net Proceeds of such issuance that are not otherwise applied (the “Cure Amount”) pursuant to the exercise by the Borrower of such Cure Right such Financial Performance Covenant Landlord, shall be recalculated giving effect deemed to the following pro forma adjustment:
(a) Consolidated EBITDA be additional rent under this Lease and shall be increased with respect payable to such applicable fiscal quarter and any four fiscal quarter period that contains such fiscal quarter, solely for Landlord immediately on demand. Landlord may exercise the purpose of measuring the Financial Performance Covenant and not for foregoing rights without waiving any other purpose of its rights or releasing Tenant from any of its obligations under this Agreement, by an amount equal to the Cure Amount;Lease.
(b) if, after giving effect If Landlord shall have failed to perform any of Landlord's covenants hereunder relating to the foregoing pro forma adjustment Premises (without giving effect Landlord and Tenant hereby agreeing, however, that, except as otherwise provided in Section 3.2 relating to any portion of Tenant's right to complete the Cure Amount on the balance sheet of the Borrower and Punch List Work for its Restricted Subsidiaries own behalf if Landlord fails to do so, Tenant shall have no self-help rights with respect to such fiscal quarter only but with giving pro forma effect to any portion of the Cure Amount applied to any repayment of any Indebtedness), the Borrower and its Restricted Subsidiaries shall then be in compliance with the requirements of the Financial Performance Covenants, the Borrower and its Restricted Subsidiaries shall be deemed to have satisfied the requirements of the Financial Performance Covenant as of the relevant date of determination with the same effect as though there had been no failure to comply therewith at such date, and the applicable breach or default of the Financial Performance Covenant that had occurred shall be deemed cured for the purposes of this Agreement; and
(c) Notwithstanding anything herein to the contrary, (i) in each four consecutive fiscal quarter period common areas or facilities of the Borrower there shall be at least two fiscal quarters Building or any other tenant's space in which the Cure Right is not exercisedBuilding, if 47 51 applicable, upon any such expansion of the Building pursuant to Exhibit R hereof, or (ii) during the term of this AgreementBuilding Parking Area, the Cure Right Lot or the Common Areas of the Park) within the time periods set forth herein and Landlord does not commence the cure of such failure within thirty (30) days of notice thereof (except in the event of emergencies), and thereafter diligently prosecute such cure to completion, then Tenant shall have the right, but not be exercised more than five timesthe obligation, to cure any such covenants for the account of Landlord. If Tenant shall undertake such performance, Landlord shall reimburse Tenant for all costs and expenses reasonably incurred by Tenant in connection with such performance within twenty (iii20) days after receipt of an invoice therefor from Tenant (together with any such back up documentation reasonably requested by Landlord). If Landlord fails to reimburse Tenant within said twenty (20) day period, then interest at the Cure Amount rate set forth in Section 4.3 hereof, shall accrue on any amounts due from Landlord hereunder until such costs have been reimbursed in full. If there remains any amounts unpaid by Landlord to Tenant hereunder after interest has commenced to accrue for at least thirty (30) days, then Tenant shall be no greater than entitled to offset the amount required for purposes of complying unreimbursed costs together with the Financial Performance Covenant and any amounts in excess thereof shall not be deemed to be a Cure Amount and interest thereon as aforesaid, against fifteen percent (iv15%) the Lenders shall not be required to make a Loan or issue, amend, renew or extend any Letter of Credit unless and until the Borrower has received the Cure Amount required to cause the Borrower and the Restricted Subsidiaries to be in compliance with the Financial Performance Covenants. Notwithstanding any other provision in this Agreement to the contrary, the Cure Amount received pursuant to any exercise of the Cure Right shall be disregarded for purposes of determining the Available Amount, the Available Equity Amount, any financial ratio-based conditions or tests, pricing or any available basket under Article VI of this Agreementmonthly Fixed Rent due hereunder until such costs due to Tenant hereunder have been reimbursed in full.
Appears in 2 contracts
Samples: Lease Agreement (Unisphere Solutions Inc), Lease Agreement (Unisphere Networks Inc)
Right to Cure. Notwithstanding anything to the contrary contained in Section 7.01, in the event that the Borrower and its Restricted Subsidiaries fail to comply with the requirements of the Financial Performance Covenant as of the last day of any fiscal quarter of the Borrower, at any time after the beginning of such fiscal quarter until the expiration of the 10th Business Day following the date on which the financial statements with respect to such fiscal quarter (or the fiscal year ended on the last day of such fiscal quarter) are required to be delivered pursuant to Section 5.01(a) or Section 5.01(b), the Borrower or any Parent Entity thereof shall have the right to issue common Equity Interests or other Equity Interests (provided such other Equity Interests are reasonably satisfactory to the Administrative Agent) for cash or otherwise receive cash contributions to the capital of the Borrower as cash common Equity Interests or other Equity Interests (provided such other Equity Interests are reasonably satisfactory to the Administrative Agent) (collectively, the “Cure Right”), and upon the receipt by the Borrower of the Net Proceeds of such issuance that are not otherwise applied (the “Cure Amount”) pursuant to the exercise by the Borrower of such Cure Right such Financial Performance Covenant shall be recalculated giving effect to the following pro forma adjustment:
(a) Consolidated EBITDA shall be increased with respect to such applicable fiscal quarter and any four fiscal quarter period that contains such fiscal quarter, solely for the purpose of measuring the Financial Performance Covenant and not for any other purpose under this Agreement, by an amount equal to the Cure Amount;
(b) if, after giving effect to the foregoing pro forma adjustment (without giving effect to any portion of the Cure Amount on the balance sheet of the Borrower and its Restricted Subsidiaries with respect to such fiscal quarter only but with giving pro forma effect to any portion of the Cure Amount applied to any repayment of any Indebtedness), the Borrower and its Restricted Subsidiaries shall then be in compliance with the requirements of the Financial Performance Covenants, the Borrower and its Restricted Subsidiaries shall be deemed to have satisfied the requirements of the Financial Performance Covenant as of the relevant date of determination with the same effect as though there had been no failure to comply therewith at such date, and the applicable breach or default of the Financial Performance Covenant that had occurred shall be deemed cured for the purposes of this Agreement; and
(c) Notwithstanding notwithstanding anything herein to the contrary, (i) in each four consecutive fiscal quarter period of the Borrower there shall be at least two fiscal quarters in which the Cure Right is not exercised, (ii) during the term of this Agreement, the Cure Right shall not be exercised more than five times, times and (iii) the Cure Amount shall be no greater than the amount required for purposes of complying with the Financial Performance Covenant and any amounts in excess thereof shall not be deemed to be a Cure Amount and (iv) the Lenders shall not be required to make a Loan or issue, amend, renew or extend any Letter of Credit unless and until the Borrower has received the Cure Amount required to cause the Borrower and the Restricted Subsidiaries to be in compliance with the Financial Performance CovenantsAmount. Notwithstanding any other provision in this Agreement to the contrary, the Cure Amount received pursuant to any exercise of the Cure Right shall be disregarded for purposes of determining the Available Amount, the Available Equity Amount, any financial ratio-based conditions or tests, pricing or any available basket under Article VI of this Agreement.
Appears in 2 contracts
Samples: Credit Agreement (Sinclair Broadcast Group Inc), Credit Agreement (Sinclair Broadcast Group Inc)
Right to Cure. (a) Notwithstanding anything to the contrary contained in Section 7.018.01 or 8.02, in the event that the Borrower and its Restricted Subsidiaries fail fails to comply with the requirements of the Financial Performance Covenant as Leverage Covenant, then (A) from the end of the last day of any most recently ended fiscal quarter of the Borrower, at any time after the beginning of such fiscal quarter Borrower until the expiration of the 10th tenth Business Day following subsequent to the date on which the financial statements with respect to such fiscal quarter (or the fiscal year ended on the last day of such fiscal quarter) are relevant Compliance Certificate is required to be delivered pursuant to Section 5.01(a6.02(b) or Section 5.01(b(the last day of such period being the “Anticipated Cure Deadline”), the Borrower or any Parent Entity thereof Holdings Topco shall have the right to issue common Equity Interests or other Equity Interests (provided such other Equity Interests are reasonably satisfactory to the Administrative Agent) for cash or otherwise receive cash contributions to the capital of the Borrower as cash common Equity Interests or other Equity Interests (provided such other Equity Interests are reasonably satisfactory to the Administrative Agent) (collectively, the “Cure Right”) to issue common Equity Interests, preferred equity certificates and/or convertible preferred equity certificates (so long as such preferred equity certificates and convertible preferred equity certificates do not constitute Disqualified Stock) or in another form reasonably acceptable to the Administrative Agent for cash and contribute the proceeds therefrom in the form of common Equity Interests, to the Borrower or obtain a contribution to Holdings Topco’s equity (which shall be in the form of common Equity Interests, preferred equity certificates and/or convertible preferred equity certificates (so long as such preferred equity certificates and convertible preferred equity certificates do not constitute Disqualified Stock) or otherwise in a form reasonably acceptable to the Administrative Agent (the “Cure Equity”) and contribute the proceeds therefrom in the form of common Equity Interests to the Borrower), and upon the receipt by the Borrower of the Net Proceeds of such issuance that are not otherwise applied cash (the “Cure Amount”) ), pursuant to the exercise by the Borrower of such Cure Right such Financial Performance Right, the calculation of Consolidated EBITDA as used in the Leverage Covenant shall be recalculated giving effect to the following pro forma adjustmentadjustments:
(ai) Consolidated EBITDA shall be increased with respect to for such applicable fiscal quarter (and for any four fiscal quarter subsequent period that contains includes such fiscal quarter) shall be increased, solely for the purpose of measuring the Financial Performance Leverage Covenant and not for any other purpose under this AgreementAgreement (including but not limited to determining the availability or amount of any covenant baskets or carve-outs (including the determination of amounts available under Section 7.05), such that no Event of Default shall be deemed to have occurred and be continuing), by an amount equal to the Cure Amount;; provided that (1) the receipt by the Borrower of the Cure Amount pursuant to the Cure Right shall be deemed to have no other effect whatsoever under this Agreement (including but not limited to determining the availability or amount of any covenant baskets or carve-outs, such that no Event of Default shall be deemed to have occurred and be continuing) and (2) no Cure Amount shall reduce Indebtedness on a Pro Forma Basis for the applicable period for purposes of calculating the Leverage Covenant or calculating the First Lien Net Leverage Ratio, nor shall any Cure Amount held by the Borrower Parties qualify as “unrestricted cash or Cash Equivalents of the Borrower Parties” for the purposes of calculating any net obligations or liabilities under the terms of this Agreement; and
(bii) if, after giving effect to the foregoing pro forma adjustment (without giving effect to any portion of the Cure Amount on the balance sheet of the Borrower and its Restricted Subsidiaries with respect to such fiscal quarter only but with giving pro forma effect to any portion of the Cure Amount applied to any repayment of any Indebtedness)recalculations, the Borrower and its Restricted Subsidiaries shall then be in compliance with the requirements of the Financial Performance CovenantsLeverage Covenant, the Borrower and its Restricted Subsidiaries shall be deemed to have satisfied the requirements of the Financial Performance Leverage Covenant as of the relevant date of determination with the same effect as though there had been no failure to comply therewith at such date, and the applicable breach or default of the Financial Performance Leverage Covenant that had occurred shall be deemed cured for the purposes of this AgreementAgreement (and any other Default or Event of Default as a result thereof, including the failure to meet any condition requiring no Default or Event of Default based solely on the basis of any actual or purported Event of Default under the Leverage Covenant); and
(ciii) upon receipt by the Administrative Agent of written notice, on or prior to the Anticipated Cure Deadline, that the Borrower intends to exercise the Cure Right in respect of a fiscal quarter, the Lenders shall not be permitted to accelerate Loans held by them, or to exercise remedies against the Collateral on the basis of a failure to comply with the requirements of the Leverage Covenant, unless such failure is not cured pursuant to the exercise of the Cure Right on or prior to the Anticipated Cure Deadline.
(b) Notwithstanding anything herein to the contrary, (i) in each four consecutive fiscal fiscal-quarter period of the Borrower there shall be at least two fiscal quarters in respect of which the Cure Right is not exercised, (ii) there can be no more than five fiscal quarters in respect of which the Cure Right is exercised during the term of the Facilities and (iii) for purposes of this AgreementSection 8.03, the Cure Right shall not be exercised more than five times, (iii) the Cure Amount utilized shall be no greater than the minimum amount required for purposes of complying to remedy the applicable failure to comply with the Financial Performance Leverage Covenant (or if only the Leverage Covenant under the Senior Credit Agreement is violated and any amounts in excess thereof shall not be deemed the Leverage Covenant hereunder, to be a Cure Amount and (iv) the Lenders shall not be required to make a Loan or issue, amend, renew or extend any Letter of Credit unless and until the Borrower has received the Cure Amount required to cause the Borrower and the Restricted Subsidiaries to be in compliance comply with the Financial Performance Covenants. Notwithstanding any other provision in this Agreement to Leverage Covenant under the contrary, the Cure Amount received pursuant to any exercise of the Cure Right shall be disregarded for purposes of determining the Available Amount, the Available Equity Amount, any financial ratio-based conditions or tests, pricing or any available basket under Article VI of this Senior Credit Agreement).
Appears in 2 contracts
Samples: Subordination Agreement (KLDiscovery Inc.), Subordination Agreement (KLDiscovery Inc.)
Right to Cure. Notwithstanding anything to the contrary contained in Section 7.018.01, in the event that the Parent Borrower and its Restricted Subsidiaries fail fails (or, but for the operation of this Section 8.02, would fail) to comply with the requirements of the Financial Performance Covenant Covenant, as of the last day of any fiscal quarter of the BorrowerFiscal Quarter, at any time after the beginning of such fiscal quarter last day until the expiration of the 10th Business Day following day that is 10 days after the date on which the financial statements with respect to certificate calculating the Financial Performance Covenant for such fiscal quarter (or the fiscal year ended on the last day of such fiscal quarter) are Fiscal Quarter is required to be delivered pursuant to Section 5.01(a) 6.02, Holdings or Section 5.01(b), the Parent Borrower or any Parent Entity thereof shall have the right to issue common Equity Interests or other Equity Interests (provided such other Equity Interests are reasonably satisfactory to the Administrative Agent) Permitted Cure Securities for cash or otherwise receive cash contributions to the capital of the Parent Borrower as cash common Equity Interests or other Equity Interests (provided such other Equity Interests are reasonably satisfactory to the Administrative Agent) (collectively, the “Cure Right”), and upon which cash shall be contributed as common equity to the receipt by the Parent Borrower of the Net Proceeds of (such issuance that are not otherwise applied (contributed amount, the “Cure Amount”) pursuant to the exercise by the Borrower of such Cure Right ), such Financial Performance Covenant shall be recalculated giving effect to the following pro forma adjustment:
(a) by increasing Consolidated EBITDA shall be increased with respect to such applicable fiscal quarter Fiscal Quarter and any four fiscal four-quarter period that contains such fiscal quarterFiscal Quarter, solely for the purpose of measuring the Financial Performance Covenant and not for any other purpose under this Agreement, Agreement by an amount equal to the Cure Amount;
; provided, that, (bi) ifin each four-Fiscal Quarter period there shall be no more than two Fiscal Quarters in which the Cure Right is exercised, (ii) no more than four Cure Rights will be exercised in the aggregate during the term of this Agreement, (iii) for purposes of this Section 8.02, the Cure Amount that is given effect shall be no greater than the amount required for purposes of complying with the Financial Performance Covenant and (iv) for the avoidance of doubt, in recalculating the Financial Performance Covenant by increasing Consolidated EBITDA as set forth above, there shall be no pro forma effect given to any reduction of Indebtedness with the Cure Amount in such recalculation of the Financial Performance Covenant. If, after giving effect to the foregoing pro forma adjustment (without giving effect to any portion of the Cure Amount on the balance sheet of the Borrower and its Restricted Subsidiaries with respect to such fiscal quarter only but with giving pro forma effect to any portion of the Cure Amount applied to any repayment of any Indebtedness)adjustments in this paragraph, the Borrower and its Restricted Subsidiaries Borrowers shall then be in compliance with the requirements of the Financial Performance CovenantsCovenant, the Borrower and its Restricted Subsidiaries Borrowers shall be deemed to have satisfied the requirements of the Financial Performance Covenant as of the relevant date of determination with the same effect as though there had been no failure to comply therewith at such date, and the applicable breach or default of the Financial Performance Covenant that had occurred shall be deemed cured for the purposes of this Agreement; and
(c) Notwithstanding anything herein to the contrary, (i) in each four consecutive fiscal quarter period of the Borrower there shall be at least two fiscal quarters in which the Cure Right is not exercised, (ii) during the term of this Agreement, the Cure Right shall not be exercised more than five times, (iii) the Cure Amount shall be no greater than the amount required for purposes of complying with the Financial Performance Covenant and any amounts in excess thereof shall not be deemed to be a Cure Amount and (iv) the Lenders shall not be required to make a Loan or issue, amend, renew or extend any Letter of Credit unless and until the Borrower has received the Cure Amount required to cause the Borrower and the Restricted Subsidiaries to be in compliance with the Financial Performance Covenants. Notwithstanding any other provision in this Agreement to the contrary, the Cure Amount received pursuant to any exercise of the Cure Right shall be disregarded for purposes of determining the Available Amount, the Available Equity Amount, any financial ratio-based conditions or tests, pricing or any available basket under Article VI of this Agreement.
Appears in 2 contracts
Samples: Credit Agreement (Leslie's, Inc.), Credit Agreement (Leslie's, Inc.)
Right to Cure. (a) Notwithstanding anything to the contrary contained in Section 7.01, in but subject to Sections 7.02(b) and (c), for the event that purpose of determining whether an Event of Default under the Borrower and its Restricted Subsidiaries fail to comply with the requirements Financial Covenant has occurred, Parent may on one or more occasions designate any portion of the Financial Performance Covenant as of the last day Net Proceeds from any sale or issuance of any fiscal quarter Equity Interests (other than Disqualified Equity Interests) of the Borrower, at any time after the beginning of such fiscal quarter until the expiration of the 10th Business Day following the date on which the financial statements with respect to such fiscal quarter Parent (or the fiscal year ended on the last day from any other contribution to capital or sale or issuance of such fiscal quarter) are required to be delivered pursuant to Section 5.01(a) or Section 5.01(b), the Borrower or any Parent Entity thereof shall have the right to issue common Equity Interests or other Equity Interests (provided such other Equity Interests are reasonably satisfactory to the Administrative Agent) for cash or otherwise receive cash contributions to the capital of the Borrower as cash common Equity Interests or other Equity Interests (provided such other Equity Interests are on terms reasonably satisfactory to the Administrative Agent) (collectively, the “Cure Right”), and upon the receipt by the Borrower of the Net Proceeds of such issuance that are not otherwise applied (the “Cure Amount”) pursuant as an increase to Consolidated EBITDA of Parent for the applicable fiscal quarter; provided that
(i) such amounts to be designated are actually received by Parent (i) on and after the first Business Day of the applicable fiscal quarter and (ii) on and prior to the exercise by tenth (10th) Business Day after the Borrower of such Cure Right such Financial Performance Covenant shall date on which financial statements are required to be recalculated giving effect to the following pro forma adjustment:
(a) Consolidated EBITDA shall be increased delivered with respect to such applicable fiscal quarter and (the “Cure Expiration Date”),
(ii) such amounts to be designated do not exceed the maximum aggregate amount necessary to cure any four Event of Default under the Financial Covenant as of such date and
(iii) Parent will have provided notice to the Administrative Agent on the date such amounts are designated as a “Cure Amount” (it being understood that to the extent such notice is provided in advance of delivery of a Compliance Certificate for the applicable period, the amount of such Net Proceeds that is designated as the Cure Amount may be lower than specified in such notice to the extent that the amount necessary to cure any Event of Default under the Financial Covenant is less than the full amount of such originally designated amount). The Cure Amount used to calculate Consolidated EBITDA for any fiscal quarter period will be used and included when calculating Consolidated EBITDA for each Reference Period that contains includes such fiscal quarter. The parties hereby acknowledge that this Section 7.02(a) may not be relied on for purposes of calculating any financial ratios other than as applicable to the Financial Covenant (and may not be included for purposes of determining pricing, solely mandatory prepayments and the availability or amount permitted pursuant to any covenant under Article VI) and may not result in any adjustment to any amounts (including the amount of Indebtedness) or increase in cash with respect to the fiscal quarter with respect to which such Cure Amount was received other than the amount of the Consolidated EBITDA referred to in the immediately preceding sentence (but for the purpose avoidance of measuring the Financial Performance Covenant and not for any other purpose under this Agreement, by an amount equal doubt may be applied to prepay Indebtedness in a subsequent fiscal quarter). Notwithstanding anything to the Cure Amount;
contrary contained in Section 7.01, (bA) if, after giving effect to the foregoing pro forma adjustment (without giving effect to any portion upon designation of the Cure Amount on by Parent in an amount necessary to cure any Event of Default under the balance sheet of the Borrower and its Restricted Subsidiaries with respect to such fiscal quarter only but with giving pro forma effect to any portion of the Cure Amount applied to any repayment of any Indebtedness)Financial Covenant, the Borrower and its Restricted Subsidiaries shall then be in compliance with the requirements of the Financial Performance Covenants, the Borrower and its Restricted Subsidiaries shall Covenant will be deemed to have satisfied the requirements of the Financial Performance Covenant and complied with as of the end of the relevant date of determination fiscal quarter with the same effect as though there had been no failure to comply therewith at such date, with the Financial Covenant and no Event of Default under the applicable breach or default Financial Covenant (and any other Default as a result thereof) will be deemed to have occurred for purposes of the Loan Documents, (B) from and after the date that Parent delivers a written notices to the Administrative Agent that it intends to exercise its cure right under this Section 7.02 neither the Administrative Agent nor any Lender may exercise any rights or remedies under Section 7.01 (or under any other Loan Document) on the basis of any actual or purported Event of Default under the Financial Performance Covenant that had (and any other Default as a result thereof) until and unless the Cure Expiration Date has occurred without the Cure Amount having been designated and (C) the Loan Parties shall not be deemed cured for able to obtain any Borrowing hereunder until receipt by the purposes Administrative Agent of this Agreement; andthe notice described in Section 7.02(a)(iii) from Parent.
(cb) Notwithstanding anything herein to the contrary, (i) in In each period of four consecutive fiscal quarter period of the Borrower quarters, there shall be at least no more than two (2) fiscal quarters in which the Cure Right cure right set forth in Section 7.02(a) is not exercised, .
(iic) There shall be no more than five (5) fiscal quarters in which the cure rights set forth in Section 7.02(a) are exercised during the term of this Agreement; provided that, so long as the Cure Right shall not Revolving Commitments incurred on the Effective Date have matured or been terminated, there may be an additional fiscal quarter after the Maturity Date applicable to such Revolving Commitments in which the cure rights set forth in this Section 7.02 are exercised more than five times, (iii) during the Cure Amount shall be no greater than the amount required for purposes term of complying with the Financial Performance Covenant and any amounts in excess thereof shall not be deemed to be a Cure Amount and (iv) the Lenders shall not be required to make a Loan or issue, amend, renew or extend any Letter of Credit unless and until the Borrower has received the Cure Amount required to cause the Borrower and the Restricted Subsidiaries to be in compliance with the Financial Performance Covenants. Notwithstanding any other provision in this Agreement to the contrary, the Cure Amount received pursuant to any exercise of the Cure Right shall be disregarded for purposes of determining the Available Amount, the Available Equity Amount, any financial ratio-based conditions or tests, pricing or any available basket under Article VI of this AgreementRevolving Commitments.
Appears in 2 contracts
Samples: Credit Agreement (Endo, Inc.), Credit Agreement (Endo, Inc.)
Right to Cure. (a) Notwithstanding anything to the contrary contained in Section 7.01, in but subject to Sections 7.02(b) and (c), for the event that purpose of determining whether an Event of Default under the Borrower and its Restricted Subsidiaries fail to comply with the requirements Financial Covenant has occurred, Parent may on one or more occasions designate any portion of the Financial Performance Covenant as of the last day Net Proceeds from any sale or issuance of any fiscal quarter Equity Interests (other than Disqualified Equity Interests) of the Borrower, at any time after the beginning of such fiscal quarter until the expiration of the 10th Business Day following the date on which the financial statements with respect to such fiscal quarter Parent (or the fiscal year ended on the last day from any other contribution to capital or sale or issuance of such fiscal quarter) are required to be delivered pursuant to Section 5.01(a) or Section 5.01(b), the Borrower or any Parent Entity thereof shall have the right to issue common Equity Interests or other Equity Interests (provided such other Equity Interests are reasonably satisfactory to the Administrative Agent) for cash or otherwise receive cash contributions to the capital of the Borrower as cash common Equity Interests or other Equity Interests (provided such other Equity Interests are on terms reasonably satisfactory to the Administrative Agent) (collectively, the “Cure Right”), and upon the receipt by the Borrower of the Net Proceeds of such issuance that are not otherwise applied (the “Cure Amount”) pursuant as an increase to Consolidated EBITDA of Parent for the applicable fiscal quarter; provided that
(i) such amounts to be designated are actually received by Parent (i) on and after the first Business Day of the applicable fiscal quarter and (ii) on and prior to the exercise by tenth (10th) Business Day after the Borrower of such Cure Right such Financial Performance Covenant shall date on which financial statements are required to be recalculated giving effect to the following pro forma adjustment:
(a) Consolidated EBITDA shall be increased delivered with respect to such applicable fiscal quarter and (the “Cure Expiration Date”),
(ii) such amounts to be designated do not exceed the maximum aggregate amount necessary to cure any four Event of Default under the Financial Covenant as of such date and
(iii) Parent will have provided notice to the Administrative Agent on the date such amounts are designated as a “Cure Amount” (it being understood that to the extent such notice is provided in advance of delivery of a Compliance Certificate for the applicable period, the amount of such Net Proceeds that is designated as the Cure Amount may be lower than specified in such notice to the extent that the amount necessary to cure any Event of Default under the Financial Covenant is less than the full amount of such originally designated amount). The Cure Amount used to calculate Consolidated EBITDA for any fiscal quarter period will be used and included when calculating Consolidated EBITDA for each Reference Period that contains includes such fiscal quarter. The parties hereby acknowledge that this Section 7.02(a) may not be relied on for purposes of calculating any financial ratios other than as applicable to the Financial Covenant (and may not be included for purposes of determining pricing, solely mandatory prepayments and the availability or amount permitted pursuant to any covenant under Article VI) and may not result in any adjustment to any amounts (including the amount of Indebtedness) or increase in cash with respect to the fiscal quarter with respect to which such Cure Amount was received other than the amount of the Consolidated EBITDA referred to in the immediately preceding sentence (but for the purpose avoidance of measuring the Financial Performance Covenant and not for any other purpose under this Agreement, by an amount equal doubt may be applied to prepay Indebtedness in a subsequent fiscal quarter). Notwithstanding anything to the Cure Amount;
contrary contained in Section 7.01, (bA) if, after giving effect to the foregoing pro forma adjustment (without giving effect to any portion upon designation of the Cure Amount on by Parent in an amount necessary to cure any Event of Default under the balance sheet of the Borrower and its Restricted Subsidiaries with respect to such fiscal quarter only but with giving pro forma effect to any portion of the Cure Amount applied to any repayment of any Indebtedness)Financial Covenant, the Borrower and its Restricted Subsidiaries shall then be in compliance with the requirements of the Financial Performance Covenants, the Borrower and its Restricted Subsidiaries shall Covenant will be deemed to have satisfied the requirements of the Financial Performance Covenant and complied with as of the end of the relevant date of determination fiscal quarter with the same effect as though there had been no failure to comply therewith at such date, with the Financial Covenant and no Event of Default under the applicable breach or default Financial Covenant (and any other Default as a result thereof) will be deemed to have occurred for purposes of the Loan Documents, (B) from and after the date that Parent delivers a written notices to the Administrative Agent that it intends to exercise its cure right under this Section 7.02 neither the Administrative Agent nor any Lender may exercise any rights or remedies under Section 7.01 (or under any other Loan Document) on the basis of any actual or purported Event of Default under the Financial Performance Covenant that had (and any other Default as a result thereof) until and unless the Cure Expiration Date has occurred without the Cure Amount having been designated and (C) the Loan Parties shall not be deemed cured for able to obtain any Borrowing hereunder until receipt by the purposes Administrative Agent of this Agreement; andthe notice described in 7.02(a)(iii) from Parent.
(cb) Notwithstanding anything herein to the contrary, (i) in In each period of four consecutive fiscal quarter period of the Borrower quarters, there shall be at least no more than two (2) fiscal quarters in which the Cure Right cure right set forth in Section 7.02(a) is not exercised, .
(iic) There shall be no more than five (5) fiscal quarters in which the cure rights set forth in Section 7.02(a) are exercised during the term of this Agreement; provided that, so long as the Cure Right shall not Revolving Commitments incurred on the Closing Date have matured or been terminated, there may be an additional fiscal quarter after the Maturity Date applicable to such Revolving Commitments in which the cure rights set forth in this Section 7.02 are exercised more than five times, (iii) during the Cure Amount shall be no greater than the amount required for purposes term of complying with the Financial Performance Covenant and any amounts in excess thereof shall not be deemed to be a Cure Amount and (iv) the Lenders shall not be required to make a Loan or issue, amend, renew or extend any Letter of Credit unless and until the Borrower has received the Cure Amount required to cause the Borrower and the Restricted Subsidiaries to be in compliance with the Financial Performance Covenants. Notwithstanding any other provision in this Agreement to the contrary, the Cure Amount received pursuant to any exercise of the Cure Right shall be disregarded for purposes of determining the Available Amount, the Available Equity Amount, any financial ratio-based conditions or tests, pricing or any available basket under Article VI of this AgreementRevolving Commitments.
Appears in 2 contracts
Samples: Amendment and Restatement Agreement (Endo International PLC), Credit Agreement (Endo International PLC)
Right to Cure. (a) Notwithstanding anything to the contrary contained in Section 7.018.01 or 8.02, in the event that the Borrower and its Restricted Subsidiaries fail fails to comply with the requirements of the Financial Performance Covenant as Covenant, then (A) from the end of the last day of any most recently ended fiscal quarter of the Borrower, at any time after the beginning of such fiscal quarter Borrower until the expiration of the 10th tenth Business Day following subsequent to the date on which the financial statements with respect to such fiscal quarter (or the fiscal year ended on the last day of such fiscal quarter) are relevant Compliance Certificate is required to be delivered pursuant to Section 5.01(a6.02(b) or Section 5.01(b(the last day of such period being the “Anticipated Cure Deadline”), the Borrower or any Parent Entity thereof Holdings Topco shall have the right to issue common Equity Interests or other Equity Interests (provided such other Equity Interests are reasonably satisfactory to the Administrative Agent) for cash or otherwise receive cash contributions to the capital of the Borrower as cash common Equity Interests or other Equity Interests (provided such other Equity Interests are reasonably satisfactory to the Administrative Agent) (collectively, the “Cure Right”) to issue common Equity Interests, preferred equity certificates and/or convertible preferred equity certificates (so long as such preferred equity certificates and convertible preferred equity certificates do not constitute Disqualified Stock) or in another form reasonably acceptable to the Blackstone Credit Representative for cash and contribute the proceeds therefrom in the form of common Equity Interests, to the Borrower or obtain a contribution to Holdings Topco’s equity (which shall be in the form of common Equity Interests, preferred equity certificates and/or convertible preferred equity certificates (so long as such preferred equity certificates and convertible preferred equity certificates do not constitute Disqualified Stock) or otherwise in a form reasonably acceptable to the Blackstone Credit Representative (the “Cure Equity”) and contribute the proceeds therefrom in the form of common Equity Interests to the Borrower), and upon the receipt by the Borrower of the Net Proceeds of such issuance that are not otherwise applied cash (the “Cure Amount”) ), pursuant to the exercise by the Borrower of such Cure Right such Right, the calculation of Consolidated EBITDA as used in the Financial Performance Covenant shall be recalculated giving effect to the following pro forma adjustmentadjustments:
(ai) Consolidated EBITDA shall be increased with respect to for such applicable fiscal quarter (and for any four fiscal quarter subsequent period that contains includes such fiscal quarter) shall be increased, solely for the purpose of measuring the Financial Performance Covenant and not for any other purpose under this AgreementAgreement (including but not limited to determining the availability or amount of any covenant baskets or carve-outs (including the determination of amounts available under Section 7.05) or determining the Applicable Commitment Fee or Applicable Rate, provided that, in determining the Applicable Commitment Fee or the Applicable Rate, effect shall be given to the relevant Cure Amount for purposes of clause (y) in the respective definitions thereof, such that no Event of Default shall be deemed to have occurred and be continuing), by an amount equal to the Cure Amount;; provided that (1) the receipt by the Borrower of the Cure Amount pursuant to the Cure Right shall be deemed to have no other effect whatsoever under this Agreement (including but not limited to determining the availability or amount of any covenant baskets or carve-outs or determining the Applicable Commitment Fee or Applicable Rate, provided that, in determining the Applicable Commitment Fee or the Applicable Rate, effect shall be given to the relevant Cure Amount for purposes of clause (y) in the respective definitions thereof, such that no Event of Default shall be deemed to have occurred and be continuing) and (2) no Cure Amount shall reduce Indebtedness on a Pro Forma Basis for the applicable period for purposes of calculating the Financial Covenant or calculating the First Lien Net Leverage Ratio, nor shall any Cure Amount held by the Borrower Parties qualify as “unrestricted cash or Cash Equivalents of the Borrower Parties” for the purposes of calculating any net obligations or liabilities under the terms of this Agreement; and
(bii) if, after giving effect to the foregoing pro forma adjustment (without giving effect to any portion of the Cure Amount on the balance sheet of the Borrower and its Restricted Subsidiaries with respect to such fiscal quarter only but with giving pro forma effect to any portion of the Cure Amount applied to any repayment of any Indebtedness)recalculations, the Borrower and its Restricted Subsidiaries shall then be in compliance with the requirements of the Financial Performance CovenantsCovenant, the Borrower and its Restricted Subsidiaries shall be deemed to have satisfied the requirements of the Financial Performance Covenant as of the relevant date of determination with the same effect as though there had been no failure to comply therewith at such date, and the applicable breach or default of the Financial Performance Covenant that had occurred shall be deemed cured for the purposes of this AgreementAgreement (and any other Default or Event of Default as a result thereof, including the failure to meet any condition requiring no Default or Event of Default based solely on the basis of any actual or purported Event of Default under the Financial Covenant); and
(ciii) upon receipt by the Administrative Agent of written notice, on or prior to the Anticipated Cure Deadline, that the Borrower intends to exercise the Cure Right in respect of a fiscal quarter, the Lenders and in the case of clause (ii) below, the L/C Issuers (i) shall not be permitted to accelerate Loans held by them, to terminate the Revolving Credit Commitments held by them or to exercise remedies against the Collateral on the basis of a failure to comply with the requirements of the Financial Covenant, unless such failure is not cured pursuant to the exercise of the Cure Right on or prior to the Anticipated Cure Deadline and (ii) shall not be obligated to make any Credit Extension under the Revolving Credit Facility.
(b) Notwithstanding anything herein to the contrary, (i) in each four consecutive fiscal fiscal-quarter period of the Borrower there shall be at least two fiscal quarters in respect of which the Cure Right is not exercised, (ii) there can be no more than five fiscal quarters in respect of which the Cure Right is exercised during the term of the Facilities and (iii) for purposes of this AgreementSection 8.03, the Cure Right shall not be exercised more than five times, (iii) the Cure Amount utilized shall be no greater than the minimum amount required for purposes of complying to remedy the applicable failure to comply with the Financial Performance Covenant and any amounts in excess thereof shall not be deemed to be a Cure Amount and (iv) the Lenders shall not be required to make a Loan or issue, amend, renew or extend any Letter of Credit unless and until the Borrower has received the Cure Amount required to cause the Borrower and the Restricted Subsidiaries to be in compliance with the Financial Performance Covenants. Notwithstanding any other provision in this Agreement to the contrary, the Cure Amount received pursuant to any exercise of the Cure Right shall be disregarded for purposes of determining the Available Amount, the Available Equity Amount, any financial ratio-based conditions or tests, pricing or any available basket under Article VI of this AgreementCovenant.
Appears in 2 contracts
Samples: Credit Agreement (KLDiscovery Inc.), Credit Agreement (KLDiscovery Inc.)
Right to Cure. Notwithstanding anything to the contrary contained in Section 7.01, in the event that the Borrower and its Restricted Subsidiaries fail fails to comply with the requirements of the Financial Performance Maintenance Covenant as of the last day of any fiscal quarter of the BorrowerFiscal Quarter, at any time after the beginning of such fiscal quarter until the expiration of the 10th tenth Business Day following subsequent to the date on which the financial statements with respect to such fiscal quarter (or the fiscal year ended on the last day of such fiscal quarter) are required to be delivered pursuant to Section 5.01(a) or Section 5.01(b), the Borrower or any Parent Entity thereof as applicable, Holdings shall have the right to issue common Qualified Equity Interests or other Equity Interests (provided such other Equity Interests are reasonably satisfactory to the Administrative AgentAgent (but excluding Disqualified Equity Interests) (each such issuance taken pursuant and in accordance with this Section 7.02, a “Specified Equity Issuance”) for cash or otherwise receive cash contributions to the capital of the Borrower Holdings as cash common equity or other Qualified Equity Interests or other Equity Interests (provided such other Equity Interests are reasonably satisfactory to the Administrative Agent) , in each case, which are contributed to Holdings or the Borrower in the form of cash (collectively, the “Cure Right”), and upon the receipt by Holdings or the Borrower Borrower, as applicable, of the Net Proceeds of such issuance that are not otherwise applied Not Otherwise Applied (the “Cure Amount”) pursuant to the exercise by the Borrower Holdings of such Cure Right such Financial Performance Maintenance Covenant shall be recalculated giving effect to the following pro forma adjustment:
(a) Consolidated EBITDA shall be increased with respect to such applicable fiscal quarter and any four fiscal quarter period that contains such fiscal quarter, solely for the purpose of measuring the Financial Performance Maintenance Covenant and not for any other purpose under this Agreement, by an amount equal to the Cure Amount;
(b) if, after giving effect to the foregoing pro forma adjustment recalculation (without giving effect netting against the calculation of Consolidated Total Net Debt with respect to such fiscal quarter only any portion of the Cure Amount on the balance sheet of Holdings and the Borrower and its Restricted Subsidiaries with respect to such fiscal quarter only but with and without giving pro forma effect to any portion of the Cure Amount applied to any repayment of any IndebtednessIndebtedness in connection therewith), Holdings and the Borrower and its Restricted Subsidiaries shall then be in compliance with the requirements of the Financial Performance CovenantsMaintenance Covenant, Holdings and the Borrower and its Restricted Subsidiaries shall be deemed to have satisfied the requirements of the Financial Performance Maintenance Covenant as of the relevant date of determination with the same effect as though there had been no failure to comply therewith at such date, and the applicable breach or default of the Financial Performance Maintenance Covenant that had occurred shall be deemed cured for the purposes of this Agreement; and;
(c) Notwithstanding upon the Administrative Agent’s receipt of a written notice from the Borrower that the Borrower intends to exercise the Cure Right (a “Notice of Intent to Cure”), until the tenth Business Day following the date on which financial statements for the fiscal quarter to which such Notice of Intent to Cure relates are required to be delivered pursuant to Section 5.01(a) or (b), as applicable, neither the Administrative Agent (nor any sub-agent therefor) nor any Lender shall exercise any right to accelerate the Loans or terminate the Revolving Commitments, and none of the Administrative Agent (nor any sub-agent therefor) nor any Lender or Secured Party shall exercise any right to foreclose on or take possession of the Collateral or any other right or remedy under the Loan Documents solely on the basis of the relevant failure to comply with Section 6.10;
(d) there shall be no pro forma or other reduction of the amount of Indebtedness by the amount of any Cure Amount for purposes of determining compliance with Section 6.10 for the fiscal quarter in respect of which the Cure Right was exercised (other than, with respect to any future period, to the extent that any portion of such Cure Amount is actually applied to repay Indebtedness under the Credit Facilities);
(e) notwithstanding anything herein to the contrary, (i) in each four consecutive fiscal quarter period of the Borrower there shall be at least two fiscal quarters (which may, but are not required to be, consecutive) in which the Cure Right is not exercised, (ii) during the term of this Agreement, the Cure Right shall not be exercised more than five times, times and (iii) for purposes of this Section 7.02, the Cure Amount shall be no greater than the amount required for purposes of complying with the Financial Performance Covenant and any amounts in excess thereof shall not be deemed to be a Cure Amount and (iv) the Lenders shall not be required to make a Loan or issue, amend, renew or extend any Letter of Credit unless and until the Borrower has received the Cure Amount required to cause the Borrower and the Restricted Subsidiaries to be in compliance with the Financial Performance CovenantsMaintenance Covenant. Notwithstanding any other provision in this Agreement to the contrary, during any Test Period in which any Cure Amount is included in the calculation of Consolidated EBITDA as a result of any exercise of the Cure Right, the Cure Amount received pursuant to any exercise of the Cure Right shall be (A) counted solely as an increase to Consolidated EBITDA for the purpose of determining compliance with Section 6.10 and (B) disregarded for purposes of determining the Available Amount, the Available Equity Amount, any financial ratio-based conditions or testsprovisions, pricing or any available basket under Article VI of this Agreement; and
(f) no Revolving Lender or Issuing Bank shall be required to make any Revolving Loan or issue any Letter of Credit from and after such time as the Administrative Agent has received the Notice of Intent to Cure unless and until the Cure Amount is actually received.
Appears in 1 contract
Right to Cure. (a) Notwithstanding anything to the contrary contained in Section 7.01, in the event that the Borrower and its Restricted Subsidiaries fail to comply with the requirements of the Financial Performance Covenant as of the last day of any fiscal quarter applicable Fiscal Quarter of the Borrower, at any time after the beginning end of such fiscal quarter Fiscal Quarter and until the expiration of the 10th tenth (10th) Business Day following subsequent to the date on which the financial statements with respect to such fiscal quarter Fiscal Quarter (or the fiscal year Fiscal Year ended on the last day of such fiscal quarterFiscal Quarter) are required to be delivered pursuant to Section 5.01(a) or Section 5.01(b(b), as applicable (such period, the Borrower or any Parent Entity thereof “Cure Period”), Holdings shall have the right to issue common Equity Interests or other Qualified Equity Interests (provided such other Equity Interests are reasonably satisfactory than to the Administrative AgentBorrower or a Subsidiary) for cash or otherwise receive cash contributions to the capital of Holdings (other than from the Borrower or a Subsidiary) as cash common Equity Interests equity or other Qualified Equity Interests (provided such other Equity Interests are reasonably satisfactory which, in either case, Holdings shall contribute as cash common equity to the Administrative AgentBorrower) (collectively, the “Cure Right”), and upon the receipt by the Borrower of 100% of the Net Proceeds cash proceeds of such issuance that are not otherwise applied (the “Cure Amount”) pursuant to the exercise by the Borrower Holdings of such Cure Right such the Financial Performance Covenant shall be recalculated giving effect to the following pro forma adjustment:
(ai) Consolidated EBITDA shall be increased with respect to such applicable fiscal quarter Fiscal Quarter and any four fiscal quarter (4) Fiscal Quarter period that contains such fiscal quarterFiscal Quarter, solely for the purpose of measuring actual (as opposed to pro forma) compliance with the Financial Performance Covenant and not for any other purpose under this Agreement, by an amount equal to the Cure Amount;; and
(bii) if, after giving effect to the foregoing pro forma adjustment (without giving effect to any repayment of any Indebtedness with any portion of the Cure Amount or any portion of the Cure Amount on the balance sheet of the Borrower and its Restricted Subsidiaries Subsidiaries, in each case, in the Test Period with respect to such fiscal quarter only but with giving pro forma effect to any portion of which the Cure Amount applied to Right is exercised, provided that any repayment of any IndebtednessIndebtedness shall be given effect in subsequent Test Periods), the Borrower and its Restricted Subsidiaries shall then be in compliance with the requirements of the Financial Performance CovenantsCovenant, the Borrower and its Restricted Subsidiaries shall be deemed to have satisfied the requirements of the Financial Performance Covenant as of the relevant date of determination with the same effect as though there had been no failure to comply therewith at such date, and the applicable breach or default Default or Event of Default of the Financial Performance Covenant that had occurred shall be deemed cured for the purposes of this Agreement; andprovided that the Borrower shall have notified the Administrative Agent of the exercise of such Cure Right within five (5) Business Days prior to the issuance of the relevant Qualified Equity Interests for cash or the receipt of the cash contributions by Holdings.
(cb) Notwithstanding anything herein to the contrary, (i) in each four (4) consecutive fiscal quarter Fiscal Quarter period of the Borrower there shall be at least two fiscal quarters (2) Fiscal Quarters in which the Cure Right is not exercised, (ii) during the term of this Agreement, the Cure Right shall not be exercised more than five (5) times, and (iii) for purposes of this Section 7.02, the Cure Amount shall be no greater than the amount required for purposes of complying with the Financial Performance Covenant and any amounts in excess thereof shall not be deemed to be a Cure Amount and (iv) Amount; provided that any portion of any Indebtedness the Lenders shall not be required Borrower, at its sole option, chooses to make prepay with all or any portion of a Loan or issue, amend, renew or extend any Letter of Credit unless and until the Borrower has received the Cure Amount required shall be deemed to cause remain outstanding throughout the Borrower and the Restricted Subsidiaries to be Fiscal Quarter in compliance with the Financial Performance Covenantswhich such Cure Right was exercised but not in subsequent Fiscal Quarters. Notwithstanding any other provision in this Agreement to the contrary, (i) no increase in Consolidated EBITDA on account of the exercise of any Cure Right shall be applicable for any other purpose under this Agreement or any other Loan Document, including determining pricing, the availability or amount of any covenant basket, carve-out or compliance on a Pro Forma Basis with the Financial Performance Covenant or any other financial ratio, and (ii) there shall be no pro forma or other reduction of Indebtedness (including any Term Loans and including by way of cash netting) as a result of any Cure Amount in determining the Financial Performance Covenant (or any other leverage based test) for the applicable Fiscal Quarter in respect of which such Cure Right is exercised but any such reduction in Indebtedness shall be given effect for any subsequent period that includes such Fiscal Quarter. Upon receipt by the Administrative Agent of a written notice, prior to the end of the applicable Cure Period, that Holdings intends to exercise the Cure Amount received Right in respect of a Fiscal Quarter, none of the Administrative Agent, the Collateral Agent or the Lenders shall be permitted to accelerate Term Loans held by them, to terminate the Commitments or to exercise remedies against the Collateral solely on the basis of a failure to comply with the requirements of the Financial Performance Covenant, unless such failure is not cured pursuant to any the exercise of the Cure Right shall be disregarded for purposes on or prior to the end of determining the Available Amount, the Available Equity Amount, any financial ratio-based conditions or tests, pricing or any available basket under Article VI of this Agreementapplicable Cure Period.
Appears in 1 contract
Samples: Credit Agreement (Atlas Technical Consultants, Inc.)
Right to Cure. (a) Notwithstanding anything to the contrary contained in Section 7.018.01 or 8.02, in the event that the Borrower and its Restricted Subsidiaries fail fails to comply with the requirements of the Financial Performance Covenant as of the last day of with respect to any fiscal quarter of the Borrower, at any time after when the beginning Borrower is required to comply with such Financial Covenant pursuant to the terms thereof, then from the first day of such fiscal quarter until the expiration of the 10th fifteenth Business Day following the date on which the financial statements with Compliance Certificate is required to be delivered in respect to of such fiscal quarter pursuant to Section 6.02(a) (or the fiscal year ended on the last day of such fiscal quarter) are required to be delivered pursuant to Section 5.01(a) or Section 5.01(bperiod being the "Anticipated Cure Deadline"), the Borrower or any Parent Entity thereof shall have the right (the "Cure Right") to issue common Equity Interests Capital Stock or other Equity Interests Qualified Stock (provided such other Equity Interests are or preferred equity or convertible preferred equity reasonably satisfactory acceptable to the Administrative Agent) for cash cash, or obtain a contribution to its equity (which shall be in the form of common equity or Qualified Stock or otherwise receive cash contributions in form reasonably acceptable to the capital Administrative Agent) and contribute the proceeds therefrom in the form of common Capital Stock or Qualified Stock (or preferred equity or convertible preferred equity reasonably acceptable to the Borrower as cash Administrative Agent) or a contribution to its equity (which shall be in the form of common Equity Interests equity or other Equity Interests (provided such other Equity Interests are Qualified Stock or otherwise in a form reasonably satisfactory acceptable to the Administrative Agent) (collectively, the “"Cure Right”Equity"), and upon the receipt by the Borrower of the Net Proceeds of such issuance that are not otherwise applied cash (the “"Cure Amount”) "), pursuant to the exercise by the Borrower of such Cure Right such Right, the calculation of Consolidated EBITDA as used in the Financial Performance Covenant shall be recalculated giving effect to the following pro forma adjustmentadjustments:
(ai) Consolidated EBITDA shall be increased with respect to for such applicable fiscal quarter (and for any four fiscal quarter subsequent period that contains includes such fiscal quarter) shall be increased, solely for the purpose of measuring the Financial Performance Covenant and not for any other purpose under this Agreement, Agreement (including but not limited to determining the availability or amount of any covenant baskets or carve-outs (including the determination of amounts available under Section 7.05) or determining the Applicable Commitment Fee or Applicable Rate); provided that (1) the receipt by an amount equal the Borrower of the Cure Amount pursuant to the Cure Right shall be deemed to have no other effect on a consolidated basis under this Agreement (including but not limited to determining the availability or amount of any covenant baskets or carve-outs or determining the Applicable Commitment Fee or Applicable Rate, and (2) no Cure Amount shall reduce Indebtedness on a Pro Forma Basis for the fiscal quarter for which the Cure Right was exercised for purposes of calculating the Financial Covenant (whether as a result of a prepayment of the Loans or via netting of such Cure Amount;)); and
(bii) if, after giving effect to the foregoing pro forma adjustment (without giving effect to any portion of the Cure Amount on the balance sheet of the Borrower and its Restricted Subsidiaries with respect to such fiscal quarter only but with giving pro forma effect to any portion of the Cure Amount applied to any repayment of any Indebtedness)recalculations, the Borrower and its Restricted Subsidiaries shall then be in compliance with the requirements of the Financial Performance CovenantsCovenant, the Borrower and its Restricted Subsidiaries shall be deemed to have satisfied the requirements of the Financial Performance Covenant as of the relevant date of determination with the same effect as though there had been no failure to comply therewith at such date, and the applicable breach or default of the Financial Performance Covenant that had occurred (and any other Default as a result thereof, including the failure to meet any condition requiring no Default or Event of Default based solely on the basis of any actual or purported Event of Default under the Financial Covenant) shall be deemed cured for the purposes of this Agreement; and
(ciii) no Default or Event of Default shall be deemed to exist from the end of the applicable fiscal quarter until the Anticipated Cure Deadline, and the Lenders (i) shall not be permitted to accelerate Loans held by them, to terminate the Revolving Credit Commitments held by them or to exercise remedies against the Collateral on the basis of a failure to comply with the requirements of the Financial Covenant, unless such failure is not cured pursuant to the exercise of the Cure Right on or prior to the Anticipated Cure Deadline and (ii) shall not be obligated to make any Credit Extension under the Revolving Credit Facility until such Cure Amount has been received by the Borrower.
(b) Notwithstanding anything herein to the contrary, (i) in each four consecutive fiscal fiscal-quarter period of the Borrower there shall be at least no more than two consecutive fiscal quarters in respect of which the Cure Right is not exercised, (ii) there can be no more than five fiscal quarters in respect of which the Cure Right is exercised during the term of the Facilities and (iii) for purposes of this AgreementSection 8.03, the Cure Right shall not be exercised more than five times, (iii) the Cure Amount utilized shall be no greater than the minimum amount required for purposes of complying to remedy the applicable failure to comply with the Financial Performance Covenant.
(c) No Lender shall be required, from the date on which the Compliance Certificate is delivered with respect to the applicable fiscal quarter in which the Borrower fails to comply with the Financial Covenant and any amounts until such Cure Equity is received in excess thereof shall not be deemed to be a Cure Amount and (iv) accordance with the Lenders shall not be required terms of this Section 8.03 or such failure is waived in accordance with Section 10.01, to make a any Revolving Credit Loan or issue, amend, renew extend the expiry date thereof or extend increase the amount of any Letter of Credit unless and until the Borrower has received the Cure Amount required to cause the Borrower and the Restricted Subsidiaries to be in compliance with the Financial Performance Covenants. Notwithstanding any other provision in this Agreement to the contrary, the Cure Amount received pursuant to any exercise of the Cure Right shall be disregarded for purposes of determining the Available Amount, the Available Equity Amount, any financial ratio-based conditions or tests, pricing or any available basket under Article VI of this Agreement.
Appears in 1 contract
Right to Cure. Notwithstanding anything to the contrary contained in Section 7.01herein, in the event that the Borrower and its Restricted Subsidiaries fail fails to comply with the requirements of the Financial Performance Covenant as of the last day of set forth in Article V for any fiscal quarter of the BorrowerFiscal Quarter, at any time then: (a) after the beginning end of such fiscal quarter Fiscal Quarter and until the expiration of the 10th tenth Business Day following subsequent to the date on which the financial statements with respect to such fiscal quarter (or the fiscal year ended on the last day of such fiscal quarter) are relevant Compliance Certificate is required to be delivered pursuant to Section 5.01(a6.1(c) or Section 5.01(bwith respect to such Fiscal Quarter (the “Cure Deadline”), the Borrower or any Parent Entity thereof Holdings shall have the right to issue common Equity Interests or other Equity Interests (provided such other Equity Interests are reasonably satisfactory to the Administrative Agent) Permitted Cure Securities for cash or otherwise receive make a cash contributions to the capital of the Borrower as cash contribution for common Equity Interests or other Equity Interests equity (provided such other Equity Interests are reasonably satisfactory to the Administrative Agent) (collectively, the “Cure RightSpecified Equity Contribution”), and and, upon the receipt by the Borrower of the Net Proceeds of such issuance that are not otherwise applied (the “Cure Amount”) cash pursuant to the exercise by the Borrower of such Cure Right such Financial Performance Covenant Specified Equity Contribution, (x) for Specified Equity Contributions in respect of the covenant set forth in Section 5.1, the calculation of EBITDA as used in the covenant set forth in Section 5.1 shall be recalculated giving effect to the following pro forma adjustment:
(a) Consolidated adjustments: EBITDA shall be increased with respect to such applicable fiscal quarter and any four fiscal quarter period that contains such fiscal quarterincreased, solely for the purpose of measuring the covenant set forth in Section 5.1 for such Fiscal Quarter and for applicable subsequent Financial Performance Covenant Periods that include such Fiscal Quarter and not for any other purpose under this AgreementAgreement (including, but not limited to, calculating EBITDA for purposes of determining the availability or amount of any basket levels or carve-outs and for purposes of calculating Excess Cash Flow), by an amount equal to such Specified Equity Contribution; provided that the Cure Amount;
receipt by Borrower of such Specified Equity Contribution shall be deemed to have no other effect whatsoever under this Agreement for purposes of calculating EBITDA (bincluding, but not limited to, determining the availability or amount of any covenant baskets or carve-outs), (y) [reserved] and (z) for Specified Equity Contributions in respect of the covenant set forth in Section 5.3, the calculation of Liquidity as used in the covenant set forth in Section 5.3 shall be recalculated giving effect to the following pro forma adjustments: Liquidity shall be increased by an amount equal to such Specified Equity Contribution; provided that the receipt by Borrower of such Specified Equity Contribution shall be deemed to have no other effect whatsoever under this Agreement for purposes of calculating Liquidity; and if, after giving effect to the recalculations in the foregoing pro forma adjustment clauses (without giving effect to any portion of the Cure Amount on the balance sheet of the Borrower and its Restricted Subsidiaries with respect to such fiscal quarter only but with giving pro forma effect to any portion of the Cure Amount applied to any repayment of any Indebtednessx), the (y) and (z), as applicable, Borrower and its Restricted Subsidiaries shall then be in compliance with the requirements of the Financial Performance Covenantsapplicable covenant set forth in Article V, the Borrower and its Restricted Subsidiaries shall be deemed to have satisfied the requirements of the Financial Performance Covenant applicable covenant set forth in Article V as of the last day of the relevant date of determination Fiscal Quarter with the same effect as though there had been no failure to comply therewith at such date, and the applicable breach or default of the Financial Performance Covenant that had occurred applicable covenant set forth in Article V shall be deemed cured to have not occurred for the purposes of this Agreement; and
(c) Notwithstanding anything herein to the contrary, (i) in each four consecutive fiscal quarter period of the Borrower there shall be at least two fiscal quarters in which the Cure Right is not exercised, (ii) during the term of this Agreement, the Cure Right shall not be exercised more than five times, (iii) the Cure Amount shall be no greater than the amount required for purposes of complying with the Financial Performance Covenant and any amounts in excess thereof shall not be deemed to be a Cure Amount and (ivb) the Lenders shall not be permitted to accelerate Loans held by them or exercise remedies against the Collateral or exercise any other remedies hereunder, at law or in equity, on the basis of a failure to comply with the requirements of any covenant set forth in Article V until such failure is not cured pursuant to the exercise of the right to make a Specified Equity Contribution on or prior to the Cure Deadline. For the avoidance of doubt, no Lender shall be required to make a any Loan or issue, amend, renew or extend and no Issuer shall be required to Issue any Letter of Credit during the 10 Business Day period described in this Section 9.3(a) unless and until the Borrower has shall have received the Cure Amount required to cause the Borrower and the Restricted Subsidiaries to be in compliance with the Financial Performance Covenants. Notwithstanding any other provision in this Agreement to the contrary, the Cure Amount received pursuant to any exercise proceeds of the Cure Right shall be disregarded for purposes of determining the Available Amount, the Available such Specified Equity Amount, any financial ratio-based conditions or tests, pricing or any available basket under Article VI of this AgreementContribution.
Appears in 1 contract
Right to Cure. Notwithstanding anything to the contrary contained in Section 7.01, in the event that the Borrower Holdings and its Restricted Subsidiaries fail to comply with the requirements of the Financial Performance Covenant as of the last day of any fiscal quarter of the BorrowerHoldings, at any time after the beginning of such fiscal quarter until the expiration of the 10th Business Day following the date on which the financial statements with respect to such fiscal quarter (or the fiscal year ended on the last day of such fiscal quarter) are required to be delivered pursuant to Section 5.01(a) or Section 5.01(b), the Borrower Holdings or any Parent Entity thereof shall have the right to issue common Equity Interests or other Equity Interests (provided such other Equity Interests are reasonably satisfactory to the Administrative Agent) for cash or otherwise receive cash contributions to the capital of the Borrower Holdings as cash common Equity Interests or other Equity Interests (provided such other Equity Interests are reasonably satisfactory to the Administrative Agent) (collectively, the “Cure Right”), and upon the receipt by the Borrower Holdings of the Net Proceeds of such issuance that are not otherwise applied (the “Cure Amount”) pursuant to the exercise by the Borrower Holdings of such Cure Right such Financial Performance Covenant shall be recalculated giving effect to the following pro forma adjustment:
(a) Consolidated EBITDA shall be increased with respect to such applicable fiscal quarter and any four fiscal quarter period that contains such fiscal quarter, solely for the purpose of measuring the Financial Performance Covenant and not for any other purpose under this Agreement, by an amount equal to the Cure Amount;
(b) if, after giving effect to the foregoing pro forma adjustment (without giving effect to any portion of the Cure Amount on the balance sheet of the Borrower and its Restricted Subsidiaries with respect to such fiscal quarter only but with giving pro forma effect to any portion of the Cure Amount applied to any repayment of any Indebtedness), the Borrower and its Restricted Subsidiaries shall then be in compliance with the requirements of the Financial Performance Covenants, the Borrower and its Restricted Subsidiaries shall be deemed to have satisfied the requirements of the Financial Performance Covenant as of the relevant date of determination with the same effect as though there had been no failure to comply therewith at such date, and the applicable breach or default of the Financial Performance Covenant that had occurred shall be deemed cured for the purposes of this Agreement; and
(c) Notwithstanding notwithstanding anything herein to the contrary, (i) in each four consecutive fiscal quarter period of the Borrower there shall be at least two fiscal quarters in which the Cure Right is not exercised, (ii) during the term of this Agreement, the Cure Right shall not be exercised more than five times, times and (iii) the Cure Amount shall be no greater than the amount required for purposes of complying with the Financial Performance Covenant and any amounts in excess thereof shall not be deemed to be a Cure Amount and (iv) the Lenders shall not be required to make a Loan or issue, amend, renew or extend any Letter of Credit unless and until the Borrower has received the Cure Amount required to cause the Borrower and the Restricted Subsidiaries to be in compliance with the Financial Performance CovenantsAmount. Notwithstanding any other provision in this Agreement to the contrary, the Cure Amount received pursuant to any exercise of the Cure Right shall be disregarded for purposes of determining the Available Amount, the Available Equity Amount, any financial ratio-based conditions or tests, pricing or any available basket under Article VI of this Agreement.
Appears in 1 contract
Right to Cure. Notwithstanding anything to the contrary contained in Section 7.018.1, for purposes of determining whether a Financial Covenant Default has occurred, any equity contribution (in the event that form of cash common equity or other equity reasonably acceptable to the Administrative Agent) made to the Borrower and its Restricted Subsidiaries fail to comply with the requirements of the Financial Performance Covenant as of after the last day of any fiscal quarter of Fiscal Quarter and on or prior to the Borrower, at any time day that is [REDACTED – Time Period] after the beginning of such fiscal quarter until the expiration of the 10th Business Day following the date day on which the financial statements with respect to such fiscal quarter (or the fiscal year ended on the last day of such fiscal quarter) are required to be delivered pursuant to Section 5.01(a) or Section 5.01(b)for that Fiscal Quarter will, upon the delivery of a written request by the Borrower or any Parent Entity thereof shall have the right to issue common Equity Interests or other Equity Interests (provided such other Equity Interests are reasonably satisfactory to the Administrative Agent) for cash or otherwise receive cash contributions to the capital of the Borrower as cash common Equity Interests or other Equity Interests Agent (provided such other Equity Interests are reasonably satisfactory to the Administrative Agent) (collectivelyrequest, the “Cure RightNotice”), and upon be included as an addition in the receipt by the Borrower calculation of the Net Proceeds of such issuance that are not otherwise applied (the “Cure Amount”) pursuant to the exercise by the Borrower of such Cure Right such Financial Performance Covenant shall be recalculated giving effect to the following pro forma adjustment:
(a) Consolidated Adjusted EBITDA shall be increased with respect to such applicable fiscal quarter and any four fiscal quarter period that contains such fiscal quarter, solely for the purpose purposes of measuring calculating the Financial Performance Covenant on a Pro Forma Basis at the end of such Fiscal Quarter and any subsequent period that includes such Fiscal Quarter (any such equity contribution, a “Specified Equity Contribution”); provided that (a) the Borrower shall not for be permitted to so request that a Specified Equity Contribution be included as an addition in the calculation of Consolidated Adjusted EBITDA with respect to any other purpose under this Agreement, by an amount equal to the Cure Amount;
(b) ifFiscal Quarter unless, after giving effect to the foregoing pro forma adjustment (without giving effect to any portion of the Cure Amount on the balance sheet of the Borrower and its Restricted Subsidiaries with respect to such fiscal quarter only but with giving pro forma effect to any portion of the Cure Amount applied to any repayment of any Indebtedness), the Borrower and its Restricted Subsidiaries shall then be in compliance with the requirements of the Financial Performance Covenants, the Borrower and its Restricted Subsidiaries shall be deemed to have satisfied the requirements of the Financial Performance Covenant as of the relevant date of determination with the same effect as though there had been no failure to comply therewith at such date, and the applicable breach or default of the Financial Performance Covenant that had occurred shall be deemed cured for the purposes of this Agreement; and
(c) Notwithstanding anything herein to the contraryrequested Specified Equity Contribution, (ix) in each four consecutive fiscal quarter there will be a period of the Borrower there shall be at least two fiscal quarters (2) Fiscal Quarters in the Relevant Four Fiscal Quarter Period in which the Cure Right is not exercisedno Specified Equity Contribution has been made, and (iiy) during the term of this Agreement, the Cure Right shall not be exercised there have been no more than five times(5) Fiscal Quarters in which a Specified Equity Contribution has been made, (iiib) the Cure Amount shall amount of any Specified Equity Contribution and the use of proceeds therefrom will be no greater than the amount required for purposes of complying with the Financial Performance Covenant and any amounts in excess thereof shall not be deemed to be a Cure Amount and (iv) the Lenders shall not be required to make a Loan or issue, amend, renew or extend any Letter of Credit unless and until the Borrower has received the Cure Amount required to cause the Borrower and the Restricted Subsidiaries Senior Secured Net Leverage Ratio on a Pro Forma Basis to be in compliance with Section 6.10 and (c) all Specified Equity Contributions and the Financial Performance Covenants. Notwithstanding any other provision in this Agreement to the contrary, the Cure Amount received pursuant to any exercise use of the Cure Right shall proceeds therefrom will be disregarded for all other purposes under the Credit Documents (including calculating Cumulative Credit, Consolidated Adjusted EBITDA for purposes of determining the Available Amountbasket levels, the Available Equity Amount, any financial ratio-based conditions or tests, pricing or any available basket under Article VI of this Agreement.Applicable Margin and other items governed by reference to Consolidated
Appears in 1 contract
Samples: Credit and Guaranty Agreement (Concordia Healthcare Corp.)
Right to Cure. Notwithstanding anything to the contrary contained in Section 7.01, in the event that the Borrower and its Restricted Subsidiaries fail fails to comply with the requirements of the Financial Performance Covenant as of the last day of any fiscal quarter of the BorrowerMaintenance Covenants described in Section 6.13(a) and Section 6.13(b), at any time after from the beginning first day of such fiscal applicable quarter until the expiration of the 10th fifteenth Business Day following subsequent to the date on which the financial statements with respect to such fiscal quarter (or the fiscal year ended on the last day of such fiscal quarter) are required to be delivered pursuant to Section 5.01(a) or Section 5.01(b), as applicable, the Borrower (or any Parent Entity thereof thereof) shall have the right to issue common Qualified Equity Interests or other Equity Interests (provided such other Equity Interests are reasonably satisfactory to the Administrative AgentAgent (but excluding Disqualified Equity Interests) (each such issuance taken pursuant and in accordance with this Section 7.02, a “Specified Equity Issuance”) for cash or otherwise receive cash contributions to (or in the capital case of any other Parent Entity, receive equity interests in the Borrower for its cash contributions to) the Equity Interests (other than Disqualified Equity Interests) of the Borrower as cash common equity or other Qualified Equity Interests or other Equity Interests (provided such other Equity Interests are reasonably satisfactory to the Administrative Agent) , in each case, which are contributed to the Borrower in the form of cash (collectively, the “Cure Right”), and upon the receipt by the Borrower of the Net Proceeds of such issuance that are not otherwise applied Not Otherwise Applied (the “Cure Amount”) pursuant to the exercise by the Borrower of such Cure Right such Right, the Financial Performance Maintenance Covenant shall be recalculated giving pro form effect to the following pro forma adjustment:: (a)
(ai) Consolidated EBITDA and/or Consolidated Cash EBITDA shall be increased with respect to such applicable fiscal quarter with respect to which such Cure Amount is received by the Borrower and any four fiscal quarter period Test Period that contains includes such fiscal quarter, solely for the purpose of measuring the applicable Financial Performance Covenant Maintenance Covenant(s) and not for any other purpose under this Agreement, by an amount equal to the Cure Amount;
Amount and (ii) with respect to the LTV Covenant, Consolidated Total Net Debt shall be reduced by the portion of the Cure Amount that is actually applied to prepay such Indebtedness; (b) if, after giving effect to the foregoing pro forma adjustment (without giving effect to any portion of the Cure Amount on the balance sheet of the Borrower and its Restricted Subsidiaries with respect to such fiscal quarter only but with giving pro forma effect to any portion of the Cure Amount applied to any repayment of any Indebtedness)recalculation, the Borrower and its Restricted Subsidiaries shall then be in compliance with the requirements of the applicable Financial Performance CovenantsMaintenance Covenant(s), the Borrower and its Restricted Subsidiaries shall be deemed to have satisfied the requirements of the applicable Financial Performance Covenant Maintenance Covenant(s) as of the relevant date of determination with the same effect as though there had been no failure to comply therewith at such date, and the applicable breach or default of the applicable Financial Performance Covenant Maintenance Covenant(s) that had occurred shall be deemed cured for the purposes of this Agreement; and
(c) Notwithstanding anything herein to the contrary, (i) in each four consecutive fiscal quarter period of the Borrower there shall be at least two fiscal quarters in which the Cure Right is not exercised, (ii) during the term of this Agreement, the Cure Right shall not be exercised more than five times, (iii) the Cure Amount shall be no greater than the amount required for purposes of complying with the Financial Performance Covenant and any amounts in excess thereof shall not be deemed to be a Cure Amount and (iv) the Lenders shall not be required to make a Loan or issue, amend, renew or extend any Letter of Credit unless and until the Borrower has received the Cure Amount required to cause the Borrower and the Restricted Subsidiaries to be in compliance with the Financial Performance Covenants. Notwithstanding any other provision in this Agreement to the contrary, the Cure Amount received pursuant to any exercise of the Cure Right shall be disregarded for purposes of determining the Available Amount, the Available Equity Amount, any financial ratio-based conditions or tests, pricing or any available basket under Article VI of this Agreement.)
Appears in 1 contract
Samples: Credit Agreement (GoHealth, Inc.)
Right to Cure. Notwithstanding anything Mortgagor agrees that, at Mortgagee's option, in case ------------- Mortgagor shall fail to pay the same when due and such failure continues beyond notice and cure periods, to the contrary contained extent provided by applicable law, Mortgagee may pay any expense or item (including, but not limited to, taxes, rates, assessments, other charges, insurance premiums, maintenance and repair expenses, and expenses incurred in Section 7.01protection of the lien of this Mortgage) which Mortgagor herein agrees to pay; and may perform any acts or covenants which Mortgagor herein agrees to perform and shall fail to perform, and may add the same, and the expense thereof, including, but not limited to, reasonable counsel fees and other costs, charges and disbursements incurred by Mortgagee in connection therewith, to the Indebtedness or may, at its option, deduct the same from any part of money thereafter advanced and Mortgagor agrees to repay on demand, the same to Mortgagee, together with interest thereon at the rate set forth in the event that the Borrower and its Restricted Subsidiaries fail to comply with the requirements of the Financial Performance Covenant as of the last day of any fiscal quarter of the BorrowerNote, at any time after the beginning of such fiscal quarter until the expiration of the 10th Business Day following from the date on which such payment or expense is made or incurred by Mortgagee, and the financial statements with respect same shall be a lien upon the Mortgaged Property prior to such fiscal quarter (any right, title, interest, lien or the fiscal year ended on the last day of such fiscal quarter) are required to be delivered pursuant to Section 5.01(a) claim thereto or Section 5.01(b), the Borrower thereon attaching or any Parent Entity thereof shall have the right to issue common Equity Interests or other Equity Interests (provided such other Equity Interests are reasonably satisfactory accruing subsequent to the Administrative Agent) for cash or otherwise receive cash contributions to the capital lien of the Borrower as cash common Equity Interests or other Equity Interests (provided such other Equity Interests are reasonably satisfactory to the Administrative Agent) (collectively, the “Cure Right”), this Mortgage and upon the receipt by the Borrower of the Net Proceeds of such issuance that are not otherwise applied (the “Cure Amount”) pursuant to the exercise by the Borrower of such Cure Right such Financial Performance Covenant shall be recalculated giving effect to the following pro forma adjustment:
(a) Consolidated EBITDA shall be increased with respect to such applicable fiscal quarter and any four fiscal quarter period that contains such fiscal quarter, solely for the purpose of measuring the Financial Performance Covenant and not for any other purpose under this Agreement, by an amount equal to the Cure Amount;
(b) if, after giving effect to the foregoing pro forma adjustment (without giving effect to any portion of the Cure Amount on the balance sheet of the Borrower and its Restricted Subsidiaries with respect to such fiscal quarter only but with giving pro forma effect to any portion of the Cure Amount applied to any repayment of any Indebtedness), the Borrower and its Restricted Subsidiaries shall then be in compliance with the requirements of the Financial Performance Covenants, the Borrower and its Restricted Subsidiaries shall be deemed to have satisfied be secured by this Mortgage. Notwithstanding the requirements foregoing, Mortgagor may in good faith by appropriate proceedings and upon notice to Mortgagee, contest the validity, applicability or amount of the Financial Performance Covenant any asserted tax or assessment, so long as of the relevant date of determination with the same effect as though there had been no failure to comply therewith at such date, and the applicable breach or default of the Financial Performance Covenant that had occurred shall be deemed cured for the purposes of this Agreement; and
(c) Notwithstanding anything herein to the contrary, (i) in each four consecutive fiscal quarter period of the Borrower there shall be at least two fiscal quarters in which the Cure Right such contest is not exerciseddiligently pursued, (ii) during Mortgagee determines in its sole opinion, that such contest suspends the term obligation to pay the tax and that nonpayment of this Agreementsuch tax or assessment will not result in the sale, loss, forfeiture or diminution of the Cure Right shall not be exercised more than five timesMortgaged Property or any part thereof or any interest of Mortgagee therein, and (iii) prior to the Cure Amount earlier of the commencement of such contest or the delinquency date of the asserted tax or assessment, Mortgagor deposits with Mortgagee an amount determined by Mortgagee to be adequate to cover the payment of such tax or assessment and a reasonable additional sum to cover possible interest, costs and penalties; provided, however, that Mortgagor shall promptly cause to be paid any amount adjudged by a court of competent jurisdiction to be due, with all interest, costs and penalties thereon, promptly after such judgment becomes final; and provided further that in any event each such contest shall be no greater than concluded, the amount required for purposes of complying with the Financial Performance Covenant taxes, assessments, interests, costs and any amounts in excess thereof penalties shall not be deemed to be a Cure Amount and (iv) the Lenders shall not be required to make a Loan or issue, amend, renew or extend any Letter of Credit unless and until the Borrower has received the Cure Amount required to cause the Borrower and the Restricted Subsidiaries to be in compliance with the Financial Performance Covenants. Notwithstanding any other provision in this Agreement paid prior to the contrarydate any writ or order is issued under which the Mortgaged Property may be sold, the Cure Amount received pursuant to any exercise of the Cure Right shall be disregarded for purposes of determining the Available Amount, the Available Equity Amount, any financial ratio-based conditions lost or tests, pricing or any available basket under Article VI of this Agreementforfeited.
Appears in 1 contract
Samples: Open End Construction Mortgage Deed and Security Agreement (Proton Energy Systems Inc)
Right to Cure. (a) Notwithstanding anything to the contrary contained in Section 7.01, in the event that Holdings, the Borrower and its the Restricted Subsidiaries fail to comply with the requirements of the Financial Performance Covenant as of the last day of any fiscal quarter of the BorrowerHoldings, at any time after the beginning of such fiscal quarter until the expiration of the 10th Business Day following subsequent to the earlier of (i) the date on which a Compliance Certificate with respect to such fiscal quarter (or the fiscal year ended on the last day of such fiscal quarter) is delivered in accordance with Section 5.01(d) and (ii) the date on which the financial statements with respect to such fiscal quarter (or the fiscal year ended on the last day of such fiscal quarter) are required to be delivered pursuant to Section 5.01(a) or Section 5.01(b(b), as applicable (such date, the Borrower or any Parent Entity thereof “Cure Expiration Date”), Holdings shall have the right to issue common Qualified Equity Interests or other Equity Interests (provided such other Equity Interests are reasonably satisfactory to the Administrative Agent) for cash or otherwise receive cash contributions to the capital of Holdings as cash common equity (or otherwise in a form reasonably acceptable to the Administrative Agent) or other Qualified Equity Interests (which Holdings shall contribute to the Borrower as cash common Equity Interests or other Equity Interests (provided such other Equity Interests are reasonably satisfactory to the Administrative Agentequity) (collectively, the “Cure Right”), and upon the receipt by the Borrower of the Net Proceeds of such issuance that are not otherwise applied (the “Cure Amount”) pursuant to the exercise by the Borrower Holdings of such Cure Right such the Financial Performance Covenant shall be recalculated giving effect to the following pro forma adjustment:
(ai) Consolidated EBITDA shall be increased with respect to such applicable fiscal quarter and any four fiscal quarter period that contains such fiscal quarter, solely for the purpose of measuring the Financial Performance Covenant and not for any other purpose under this Agreement, by an amount equal to the Cure Amount;; and
(bii) if, after giving effect to the foregoing pro forma adjustment (without giving effect to any repayment of any Indebtedness with any portion of the Cure Amount or any portion of the Cure Amount on the balance sheet of Holdings, the Borrower and its the Restricted Subsidiaries (in each case, with respect to such fiscal quarter only but with giving pro forma effect to any portion of the Cure Amount applied to any repayment of any Indebtednessonly), the Borrower and its the Restricted Subsidiaries shall then be in compliance with the requirements of the Financial Performance CovenantsCovenant, Holdings, the Borrower and its the Restricted Subsidiaries shall be deemed to have satisfied the requirements of the Financial Performance Covenant as of the relevant date of determination with the same effect as though there had been no failure to comply therewith at such date, and the applicable breach or default of the Financial Performance Covenant that had occurred shall be deemed cured for the purposes of this Agreement; andprovided that the Borrower shall have notified the Administrative Agent of the exercise of such Cure Right within five Business Days of the issuance of the relevant Qualified Equity Interests for cash or the receipt of the cash contributions by Holdings.
(cb) Notwithstanding anything herein to the contrary, (i) in each four consecutive fiscal quarter period of the Borrower there shall be at least two fiscal quarters in which the Cure Right is not exercised, (ii) during the term of this Agreement, the Cure Right shall not be exercised more than five times, times and (iii) for purposes of this Section 7.02, the Cure Amount shall be no greater than the amount required for purposes of complying with the Financial Performance Covenant and any amounts in excess thereof shall not be deemed to be a Cure Amount and (iv) the Lenders shall not be required to make a Loan or issue, amend, renew or extend any Letter of Credit unless and until the Borrower has received the Cure Amount required to cause the Borrower and the Restricted Subsidiaries to be in compliance with the Financial Performance CovenantsAmount. Notwithstanding any other provision in this Agreement to the contrary, the Cure Amount received pursuant to any exercise of the Cure Right shall be disregarded for all other purposes, such as for purposes of determining the Available AmountApplicable Rate, the Available Equity Amount, for purposes of determining Pro Forma Compliance in connection with any transaction and for purposes of determining any financial ratio-based conditions condition or tests, pricing or any available basket under Article VI of this Agreement.
(c) Notwithstanding anything to the contrary in this Agreement or the other Loan Documents, upon the occurrence and continuation of an Event of Default under Section 7.01(s), only the Required Revolving Lenders may exercise rights and remedies in respect of such Event of Default, and the Required Revolving Lenders may, upon written notice to the Borrower, either (x) terminate the Revolving Commitments and/or (y) take the actions specified in Section 7.01 in respect of the Revolving Commitments, the Revolving Loans, Letters of Credit and Swingline Loans; provided that neither the Administrative Agent, any Revolving Lender or other Secured Party may exercise any right of foreclosure or take possession of the Collateral or exercise any other remedy hereunder solely on the basis such an Event of Default occurring at any time prior to the exercise of the Cure Right (except to the extent that the Borrower has confirmed in writing that it does not intend to exercise the Cure Right; provided further that the Borrower shall not be permitted to request any extension of credit during such period unless and until the Cure Amount is actually received.
Appears in 1 contract
Right to Cure. (a) Notwithstanding anything to the contrary contained in Section 7.01, in the event that Holdings and the Borrower and its Restricted Subsidiaries fail to comply with the requirements of the Financial Performance Covenant as of the last day of any fiscal quarter of the BorrowerHoldings, at any time after the beginning of such fiscal quarter until the expiration of the 10th fifteenth (15th) Business Day following the date on which the financial statements with respect to such fiscal quarter (or the fiscal year ended on the last day of such fiscal quarter) are required to be delivered pursuant to Section 5.01(a) or Section 5.01(b(b), the Borrower as applicable, Holdings or any Parent Entity thereof shall have the right to issue common Qualified Equity Interests or other Equity Interests (provided such other Equity Interests are reasonably satisfactory to the Administrative Agent) for cash or otherwise receive cash contributions to the capital of Holdings or any Parent Entity as cash common equity or other Qualified Equity Interests (which Holdings or such Parent Entity shall contribute through its Subsidiaries of which the Borrower is a Subsidiary to the Borrower as cash common Equity Interests or other Equity Interests (provided such other Equity Interests are reasonably satisfactory to the Administrative Agentequity) (collectively, the “Cure Right”), and upon the receipt by the Borrower Holdings of the Net Proceeds of such issuance that are not otherwise applied Not Otherwise Applied (the “Cure Amount”) pursuant to the exercise by the Borrower Holdings of such Cure Right such the Financial Performance Covenant shall be recalculated giving effect to the following pro forma adjustment:
(ai) Consolidated EBITDA shall be increased with respect to such applicable fiscal quarter and any four fiscal quarter period that contains such fiscal quarter, solely for the purpose of measuring the Financial Performance Covenant and not for any other purpose under this Agreement, by an amount equal to the Cure Amount;; and
(bii) if, after giving effect to the foregoing pro forma adjustment (without giving effect to any portion of the Cure Amount on the balance sheet of Holdings (or Parent) and the Borrower and its Restricted Subsidiaries with respect to such fiscal quarter only but with giving pro forma effect to any portion of the Cure Amount actually applied to any repayment of any Indebtedness), the Borrower and its the Restricted Subsidiaries shall then be in compliance with the requirements of the Financial Performance CovenantsCovenant, Holdings and the Borrower and its Restricted Subsidiaries shall be deemed to have satisfied the requirements of the Financial Performance Covenant as of the relevant date of determination with the same effect as though there had been no failure to comply therewith at such date, and the applicable breach or default of the Financial Performance Covenant that had occurred shall be deemed cured for the purposes of this Agreement; and.
(cb) Notwithstanding anything herein to the contrary, (i) in each four consecutive fiscal quarter period of the Borrower Holdings there shall be at least two fiscal quarters in which the Cure Right is not exercised, (ii) during the term of this Agreement, the Cure Right shall not be exercised more than five times, times and (iii) the Cure Amount shall be no greater than the amount required for purposes of complying with the Financial Performance Covenant Covenants and any amounts in excess thereof shall not be deemed to be a Cure Amount and (iv) the Lenders shall not be required to make a Loan or issue, amend, renew or extend any Letter of Credit unless and until the Borrower has received the Cure Amount required to cause the Borrower and the Restricted Subsidiaries to be in compliance with the Financial Performance CovenantsAmount. Notwithstanding any other provision in this Agreement to the contrary, the Cure Amount received pursuant to any exercise of the Cure Right shall be disregarded for purposes of determining the Available Amount, the Available Equity Amount, any financial ratio-based conditions or tests, pricing or any available basket under Article VI of this Agreement.
(c) Notwithstanding anything herein to the contrary, in the event that Holdings and the Restricted Subsidiaries fail to comply with the requirements of the Financial Performance Covenant as of the last day of any fiscal quarter of Holdings, from (x) the earlier of (i) the date on which a Compliance Certificate with respect to such fiscal quarter (or the fiscal year ended on the last day of such fiscal quarter) is delivered in accordance with Section 5.01(d) and (ii) the date on which the financial statements with respect to such fiscal quarter (or the fiscal year ended on the last day of such fiscal quarter) are required to be delivered pursuant to Section 5.01(a) or (b), as applicable, until (y) the receipt by Holdings of the applicable Cure Amount pursuant to Section 7.02(a) or the waiver of all Events of Default, no Borrowing of Revolving Loans shall be permitted and no Letters of Credit shall be issued.
Appears in 1 contract
Samples: Credit Agreement (EverCommerce Inc.)
Right to Cure. (a) Notwithstanding anything to the contrary contained in Section 7.01, in the event that the Borrower and its the Restricted Subsidiaries fail to comply with the requirements of the either Financial Performance Covenant as of the last day of any fiscal quarter of the Borrower, at any time after the beginning of such fiscal quarter until the expiration of the 10th Business Day following subsequent to the earlier of (i) the date on which a Compliance Certificate with respect to such fiscal quarter (or the fiscal year ended on the last day of such fiscal quarter) is delivered in accordance with Section 5.01(d) and (ii) the date on which the financial statements with respect to such fiscal quarter (or the fiscal year ended on the last day of such fiscal quarter) are required to be delivered pursuant to Section 5.01(a) or Section 5.01(b(b), the Borrower or any Parent Entity thereof as applicable, Holdings shall have the right to issue common Qualified Equity Interests or other Equity Interests (provided such other Equity Interests are reasonably satisfactory to the Administrative Agent) for cash or otherwise receive cash contributions to the capital of Holdings as cash common equity or other Qualified Equity Interests (which Holdings shall contribute through its Subsidiaries of which the Borrower is a Subsidiary to the Borrower as cash common Equity Interests or other Equity Interests (provided such other Equity Interests are reasonably satisfactory to the Administrative Agentequity) (collectively, the “Cure Right”), and upon the receipt by the Borrower of the Net Proceeds of such issuance that are not otherwise applied Not Otherwise Applied (the “Cure Amount”) pursuant to the exercise by the Borrower Holdings of such Cure Right such Financial Performance Covenant shall be recalculated giving effect to the following pro forma adjustment:
(ai) Consolidated EBITDA shall be increased with respect to such applicable fiscal quarter and any four fiscal quarter period that contains such fiscal quarter, solely for the purpose of measuring the Financial Performance Covenant and not for any other purpose under this Agreement, by an amount equal to the Cure Amount;; and
(bii) if, after giving effect to the foregoing pro forma adjustment (without giving effect to any portion of the Cure Amount or any portion of the Cure Amount on the balance sheet of the Borrower and its Restricted Subsidiaries Subsidiaries, in each case, with respect to such fiscal quarter only but with giving pro forma effect to any portion of the Cure Amount actually applied to any repayment of any Indebtedness), the Borrower Holdings and its Restricted Subsidiaries shall then be in compliance with the requirements of the Financial Performance CovenantsCovenant, the Borrower and its Restricted Subsidiaries shall be deemed to have satisfied the requirements of the Financial Performance Covenant as of the relevant date of determination with the same effect as though there had been no failure to comply therewith at such date, and the applicable breach or default of the Financial Performance Covenant that had occurred shall be deemed cured for the purposes of this Agreement; andprovided that the Borrower shall have notified the Administrative Agent of the exercise of such Cure Right within five (5) Business Days of the issuance of the relevant Qualified Equity Interests for cash or the receipt of the cash contributions by Holdings.
(cb) Notwithstanding anything herein to the contrary, (i) in each four consecutive fiscal quarter period of the Borrower there shall be at least two one fiscal quarters quarter in which the Cure Right is not exercised, (ii) during the term of this Agreement, the Cure Right shall not be exercised more than five times, times and (iii) for purposes of this Section 7.02, the Cure Amount shall be no greater than the amount required for purposes of complying with the Financial Performance Covenant Covenants and any amounts in excess thereof shall not be deemed to be a Cure Amount and (iv) the Lenders shall not be required to make a Loan or issue, amend, renew or extend any Letter of Credit unless and until the Borrower has received the Cure Amount required to cause the Borrower and the Restricted Subsidiaries to be in compliance with the Financial Performance CovenantsAmount. Notwithstanding any other provision in this Agreement to the contrary, the Cure Amount received pursuant to any exercise of the Cure Right shall be disregarded for purposes of determining the Available Amount, the Available Equity Amount, any financial ratio-based conditions or tests, pricing or any available basket under Article VI of this AgreementAgreement and there shall not have been a breach of any covenant under Article VI of this Agreement by reason of having no longer included such Cure Amount in any basket during the relevant period.
Appears in 1 contract
Right to Cure. (a) Notwithstanding anything to the contrary contained in Section 7.01, in the event that the Borrower and its Restricted Subsidiaries fail Holdings fails to comply with the requirements of the Financial Performance Maintenance Covenant as of the last day end of any relevant fiscal quarter of the Borrowerquarter, at any time after the beginning end of such fiscal quarter until and on or prior to the expiration of the 10th tenth Business Day following Days after the date on which the financial statements with respect to such fiscal quarter (or the fiscal year ended on the last day of such fiscal quarter) are required to be delivered pursuant to Section 5.01(a5.04(a) or Section 5.01(b5.04(b), as applicable (the Borrower or any Parent Entity thereof “Cure Period”), Holdings shall have the right to issue common Equity Interests or other Equity Interests (provided such other Equity Interests are reasonably satisfactory to the Administrative Agent) for cash or otherwise receive cash contributions to the capital of the Borrower as cash common Equity Interests or other Equity Interests (provided such other Equity Interests are reasonably satisfactory to the Administrative Agent) (collectively, the “Cure Right”) to receive cash capital contributions to the common equity of Holdings or issue Qualified Equity Interests for cash (the proceeds of which Holdings shall immediately contribute in cash to the Borrower as common equity or in exchange for Qualified Equity Interests of the Borrower), and upon the exercise of such right and such receipt by the Borrower of such cash proceeds, Holdings may, at the Net Proceeds election of such issuance that are not otherwise applied the Borrower, apply the aggregate amount (the “Cure Amount”) pursuant to the exercise of such cash proceeds received by the Borrower of such Cure Right such Financial Performance Covenant shall be recalculated giving effect solely to the following pro forma adjustment:
(a) increase Consolidated EBITDA shall be increased with respect to such applicable fiscal quarter and any four fiscal quarter period applicable periods that contains include such fiscal quarter, solely for ; provided that such cash proceeds (i) are actually received by the purpose Borrower as cash common equity (including through capital contribution of measuring the Financial Performance Covenant and not for any other purpose under this Agreement, by an amount equal such cash proceeds to the Borrower) during the applicable Cure Amount;
Period and (bii) ifare Not Otherwise Applied (each such receipt and application of such cash proceeds as provided herein, a “Specified Equity Contribution”). If, after giving effect to the foregoing pro forma adjustment (without giving effect to any portion of increase in Consolidated EBITDA by the Cure Amount on the balance sheet as a result of the Borrower and its Restricted Subsidiaries with respect to such fiscal quarter only but with giving pro forma effect to any portion of the Cure Amount applied to any repayment of any Indebtedness)a Specified Equity Contribution, the Borrower and its Restricted Subsidiaries shall then be in compliance with the requirements of the Financial Performance Covenants, the Borrower and its Restricted Subsidiaries Maintenance Covenant shall be deemed to have satisfied satisfied, then the requirements of the Financial Performance Maintenance Covenant shall be deemed satisfied as of the end of the relevant date of determination fiscal quarter with the same effect as though there had been no failure to comply therewith at such date, and the applicable breach or default of the Financial Performance Maintenance Covenant that had occurred (and any resultant Event of Default or potential Event of Default) shall be deemed cured retroactively not to have occurred for the purposes of this Agreement; and.
(cb) Notwithstanding anything herein to the contrary, (i) in each period of four consecutive fiscal quarter period of the Borrower quarters, there shall be at least two fiscal quarters in which the Cure Right no Specified Equity Contribution is not exercisedmade, (ii) no more than five Specified Equity Contributions shall be made in the aggregate during the term of this Agreement, the Cure Right shall not be exercised more than five times, (iii) the Cure Amount amount of any Specified Equity Contribution shall be no greater more than the amount required for purposes of complying with the Financial Performance Covenant and any amounts in excess thereof shall not be deemed to be a Cure Amount and (iv) the Lenders shall not be required to make a Loan or issue, amend, renew or extend any Letter of Credit unless and until the Borrower has received the Cure Amount required to cause the Borrower and the Restricted Subsidiaries to be in compliance, on a Pro Forma Basis, with the Financial Maintenance Covenant for any applicable period and (iv) there shall be no pro forma reduction in Indebtedness with the proceeds of any Specified Equity Contribution for determining compliance with the Financial Performance Covenants. Maintenance Covenant for the fiscal quarter in which the Specified Equity Contribution is made and the applicable subsequent periods which include such fiscal quarter.
(c) Notwithstanding any other provision in this Agreement to the contrary, Section 7.03(a) may not be relied on for, and the Cure Amount received pursuant to any exercise Specified Equity Contribution and the use of the Cure Right proceeds thereof shall be disregarded for for, all purposes of this Agreement (except as expressly set forth in Section 7.03(a)), including for determining the Available Amount, the Available Equity Amount, any financial ratio-based terms (including pricing) or conditions or tests, pricing or and any increase to any available basket under Article VI this Agreement or calculating compliance with any of this Agreementthe incurrence tests hereunder.
Appears in 1 contract
Samples: Credit Agreement (Belmond Ltd.)
Right to Cure. (a) Notwithstanding anything to the contrary contained in Section 7.01, in the event that Parent, Holdings, the Borrower and its the Restricted Subsidiaries fail to comply with the requirements of the Financial Performance Covenant as of the last day of any fiscal quarter of the BorrowerParent, at any time after the beginning of such fiscal quarter until the expiration of the 10th fifteenth Business Day following subsequent to the date on which the financial statements a Compliance Certificate with respect to such fiscal quarter (or the fiscal year ended on the last day of such fiscal quarter) are is required to be delivered pursuant to in accordance with Section 5.01(a5.01(c) or Section 5.01(bthe “Cure Right Expiration Date”), the Borrower or any Parent Entity thereof shall have the right to issue common Qualified Equity Interests or other Equity Interests (provided such other Equity Interests are reasonably satisfactory to the Administrative Agent) for cash or otherwise receive cash contributions to the capital of Parent as cash common equity or other Qualified Equity Interests (which Parent shall contribute to the Borrower as cash common Equity Interests or other Equity Interests (provided such other Equity Interests are reasonably satisfactory to the Administrative Agentequity) (collectively, the “Cure Right”), and upon the receipt by the Borrower of the Net Proceeds of such issuance that are not otherwise applied (the “Cure Amount”) pursuant to the exercise by the Borrower Parent of such Cure Right such the applicable Financial Performance Covenant shall be recalculated giving effect to the following pro forma adjustment:
(ai) Consolidated EBITDA shall be increased with respect to such applicable fiscal quarter and any four (4) fiscal quarter period that contains such fiscal quarter, solely for the purpose of measuring the Financial Performance Covenant and not for any other purpose under this Agreement, by an amount equal to the Cure Amount;; and
(bii) if, after giving effect to the foregoing pro forma adjustment (without giving effect to any repayment of any Indebtedness with any portion of the Cure Amount or any portion of the Cure Amount on the balance sheet of Parent, Holdings, the Borrower and its the Restricted Subsidiaries Subsidiaries, in each case, with respect to such fiscal quarter only but with giving pro forma effect to any portion of the Cure Amount applied to any repayment of any Indebtednessonly), Parent, Holdings, the Borrower and its the Restricted Subsidiaries shall then be in compliance with the requirements of the Financial Performance CovenantsCovenant, Parent, Holdings, the Borrower and its the Restricted Subsidiaries shall be deemed to have satisfied the requirements of the Financial Performance Covenant as of the relevant date of determination with the same effect as though there had been no failure to comply therewith at such date, and the applicable breach or default of the Financial Performance Covenant that had occurred shall be deemed cured for the purposes of this Agreement; andprovided that the Borrower shall have notified the Administrative Agent of the exercise of such Cure Right within five (5) Business Days of the issuance of the relevant Qualified Equity Interests for cash or the receipt of the cash contributions by Parent.
(cb) Notwithstanding anything herein to the contrary, (i) in each four (4) consecutive fiscal quarter period of the Borrower Parent there shall be at least two (2) fiscal quarters in which the Cure Right is not exercised, (ii) during since the term of this AgreementRestatement Date, the Cure Right shall not be exercised more than five times, times and (iii) for purposes of this Section 7.02, the Cure Amount shall be no greater than the amount required for purposes of complying with the Financial Performance Covenant and any amounts in excess thereof shall not be deemed to be a Cure Amount and (iv) the Lenders shall not be required to make a Loan or issue, amend, renew or extend any Letter of Credit unless and until the Borrower has received the Cure Amount required to cause the Borrower and the Restricted Subsidiaries to be in compliance with the Financial Performance CovenantsAmount. Notwithstanding any other provision in this Agreement to the contrary, the Cure Amount received pursuant to any exercise of the Cure Right shall be disregarded for purposes of determining the Available Amount, the Available Equity Amount, any financial ratio-based conditions or tests, pricing or any available basket under Article VI of this AgreementAgreement or the amount of any commitment fee pursuant to Section 2.12(a), the amount of any interest pursuant to Section 2.13 or any other financial-ratio based conditions other than compliance with the Financial Performance Covenant and there shall be no pro forma reduction in indebtedness with the proceeds of any Cure Amount for purposes of determining compliance with the Financial Performance Covenant. For the avoidance of doubt, no Lender shall be required to make any extension of credit and no Issuing Bank shall be required to issue, amend, extend the expiry of, or increase the amount of, any Letters of Credit during the ten (10) Business Day period referred to in clause (a) above unless the Borrower has received the proceeds of such Cure Amount.
(c) Notwithstanding anything herein to the contrary, in the event that Parent, Holdings, the Borrower and the Restricted Subsidiaries fail to comply with the requirements of the Financial Performance Covenant as of the last day of any fiscal quarter of Parent, Holdings, the Borrower shall have the right to deliver, at any time prior to the Cure Right Expiration Date, written notice to the Administrative Agent of its intent to exercise the Cure Right in respect of such fiscal quarter and, upon receipt by the Administrative Agent of such written notice, neither the Administrative Agent nor the Lenders shall be permitted to accelerate Loans held by them, terminate the Commitments, exercise remedies against the Collateral or otherwise exercise any other remedies hereunder on the basis of a failure to comply with the requirements of the Financial Performance Covenant, unless such failure is not cured pursuant to the exercise of the Cure Right on or prior to the Cure Right Expiration Date (or such earlier date as the Borrower confirms in writing that the Cure Amount will not be received).
Appears in 1 contract
Right to Cure. Notwithstanding anything to the contrary contained in Section 7.01, in the event that the Borrower and its Restricted Subsidiaries fail to comply with the requirements of the Financial Performance Covenant as of the last day of any fiscal quarter of the Borrower, If Tenant shall at any time default in the performance of any obligation under this Lease after the beginning of such fiscal quarter until the written notice and expiration of any applicable cure period hereunder, Landlord shall have the 10th Business Day following right, but shall not be obligated to perform such obligation, notwithstanding the date on which the financial statements fact that no specific provision for such substituted performance by Landlord is made in this Lease with respect to such fiscal quarter (or default. If Landlord shall at any time default in the fiscal year ended on the last day performance of such fiscal quarter) are required to be delivered pursuant to Section 5.01(a) or Section 5.01(b)any obligation under this Lease, the Borrower or any Parent Entity thereof Tenant shall have the right (but not the obligation), to issue common Equity Interests perform such obligation provided, that, (i) such obligation of -------- ---- Landlord is one that is reasonably capable of being performed, remedied or other Equity Interests cured, (provided such other Equity Interests are reasonably satisfactory to the Administrative Agentii) for cash or otherwise receive cash contributions to the capital Tenant has notified Landlord in writing of the Borrower as cash common Equity Interests or other Equity Interests (provided such other Equity Interests are reasonably satisfactory nature of Landlord's default and Tenant's intention to the Administrative Agent) (collectively, the “Cure Right”)cure, and upon the (iii) within ten (10) business days after Landlord's receipt by the Borrower of the Net Proceeds of such issuance that are not otherwise applied (the “Cure Amount”) Tenant's notice pursuant to the exercise foregoing clause (ii), Landlord has failed to provide evidence demonstrating that Landlord has or is taking all reasonable steps and actions required to satisfy its obligation(s) in question. In performing such obligation, Landlord or Tenant, as the case may be, may make any payment of money or perform any other act. All sums so paid (together with interest at the rate of 4% per annum in excess of the then prime commercial rate of interest being charged by the Borrower Fleet Bank, N.
A. in Boston, Massachusetts) and all reasonable and necessary incidental costs and expenses in connection with the performance of any such Cure Right such Financial Performance Covenant act by Landlord or Tenant, shall be recalculated giving effect to payable by the following pro forma adjustment:
(a) Consolidated EBITDA shall be increased with respect to such applicable fiscal quarter defaulting party immediately on demand, and any four fiscal quarter period that contains such fiscal quarterin the case of amounts so expended by Landlord, solely for the purpose of measuring the Financial Performance Covenant and not for any other purpose under this Agreement, by an amount equal to the Cure Amount;
(b) if, after giving effect to the foregoing pro forma adjustment (without giving effect to any portion of the Cure Amount on the balance sheet of the Borrower and its Restricted Subsidiaries with respect to such fiscal quarter only but with giving pro forma effect to any portion of the Cure Amount applied to any repayment of any Indebtedness), the Borrower and its Restricted Subsidiaries shall then be in compliance with the requirements of the Financial Performance Covenants, the Borrower and its Restricted Subsidiaries shall be deemed to have satisfied the requirements of the Financial Performance Covenant as of the relevant date of determination with the same effect as though there had been no failure to comply therewith at such datebe additional rent under this Lease, and in the applicable breach or default case of amounts so expended by Tenant, may be offset against the Financial Performance Covenant that had occurred shall be deemed cured for next scheduled installment(s) of Annual Rent hereunder. Either party may exercise the purposes of this Agreement; and
(c) Notwithstanding anything herein to the contrary, (i) in each four consecutive fiscal quarter period of the Borrower there shall be at least two fiscal quarters in which the Cure Right is not exercised, (ii) during the term of this Agreement, the Cure Right shall not be exercised more than five times, (iii) the Cure Amount shall be no greater than the amount required for purposes of complying with the Financial Performance Covenant and any amounts in excess thereof shall not be deemed to be a Cure Amount and (iv) the Lenders shall not be required to make a Loan or issue, amend, renew or extend any Letter of Credit unless and until the Borrower has received the Cure Amount required to cause the Borrower and the Restricted Subsidiaries to be in compliance with the Financial Performance Covenants. Notwithstanding foregoing rights without waiving any other provision in of its rights or releasing the other from any of its obligations under this Agreement to the contrary, the Cure Amount received pursuant to any exercise of the Cure Right shall be disregarded for purposes of determining the Available Amount, the Available Equity Amount, any financial ratio-based conditions or tests, pricing or any available basket under Article VI of this AgreementLease.
Appears in 1 contract
Right to Cure. Notwithstanding anything to the contrary contained in Section 7.01this Sublease or the Prime Lease, in the event that Sublandlord defaults in the Borrower performance or observance of any of Sublandlord’s obligations under the Prime Lease (to the extent not the obligation of Subtenant hereunder or caused by Subtenant’s default hereunder) or this Sublease, or fails to perform Sublandlord’s stated obligations under Section 9(b) of this Sublease and such default or failure, in Subtenant’s reasonable opinion, materially impairs the conduct by Subtenant of its Restricted Subsidiaries fail business operations in the Demised Premises, then Subtenant shall give Sublandlord notice specifying in what manner Sublandlord has defaulted, and if such default shall not be cured by Sublandlord within a reasonable time, but in no event longer than thirty (30) days thereafter (except that if such default cannot be cured within said period, this period shall be extended for an additional reasonable time, provided that Sublandlord commences to cure such default within such period and proceeds diligently thereafter to effect the cure as quickly as reasonably practicable), then Subtenant shall be entitled, at Subtenant’s option, to cure such default and promptly collect from Sublandlord the reasonable, out-of-pocket expenses actually incurred by Subtenant in curing such default. Subtenant shall not be required, however, to wait the entire cure period described herein if earlier action is required to comply with the requirements Prime Lease or with any applicable governmental law, regulation or order. For the avoidance of doubt, the Financial Performance Covenant parties acknowledge and agree that the foregoing self-help remedies shall not be construed as exclusive remedies of the last day of any fiscal quarter of the Borrower, at any time after the beginning Subtenant and that an- exercise of such fiscal quarter until the expiration of the 10th Business Day following the date on which the financial statements with respect to such fiscal quarter (or the fiscal year ended on the last day of such fiscal quarter) are required to be delivered pursuant to Section 5.01(a) or Section 5.01(b), the Borrower or any Parent Entity thereof shall have the right to issue common Equity Interests or other Equity Interests (provided such other Equity Interests are reasonably satisfactory to the Administrative Agent) for cash or otherwise receive cash contributions to the capital of the Borrower as cash common Equity Interests or other Equity Interests (provided such other Equity Interests are reasonably satisfactory to the Administrative Agent) (collectively, the “Cure Right”), and upon the receipt by the Borrower of the Net Proceeds of such issuance that are not otherwise applied (the “Cure Amount”) remedies pursuant to the exercise by the Borrower of such Cure Right such Financial Performance Covenant shall be recalculated giving effect to the following pro forma adjustment:
(a) Consolidated EBITDA shall be increased with respect to such applicable fiscal quarter and any four fiscal quarter period that contains such fiscal quarter, solely for the purpose of measuring the Financial Performance Covenant and not for any other purpose under this Agreement, by an amount equal to the Cure Amount;
(b) if, after giving effect to the foregoing pro forma adjustment (without giving effect to any portion of the Cure Amount on the balance sheet of the Borrower and its Restricted Subsidiaries with respect to such fiscal quarter only but with giving pro forma effect to any portion of the Cure Amount applied to any repayment of any Indebtedness), the Borrower and its Restricted Subsidiaries shall then be in compliance with the requirements of the Financial Performance Covenants, the Borrower and its Restricted Subsidiaries shall be deemed to have satisfied the requirements of the Financial Performance Covenant as of the relevant date of determination with the same effect as though there had been no failure to comply therewith at such date, and the applicable breach or default of the Financial Performance Covenant that had occurred shall be deemed cured for the purposes of this Agreement; and
(c) Notwithstanding anything terms set forth herein to the contrary, (i) in each four consecutive fiscal quarter period of the Borrower there shall be at least two fiscal quarters in which the Cure Right is not exercised, (ii) during the term of this Agreement, the Cure Right shall not be exercised more than five times, (iii) the Cure Amount shall be no greater than the amount required for purposes of complying with the Financial Performance Covenant and any amounts in excess thereof shall not be deemed to be constitute a Cure Amount and (iv) the Lenders shall not be required to make a Loan or issue, amend, renew or extend any Letter waiver of Credit unless and until the Borrower has received the Cure Amount required to cause the Borrower and the Restricted Subsidiaries to be in compliance with the Financial Performance Covenants. Notwithstanding any other provision in remedies available to Subtenant under this Agreement to the contrary, the Cure Amount received pursuant to any exercise of the Cure Right shall be disregarded for purposes of determining the Available Amount, the Available Equity Amount, any financial ratio-based conditions Sublease or tests, pricing or any available basket under Article VI of this Agreementapplicable law.
Appears in 1 contract
Right to Cure. Notwithstanding anything to the contrary contained in Section 7.01Sections 9.1 or 9.2, in the event that the Borrower and its Restricted Subsidiaries fail fails to comply with the requirements of the Financial Performance Covenant Covenants as of the last day of any fiscal quarter of the Borrower, at any time after the beginning of such fiscal quarter until the expiration of the 10th Business Day following the date on which the financial statements with respect to such fiscal quarter (or the fiscal year ended on the last day of such fiscal quarter) are required to be delivered pursuant to Section 5.01(a6.1(b) or Section 5.01(b(“Cure Period”), the Borrower or any Parent Entity thereof other Person that is a direct or indirect parent of Borrower shall have the right to issue common Equity Interests or other Equity Interests (provided such other Equity Interests are reasonably satisfactory to the Administrative Agent) for cash or otherwise receive cash contributions to the capital of the Borrower as cash common Equity Interests or other Equity Interests (provided such other Equity Interests are reasonably satisfactory to the Administrative Agent) (collectively, the “Cure Right”), and upon the receipt by the Borrower of the Net Cash Proceeds of 42297167v.11 such issuance that are not otherwise applied (the “Cure Amount”) ), pursuant to the exercise by the Borrower of such Cure Right such Financial Performance Covenant Covenants shall be recalculated giving effect to the following pro forma adjustment:
(a) Consolidated EBITDA (after giving effect to any annualization thereof) shall be increased with respect to such applicable fiscal quarter and any four fiscal quarter period Test Period that contains such fiscal quarter, solely for the purpose of measuring the Financial Performance Covenant Covenants and not for any other purpose under this Agreement, by an amount equal to the Cure Amount;
(b) if, after giving effect to the foregoing pro forma adjustment (without giving effect to any portion of the Cure Amount on the balance sheet of the adjustment, Borrower and its Restricted Subsidiaries with respect to such fiscal quarter only but with giving pro forma effect to any portion of the Cure Amount applied to any repayment of any Indebtedness), the Borrower and its Restricted Subsidiaries shall then be in compliance with the requirements of the Financial Performance Covenants, the Borrower and its Restricted Subsidiaries shall be deemed to have satisfied the requirements of the Financial Performance Covenant Covenants as of the relevant date of determination with the same effect as though there had been no failure to comply therewith at such date, and the applicable breach or default of the Financial Performance Covenant Covenants that had occurred shall be deemed cured for the purposes of this Agreement; and;
(c) Notwithstanding notwithstanding anything herein to the contrary, (i) in each four (4) consecutive fiscal quarter period of the Borrower there shall be at least two (2) fiscal quarters in which the Cure Right is not exercised, (ii) the Cure Right may not be exercised in consecutive fiscal quarters, (iii) during the term of this Agreement, the Cure Right shall not be exercised more than five four (4) times, (iiiiv) the Cure Amount shall be no greater than the amount required for purposes of complying with the Financial Performance Covenant Covenants, and any amounts in excess thereof shall not be deemed to be a Cure Amount (except that not more than one (1) time during the term of this Agreement, the Cure Amount may be made in an amount up to 120% of the amount required for purposes of complying with the Financial Covenants), (v) there shall be no pro forma reduction in Debt with the proceeds of any Cure Amount and (ivvi) if increasing EBITDA, the Lenders Cure Amount shall be included in the calculation only after calculating EBITDA on an annualized basis without giving effect to such increase (i.e., the Cure Amount shall not be required to make a Loan or issue, amend, renew or extend any Letter of Credit unless and until the Borrower has received the Cure Amount required to cause the Borrower and the Restricted Subsidiaries to be in compliance with the Financial Performance Covenantsannualized). Notwithstanding any other provision in this Agreement to the contrary, the Cure Amount received pursuant to any exercise of the Cure Right shall be disregarded for purposes of determining the Available Amount, the Available Equity Amountsatisfaction of any Default or Event of Default condition, any financial ratio-based conditions or tests, pricing or any available basket under Article VI 7 of this Agreement; and
(d) to the extent that the proceeds of the Cure Amount are used to repay Debt, such Debt shall not be deemed to have been repaid for purposes of calculating any Financial Covenant for the Test Period ending on (and including) the last day of the fiscal reporting period for which Borrower is requesting to cure a Financial Covenant Event of Default. Unless (A) the Borrower or any other Loan Party has stated in writing that it does not intend to exercise the Cure Right or (B) the Event of Default is precluded from being cured pursuant to this Section 9.4 because of clause (c) above, neither the Administrative Agent nor any Lender shall exercise any remedy under the Loan Documents (including application of the Default Interest Rate) on the basis of an Event of Default caused solely by the failure of the Loan Parties to comply with Article 8 until the end of the Cure Period. During any Cure Period (unless and until the Event of Default is cured pursuant to this Section 9.4), the Borrower shall not request, and the Lenders shall not be required to make and the L/C Issuer shall not be required to issue, renew or extend, as applicable, (i) any Loans or any Letters of Credit or (ii) any conversions from Base Rate Loans into Term SOFR Loans or continuations of Term SOFR Loans (which shall automatically convert into Base Rate Loans at the end of the applicable Interest Period).
Appears in 1 contract
Samples: Credit Agreement (LandBridge Co LLC)
Right to Cure. (a) Notwithstanding anything to the contrary contained in Section 7.019.1, in the event that the Borrower and its Restricted Subsidiaries fail fails to comply with the requirements of the Financial Performance Covenant as of the last day of any fiscal quarter of the Borrowerthen-applicable covenant set forth in Section 8.22, at any time after the beginning of such fiscal quarter until the expiration of the 10th tenth Business Day following after the date on which the financial statements with respect to such the four fiscal quarter (or the fiscal year ended on the last day of period in which such fiscal quarter) covenant is being measured are required to be delivered pursuant to Section 5.01(a) or Section 5.01(b)8.5, the Borrower or any Parent Entity thereof Holdings shall have the right to issue common Equity Interests (including preferred equity or other Equity Interests (provided such other Equity Interests are on terms and conditions reasonably satisfactory acceptable to the Administrative Agent) for cash or otherwise receive cash contributions to the capital on account of the Borrower as cash common Equity Interests or other its existing Equity Interests (provided such other Equity Interests are reasonably satisfactory to the Administrative Agent) (collectively, the “Cure Right”) (and the proceeds (the “Cure Amount”) of such issuance or contribution, if issued by Holdings, shall then be contributed to the Borrower), and upon the receipt by the Borrower of the Net Proceeds of Cure Amount the covenant set forth in such issuance that are not otherwise applied (the “Cure Amount”) pursuant to the exercise by the Borrower of such Cure Right such Financial Performance Covenant Section 8.22 shall be recalculated recalculated, giving effect to the following a pro forma adjustment:
(a) Consolidated increase to EBITDA for such four fiscal quarter period in an amount equal to the Cure Amount but without giving effect to any prepayment of Loans using the Cure Amount during the period in which the Cure Amount is included in EBITDA; provided that such pro forma adjustment to EBITDA shall be increased given solely for the purpose of determining the existence of a Default or an Event of Default under the financial covenant set forth in Section 8.22 with respect to such applicable fiscal quarter and any four fiscal quarter period that contains includes the fiscal quarter for which such fiscal quarter, solely for the purpose of measuring the Financial Performance Covenant Cure Right was exercised and not for any other purpose under this Agreement, by an amount equal to the Cure Amount;any Loan Document during such period.
(b) ifIf, after giving effect to the foregoing pro forma adjustment (without giving effect to any portion exercise of the Cure Amount on Right and the balance sheet of the Borrower and its Restricted Subsidiaries with respect recalculations pursuant to such fiscal quarter only but with giving pro forma effect to any portion of the Cure Amount applied to any repayment of any Indebtedness)clause (a) above, the Borrower and its Restricted Subsidiaries shall then be in compliance with the requirements of the Financial Performance Covenantsfinancial covenant set forth in Section 8.22 during such four fiscal quarter period, the Borrower and its Restricted Subsidiaries shall be deemed to have satisfied the requirements of the Financial Performance Covenant such covenants as of the relevant date of determination with the same effect as though there had been no failure to comply therewith at such date, and the applicable breach Default or default Event of the Financial Performance Covenant Default under Section 9.1 that had occurred shall be deemed cured for cured; provided that, during the purposes term of this Agreement; and
Agreement (ci) Notwithstanding anything herein to the contraryCure Right shall be exercised no more than five (5) times, (iii) in each four consecutive fiscal quarter period of the Borrower period, there shall be at least two fiscal quarters in respect of which the no Cure Right is not exercised, (ii) during the term of this Agreement, the Cure Right shall not be exercised more than five times, (iii) with respect to any exercise of the Cure Right, the Cure Amount shall be no greater than the amount required for purposes of complying with the Financial Performance Covenant and any amounts in excess thereof shall not be deemed to be a Cure Amount and (iv) the Lenders shall not be required to make a Loan or issue, amend, renew or extend any Letter of Credit unless and until the Borrower has received the Cure Amount required to cause the Borrower and the Restricted Subsidiaries to be in compliance with the Financial Performance Covenants. Notwithstanding any financial covenant set forth in Section 8.22, (iv) other provision in this Agreement than for purposes of Section 7.1, no Event of Default under Section 8.22 shall be deemed to have occurred until after the contrary, aforementioned tenth Business Day occurs without exercise of the Cure Amount received pursuant Right and (v) the increase to any EBITDA represented by the exercise of the Cure Right shall be disregarded solely for purposes the purpose of determining curing the Available Amountfailure to comply with the financial covenant set forth in Section 8.22 and not for any other purpose, including the Available Equity Amount, calculation of any financial ratio-based conditions basket amount or tests, pricing or any available basket under Article VI of exception otherwise set forth in this AgreementAgreement during the period in which the Cure Amount is included in EBITDA.
Appears in 1 contract
Samples: Credit Agreement (Dave & Buster's Entertainment, Inc.)
Right to Cure. Notwithstanding anything to the contrary contained in Section 7.017.01 or 7.02, in the event that the Borrower and its Restricted Subsidiaries fail to comply with the requirements of the Financial Performance Covenant as of the last day of any fiscal quarter of the Borrower, at any time after the beginning of such fiscal quarter until the expiration of the 10th Business Day following the date on which the financial statements with respect to such fiscal quarter (or the fiscal year ended on the last day of such fiscal quarter) are required to be delivered pursuant to Section 5.01(a) or Section 5.01(b(b), the Borrower or any Parent Entity Person that is a direct or indirect parent of the Borrower thereof shall have the right right, but not any obligation, to issue common Equity Interests or other Equity Interests (provided such other Equity Interests are reasonably satisfactory to the Administrative Agent) for cash or otherwise receive cash contributions to the capital of the Borrower as cash common Equity Interests or other Equity Interests (provided such other Equity Interests are reasonably satisfactory to the Administrative Agent) (collectively, the “Cure Right”), and upon the receipt by the Borrower of the Net Proceeds net cash proceeds of such issuance that are not otherwise applied (the “Cure Amount”) pursuant to the exercise by the Borrower of such Cure Right such Financial Performance Covenant shall be recalculated giving effect to the following pro forma adjustment:
(a) Consolidated EBITDA Unrestricted cash and Cash Equivalents of the Borrower and its Restricted Subsidiaries shall be increased with respect to such applicable fiscal quarter and any four fiscal quarter period that contains such fiscal quarter, solely for the purpose of measuring the Financial Performance Covenant and not for any other purpose under this Agreement, by an amount equal to the Cure Amount;
(b) if, after giving effect to the foregoing pro forma adjustment (without giving effect to any portion of the Cure Amount on the balance sheet of the Borrower and its Restricted Subsidiaries with respect to such fiscal quarter only but with giving pro forma effect to any portion of the Cure Amount applied to any repayment of any Indebtedness)adjustment, the Borrower and its Restricted Subsidiaries shall then be in compliance with the requirements of the Financial Performance CovenantsCovenant, the Borrower and its Restricted Subsidiaries shall be deemed to have satisfied the requirements of the Financial Performance Covenant as of the relevant date of determination with the same effect as though there had been no failure to comply therewith at such date, and the applicable breach or default of the Financial Performance Covenant that had occurred shall be deemed cured for the purposes of this Agreement; and
(c) Notwithstanding notwithstanding anything herein to the contrary, (i) in each four consecutive fiscal quarter period of the Borrower there shall be at least two fiscal quarters in which the Cure Right is not exercised, (ii) during the term of this Agreement, the Cure Right shall not be exercised more than five times, (iii) the Cure Amount shall be no greater than the amount required for purposes of complying with the Financial Performance Covenant and any amounts in excess thereof shall not be deemed to be a Cure Amount and (iv) the Lenders shall not be required to make a Loan or issue, amend, renew or extend any Letter of Credit unless and until the Borrower has received the Cure Amount required to cause the Borrower and the Restricted Subsidiaries to be in compliance with the Financial Performance CovenantsCovenant. Notwithstanding any other provision in this Agreement to the contrary, the Cure Amount received pursuant to any exercise of the Cure Right shall be disregarded for purposes of determining the Available Amount, the Available Equity Amount, any financial ratio-based conditions or tests, pricing or any available basket under Article VI of this Agreement.
Appears in 1 contract
Right to Cure. (1) Notwithstanding anything to the contrary contained in Section 7.018.01 or Section 8.02, in but subject to Sections 8.04(2) and (3), for the event that the Borrower and its Restricted Subsidiaries fail to comply with the requirements purpose of determining whether an Event of Default under the Financial Performance Covenant as of the last day of any fiscal quarter of the Borrower, at any time after the beginning of such fiscal quarter until the expiration of the 10th Business Day following the date on which the financial statements with respect to such fiscal quarter (or the fiscal year ended on the last day of such fiscal quarter) are required to be delivered pursuant to Section 5.01(a) or Section 5.01(b)has occurred, the Borrower may on one or more occasions designate any Parent Entity thereof shall have portion of the right Net Proceeds from any Permitted Equity Issuance or of any contribution to issue the common Equity Interests equity capital of Holdings (or from any other contribution to capital or sale or issuance of any other Equity Interests (provided such other Equity Interests are on terms reasonably satisfactory to the Administrative Agent) for cash or otherwise receive cash contributions to with the capital proceeds of a Subordinated Shareholder Loan of Holdings, the Borrower as cash common Equity Interests or other a Subsidiary Guarantor that is promptly (but in any event within 10 Business Days) converted into Equity Interests (provided such other Equity Interests are reasonably satisfactory to the Administrative Agentthan Disqualified Stock) (collectively, the “Cure Right”), and upon the receipt by the Borrower of the Net Proceeds of such issuance that are not otherwise applied Holdings or a Parent Company (the “Cure Amount”) pursuant as an increase to the exercise by Consolidated EBITDA of the Borrower of such Cure Right such Financial Performance Covenant shall be recalculated giving effect to for the following pro forma adjustment:applicable fiscal quarter; provided that
(a) Consolidated EBITDA shall such amounts to be increased designated are actually received by Holdings (i) on or after the first Business Day of the applicable fiscal quarter and (ii) on or prior to the tenth (10th) Business Day after the date on which financial statements are required to be delivered with respect to such applicable fiscal quarter and any four fiscal quarter period that contains such fiscal quarter, solely for (the purpose of measuring the Financial Performance Covenant and not for any other purpose under this Agreement, by an amount equal to the “Cure Amount;Expiration Date”),
(b) if, after giving effect such amounts to be designated do not exceed the maximum aggregate amount necessary to cure any Event of Default under the Financial Covenant as of such date and
(c) the Borrower will have provided notice to the foregoing pro forma adjustment Administrative Agent on the date such amounts are designated as a “Cure Amount” (without giving effect it being understood that to the extent such notice is provided in advance of delivery of a Compliance Certificate for the applicable period, the amount of such Net Proceeds that is designated as the Cure Amount may be lower than specified in such notice to the extent that the amount necessary to cure any Event of Default under the Financial Covenant is less than the full amount of such originally designated amount). The Cure Amount used to calculate Consolidated EBITDA for one fiscal quarter will be used and included when calculating Consolidated EBITDA for each Test Period that includes such fiscal quarter. The parties hereby acknowledge that this Section 8.04(1) may not be relied on for purposes of calculating any financial ratios other than as applicable to the Financial Covenant (and may not be included for purposes of determining pricing, mandatory prepayments and the availability or amount permitted pursuant to any portion covenant under Article VII) and may not result in any adjustment to any amounts (including the amount of Indebtedness) or increase in cash with respect to the fiscal quarter with respect to which such Cure Amount was received other than the amount of the Consolidated EBITDA referred to in the immediately preceding sentence, except to the extent such proceeds are applied to prepay Indebtedness under the Facilities. Notwithstanding anything to the contrary contained in Section 8.01 and Section 8.02, (A) upon designation of the Cure Amount on the balance sheet of by the Borrower and its Restricted Subsidiaries with respect in an amount necessary to such fiscal quarter only but with giving pro forma effect to cure any portion Event of Default under the Cure Amount applied to any repayment of any Indebtedness)Financial Covenant, the Borrower and its Restricted Subsidiaries shall then be in compliance with the requirements of the Financial Performance Covenants, the Borrower and its Restricted Subsidiaries shall Covenant will be deemed to have satisfied the requirements of the Financial Performance Covenant and complied with as of the end of the relevant date of determination fiscal quarter with the same effect as though there had been no failure to comply therewith at such date, with the Financial Covenant and any Event of Default under the applicable breach or default Financial Covenant (and any other Default as a result thereof) will be deemed not to have occurred for purposes of the Loan Documents, (B) from and after the date that the Borrower delivers a written notices to the Administrative Agent that it intends to exercise its cure right under this Section 8.04 (a “Notice of Intent to Cure”) neither the Administrative Agent nor any Lender may exercise any rights or remedies under Section 8.02 (or under any other Loan Document) on the basis of any actual or purported Event of Default under the Financial Performance Covenant that had (and any other Default as a result thereof) until and unless the Cure Expiration Date has occurred without the Cure Amount having been designated and (C) no Lender or Issuing Bank shall be deemed cured for required to (but in its sole discretion may) make any Revolving Loan or issue or amend any Letter of Credit from and after such time as the purposes Administrative Agent has received the Notice of this Agreement; andIntent to Cure unless and until the Cure Amount is actually received.
(c2) Notwithstanding anything herein to the contrary, (i) in In each period of four consecutive fiscal quarter period of the Borrower quarters, there shall be at least no more than two (2) fiscal quarters in which the Cure Right cure right set forth in Section 8.04(1) is not exercised, .
(ii3) There shall be no more than five (5) fiscal quarters in which the cure rights set forth in Section 8.04(1) are exercised during the term of this Agreementthe Facilities; provided that, so long as the Cure Right shall not Closing Date Revolving Facility is no longer outstanding, there may be exercised more than five times, (iii) an additional fiscal quarter after the Cure Amount shall be no greater than Original Revolving Facility Maturity Date in which the amount required for purposes of complying with the Financial Performance Covenant and any amounts in excess thereof shall not be deemed to be a Cure Amount and (iv) the Lenders shall not be required to make a Loan or issue, amend, renew or extend any Letter of Credit unless and until the Borrower has received the Cure Amount required to cause the Borrower and the Restricted Subsidiaries to be in compliance with the Financial Performance Covenants. Notwithstanding any other provision cure rights set forth in this Agreement to Section 8.04 are exercised during the contrary, the Cure Amount received pursuant to term of any exercise of the Cure Right shall be disregarded for purposes of determining the Available Amount, the Available Equity Amount, any financial ratio-based conditions or tests, pricing or any available basket under Article VI of this AgreementRevolving Commitments.
Appears in 1 contract
Right to Cure. (a) Notwithstanding anything to the contrary contained in Section 7.018.01 or 8.02, in the event that the Borrower and its Restricted Subsidiaries Borrowers fail to comply with the requirements of the Financial Performance Covenant as at any time when the Borrowers are required to comply with such Financial Covenant, pursuant to the terms thereof, then from the end of the last day of any most recently ended fiscal quarter of the Borrower, at any time after the beginning of such fiscal quarter Holdings until the expiration of the 10th twentieth (20th) Business Day following subsequent to the date on which the financial statements with respect to such fiscal quarter (or the fiscal year ended on the last day of such fiscal quarter) are relevant Compliance Certificate is required to be delivered pursuant to Section 5.01(a6.02(a) or Section 5.01(b(the last day of such period being the “Anticipated Cure Deadline”), the Borrower Holdings or any Parent Entity Holding Company thereof shall have the right (the “Cure Right”) to issue common Equity Interests or other Equity Interests Capital Stock (provided such other Equity Interests are and/or preferred equity and/or convertible preferred equity and/or in another form reasonably satisfactory acceptable to the Administrative Agent) for cash and contribute the proceeds therefrom in the form of common Capital Stock (and/or preferred equity and/or convertible preferred equity in another form reasonably acceptable to the Administrative Agent) to the U.S. Borrower or obtain a contribution to its equity (which shall be in the form of common equity or otherwise receive cash contributions to the capital of the Borrower as cash common Equity Interests or other Equity Interests (provided such other Equity Interests are in a form reasonably satisfactory acceptable to the Administrative Agent) (collectively, the “Cure RightEquity”), and upon the receipt by the U.S. Borrower of the Net Proceeds of such issuance that are not otherwise applied cash (the “Cure Amount”) ), pursuant to the exercise by the Borrower Borrowers of such Cure Right such Right, the calculation of Consolidated EBITDA as used in the Financial Performance Covenant shall be recalculated giving effect to the following pro forma adjustmentadjustments:
(ai) Consolidated EBITDA shall be increased with respect to for such applicable fiscal quarter (and for any four fiscal quarter subsequent period that contains includes such fiscal quarter) shall be increased, solely for the purpose of measuring the Financial Performance Covenant and not for any other purpose under this AgreementAgreement (including but not limited to determining the availability or amount of any covenant baskets or carve-outs (including the determination of amounts available under Section 7.05) or determining the Applicable Commitment Fee or Applicable Rate, provided that, in determining the Applicable Commitment Fee or the Applicable Rate, effect shall be given to the relevant Cure Amount for purposes of clause (y) in the respective definitions thereof, such that no Event of Default shall be deemed to have occurred and be continuing), by an amount equal to the Cure Amount; provided that (1) the receipt by such Borrower of the Cure Amount pursuant to the Cure Right shall be deemed to have no other effect under this Agreement (including but not limited to determining the availability or amount of any covenant baskets or carve-outs or determining the Applicable Commitment Fee or Applicable Rate, provided that, in determining the Applicable Commitment Fee or the Applicable Rate, effect shall be given to the relevant Cure Amount for purposes of clause (y) in the respective definitions thereof, such that no Event of Default shall be deemed to have occurred and be continuing) and (2) no Cure Amount shall reduce Indebtedness on a Pro Forma Basis for the fiscal quarter for which the Cure Right was exercised for purposes of calculating the Financial Covenant (whether as a result of a prepayment of the Loans or via netting of such Cure Amount);
(bii) if, after giving effect to the foregoing pro forma adjustment (without giving effect to any portion of the Cure Amount on the balance sheet of the Borrower and its Restricted Subsidiaries with respect to such fiscal quarter only but with giving pro forma effect to any portion of the Cure Amount applied to any repayment of any Indebtedness)recalculations, the Borrower and its Restricted Subsidiaries Borrowers shall then be in compliance with the requirements of the Financial Performance CovenantsCovenant, the Borrower and its Restricted Subsidiaries Borrowers shall be deemed to have satisfied the requirements of the Financial Performance Covenant as of the relevant date of determination with the same effect as though there had been no failure to comply therewith at such date, and the applicable breach or default of the Financial Performance Covenant that had occurred (and any other Default as a result thereof, including the failure to meet any condition requiring no Default or Event of Default based solely on the basis of any actual or purported Event of Default under the Financial Covenant) shall be deemed cured for the purposes of this Agreement; and
(ciii) upon receipt by the Administrative Agent of written notice, on or prior to the Anticipated Cure Deadline, that the Borrowers intend to exercise the Cure Right in respect of a fiscal quarter, the Lenders (i) shall not be permitted to accelerate Loans held by them, to terminate the Revolving Credit Commitments held by them or to exercise remedies against the Collateral on the basis of a failure to comply with the requirements of the Financial Covenant, unless such failure is not cured pursuant to the exercise of the Cure Right on or prior to the Anticipated Cure Deadline and (ii) shall not be obligated to make any Credit Extension under the Revolving Credit Facility until such Cure Amount has been received by such Borrower.
(b) Notwithstanding anything herein to the contrary, (i) in each four consecutive fiscal fiscal-quarter period of the Borrower there shall be at least two fiscal quarters in respect of which the Cure Right is not exercised, (ii) there can be no more than five fiscal quarters in respect of which the Cure Right is exercised during the term of this Agreement, the Cure Right shall not be exercised more than five times, Facilities and (iii) if, prior to the Anticipated Cure Amount shall be no greater than Deadline, (x) the Borrowers repay or otherwise reduce the Revolving Credit Loans outstanding and/or (y) there is a change in the aggregate amount required for purposes of complying with Adjusted Cash and Cash Equivalents of the Borrowers and the other Restricted Subsidiaries, as applicable, such that the Financial Performance Covenant would not have been tested for the immediately preceding fiscal quarter after giving pro forma effect to such repayment or reduction of the Revolving Credit Loans and/or such change in Adjusted Cash and any amounts in excess thereof Cash Equivalents, then the Borrowers shall not be deemed to be a Cure Amount and (iv) have satisfied the Lenders shall not be required requirements of the Financial Covenant as of the relevant date of determination with the same effect as though there had been no failure to make a Loan or issuecomply therewith at such date, amend, renew or extend any Letter of Credit unless and until the Borrower has received the Cure Amount required to cause the Borrower and the Restricted Subsidiaries to be in compliance with applicable breach or default of the Financial Performance Covenants. Notwithstanding Covenant that had occurred (and any other provision in this Agreement Default a result thereof, including the failure to meet any condition requiring no Default or Event of Default based solely on the contrary, basis of any actual or purported Event of Default under the Cure Amount received pursuant to any exercise of the Cure Right Financial Covenant) shall be disregarded deemed cured for the purposes of determining the Available Amount, the Available Equity Amount, any financial ratio-based conditions or tests, pricing or any available basket under Article VI of this Agreement.
Appears in 1 contract
Right to Cure. Notwithstanding anything If Seller receives written notice of unmerchantability of title or any other unsatisfactory title condition(s) as provided in subparagraphs (a) or (b) above (the “Title Defects”), Seller shall, within five (5) days after Seller’s receipt of the written notice(s) of Title Defects, notify Purchaser as to those Title Defects, if any, that Seller shall attempt to cure prior to closing (“Seller’s Response Notice”). If such notice is given to Purchaser less than six calendar days prior to closing and upon notice to Purchaser, Seller shall request that closing be delayed for five days. If Seller fails to deliver such Seller’s Response Notice to Purchaser within such five (5) days, Seller shall be deemed to have notified Purchaser that Seller shall not cure any Title Defect(s) raised in Purchaser’s written notice. If Seller notifies Purchaser (or is deemed to notify Purchaser) that it will not cure any or all Title Defect(s) , then Purchaser may (i) terminate this Contract by written notice to Seller given within two (2) business days after Purchaser receives (or is deemed to receive) Seller’s Response Notice in which event the Xxxxxxx Money, together with all interest earned thereon shall be returned to Purchaser and neither party shall have any further liability to the contrary contained other hereunder except as expressly set forth in Section 7.01this Contract; or (ii) proceed to close with no reduction in or offset against the purchase price, in the event that the Borrower and its Restricted Subsidiaries fail thereafter Purchaser shall be deemed to comply with the requirements of the Financial Performance Covenant have accepted such Title Defect(s) as of the last day of permitted title exceptions and Purchaser shall have waived any fiscal quarter of the Borrower, at any time after the beginning of such fiscal quarter until the expiration of the 10th Business Day following the date on which the financial statements and all claims and liabilities against Seller with respect to such fiscal quarter (Title Defect(s). If Seller fails to correct Title Defect(s) it had notified Purchaser in writing that it would correct on or before the fiscal year ended date of closing, then at Purchaser’s option, such option to be exercised by Purchaser by written notice to Seller on the last day date of closing, (i) Purchaser may take title subject to such fiscal quarterTitle Defect(s) are required to be delivered pursuant to Section 5.01(a) or Section 5.01(b), and the Borrower or any Parent Entity thereof shall have the right to issue common Equity Interests or other Equity Interests (provided such other Equity Interests are reasonably satisfactory to the Administrative Agent) for cash or otherwise receive cash contributions to the capital of the Borrower as cash common Equity Interests or other Equity Interests (provided such other Equity Interests are reasonably satisfactory to the Administrative Agent) (collectively, the “Cure Right”), and upon the receipt by the Borrower of the Net Proceeds of such issuance that are not otherwise applied (the “Cure Amount”) pursuant to the exercise by the Borrower of such Cure Right such Financial Performance Covenant purchase price shall be recalculated giving effect to the following pro forma adjustment:
(a) Consolidated EBITDA shall be increased with respect to such applicable fiscal quarter and any four fiscal quarter period that contains such fiscal quarter, solely for the purpose of measuring the Financial Performance Covenant and not for any other purpose under this Agreement, reduced by an amount equal to the Cure Amount;
(b) if, after giving effect to the foregoing pro forma adjustment (without giving effect to any portion 125% of the Cure Amount on the balance sheet of the Borrower and its Restricted Subsidiaries with respect amount necessary to correct such fiscal quarter only but with giving pro forma effect to any portion of the Cure Amount applied to any repayment of any Indebtedness), the Borrower and its Restricted Subsidiaries shall then be in compliance with the requirements of the Financial Performance Covenants, the Borrower and its Restricted Subsidiaries shall be deemed to have satisfied the requirements of the Financial Performance Covenant as of the relevant date of determination with the same effect as though there had been no failure to comply therewith at such date, and the applicable breach defect ; or default of the Financial Performance Covenant that had occurred shall be deemed cured for the purposes of this Agreement; and
(c) Notwithstanding anything herein to the contrary, (i) in each four consecutive fiscal quarter period of the Borrower there shall be at least two fiscal quarters in which the Cure Right is not exercised, (ii) during Purchaser may terminate this Contract, in which case the term of this Agreement, the Cure Right shall not be exercised more than five times, (iii) the Cure Amount Xxxxxxx Money together with accrued interest thereon shall be no greater than the amount required for purposes of complying with the Financial Performance Covenant returned to Purchaser, and any amounts in excess thereof shall not be deemed to be a Cure Amount and (iv) the Lenders shall not be required to make a Loan or issue, amend, renew or extend any Letter of Credit unless and until the Borrower has received the Cure Amount required to cause the Borrower and the Restricted Subsidiaries to be in compliance with the Financial Performance Covenants. Notwithstanding any other provision except as otherwise expressly provided in this Agreement to the contraryContract, the Cure Amount received pursuant to neither party shall have any exercise of the Cure Right shall be disregarded for purposes of determining the Available Amount, the Available Equity Amount, any financial ratio-based conditions further rights or tests, pricing or any available basket under Article VI of this Agreementobligations hereunder.
Appears in 1 contract
Samples: Commercial Purchase Contract
Right to Cure. (a) Notwithstanding anything to the contrary contained in Section 7.018.01 or 8.02, in during the event that the Borrower and its Restricted Subsidiaries fail to comply with the requirements of the Financial Performance Covenant as of the last day of any fiscal quarter of the Borrower, at any time period commencing after the beginning of such the last fiscal quarter until the expiration of the 10th included in every applicable Test Period and ending 10 Business Day following Days after the date on which the financial statements with respect to such fiscal quarter (or the fiscal year ended on the last day of such fiscal quarter) are relevant Compliance Certificate is required to be delivered pursuant to Section 5.01(a6.02(b) or Section 5.01(bfor such fiscal quarter (the last day of such period being the “Anticipated Cure Deadline”), the Borrower or any Parent Entity thereof shall have the right (the “Cure Right”) to issue cause an equity contribution to the common Equity Interests equity capital of the Borrower (or other Equity Interests (provided such other Equity Interests are in another form not constituting Disqualified Stock and reasonably satisfactory acceptable to the Administrative Agent) for cash or otherwise receive cash contributions to be made to the capital of the Borrower as cash common Equity Interests on or other Equity Interests (provided such other Equity Interests are reasonably satisfactory prior to the Administrative Agent) (collectively, the “Anticipated Cure Right”), and upon the receipt by the Borrower of the Net Proceeds of such issuance that are not otherwise applied Deadline (the “Cure Amount”) pursuant ), designated as an increase to the exercise by Consolidated EBITDA of the Borrower of such Cure Right such Financial Performance Covenant shall be recalculated giving effect to for the following pro forma adjustment:
applicable fiscal quarter, provided: (ai) Consolidated EBITDA shall be increased with respect to for such applicable fiscal quarter (and for any four fiscal quarter subsequent period that contains includes such fiscal quarter) shall be increased, solely for the purpose of measuring the Financial Performance Covenant Covenants and not for any other purpose under this AgreementAgreement (including but not limited to determining the availability or amount of any covenant baskets or carve-outs (including the determination of amounts available under Section 7.05)), by an amount equal to the Cure Amount;
; provided that no Cure Amount shall reduce Indebtedness for the applicable period for purposes of calculating the Leverage Covenant (bunless such Cure Amount is actually used to prepay any Indebtedness of the Borrower and the Restricted Subsidiaries, in which case such reduction of Indebtedness shall be given effect in future fiscal quarters), nor shall any Cure Amount held by the Borrower qualify as “unrestricted cash or Cash Equivalents of the Group Party” for the purposes of calculating any net obligations or liabilities under the terms of this Agreement; and (ii) if, after giving effect to the foregoing pro forma adjustment (without giving effect to any portion of the Cure Amount on the balance sheet of the Borrower and its Restricted Subsidiaries with respect to such fiscal quarter only but with giving pro forma effect to any portion of the Cure Amount applied to any repayment of any Indebtedness)recalculations, the Borrower and its Restricted Subsidiaries shall then be in compliance with the requirements of the Financial Performance Covenants, the Borrower and its Restricted Subsidiaries shall be deemed to have satisfied the requirements of the Financial Performance Covenant Covenants as of the relevant date of determination with the same effect as though there had been no failure to comply therewith at such date, and the applicable breach or default of the Financial Performance Covenant that had occurred shall be deemed cured for the purposes of this Agreement; andat
(cb) Notwithstanding anything herein to the contrary, (i) in each four (4) consecutive fiscal fiscal- quarter period of the Borrower there shall be at least two (2) fiscal quarters in respect of which the Cure Right is not exercised, (ii) there can be no more than five (5) fiscal quarters in respect of which the Cure Right is exercised during the term of the Facilities and (iii) for purposes of this AgreementSection 8.03, the Cure Right shall not be exercised more than five times, (iii) the Cure Amount utilized shall be no greater than the minimum amount required for purposes of complying to remedy the applicable failure to comply with the applicable Financial Performance Covenant and any amounts in excess thereof shall not be deemed to be a Cure Amount and (iv) the Lenders shall not be required to make a Loan or issue, amend, renew or extend any Letter of Credit unless and until the Borrower has received the Cure Amount required to cause the Borrower and the Restricted Subsidiaries to be in compliance with the Financial Performance Covenants. Notwithstanding any other provision in this Agreement to the contrary, the Cure Amount received pursuant to any exercise of the Cure Right shall be disregarded for purposes of determining the Available Amount, the Available Equity Amount, any financial ratio-based conditions or tests, pricing or any available basket under Article VI of this AgreementCovenant.
Appears in 1 contract
Samples: Credit Agreement (V2X, Inc.)
Right to Cure. (i) Notwithstanding anything to the contrary contained in Section 7.018.01(b), in the event that the Borrower and its Restricted Subsidiaries fail fails to comply with the requirements of the Financial Performance Covenant as of Covenants, from the last day of any fiscal quarter of the Borrower, at any time after the beginning of such fiscal quarter Test Period until the expiration of the 10th fifteenth Business Day following after the date on which the financial statements with respect to the Test Period in which such fiscal quarter (or the fiscal year ended on the last day of such fiscal quarter) covenant is being measured are required to be delivered pursuant to Section 5.01(a) or Section 5.01(b)6.01, the Borrower or may designate any Parent Entity thereof shall have direct equity investment in the right to issue Borrower in cash in the form of common Equity Interests (or other Qualified Equity Interests (provided such other Equity Interests are of the Borrower reasonably satisfactory acceptable to the Administrative Agent) for cash or otherwise receive cash contributions to made during the capital Test Period until the end of the Borrower such time period as cash common Equity Interests or other Equity Interests a Cure Amount (provided such other Equity Interests are reasonably satisfactory to the Administrative Agent) (collectively, the “Cure Right”), and upon the receipt by the Borrower of net cash proceeds corresponding to the Net Proceeds exercise of such issuance that are not otherwise applied the Cure Right (the “Cure Amount”) pursuant to ), the exercise by the Borrower of such Cure Right such Financial Performance Covenant Covenants shall be recalculated recalculated, giving effect to the following a pro forma adjustment:
increase to Consolidated EBITDA for such Test Period in an amount equal to such Cure Amount; provided that (ax) such pro forma adjustment to Consolidated EBITDA shall be increased with respect to such applicable fiscal quarter and any four fiscal quarter period that contains such fiscal quarter, given solely for the purpose of measuring determining the existence of a Default or an Event of Default under the Financial Performance Covenant Covenants with respect to any Test Period that includes the fiscal quarter for which such Cure Right was exercised and not for any other purpose under this Agreementany Loan Document (including, by an without limitation, for purposes of determining pricing, mandatory prepayments and the availability or amount equal permitted pursuant to any covenant under Article VII) for the quarter with respect to which such Cure Right was exercised and (y) there shall be no reduction in Indebtedness in connection with any Cure Amounts for determining compliance with Section 7.09 and no Cure Amounts will reduce (or count towards) the First Lien Leverage Ratio, the Secured Leverage Ratio or the Total Leverage Ratio for purposes of any calculation thereof, in each case, for the fiscal quarter with respect to which such Cure Right was exercised, except that with respect to fiscal quarters thereafter, such reduction may apply but only to the Cure Amount;extent the proceeds are actually applied to prepay Indebtedness pursuant to Section 2.05(a).
(bii) ifIf, after giving effect to the foregoing pro forma adjustment (without giving effect to any portion exercise of the Cure Amount on Right and the balance sheet of the Borrower and its Restricted Subsidiaries with respect recalculations pursuant to such fiscal quarter only but with giving pro forma effect to any portion of the Cure Amount applied to any repayment of any Indebtedness)clause (a) above, the Borrower and its Restricted Subsidiaries shall then be in compliance with the requirements of the Financial Performance CovenantsCovenants during such Test Period (including for purposes of Section 4.02), the Borrower and its Restricted Subsidiaries shall be deemed to have satisfied the requirements of the Financial Performance Covenant Covenants as of the relevant date of determination with the same effect as though there had been no failure to comply therewith at such date, and the applicable breach Default or default Event of the Financial Performance Covenant Default under Section 8.01 that had occurred shall be deemed cured for cured; provided that (i) the purposes of this Agreement; and
Cure Right may be exercised on no more than five (c5) Notwithstanding anything herein to the contraryoccasions, (iii) in each four consecutive fiscal quarter period of the Borrower period, there shall be at least two fiscal quarters in respect of which the no Cure Right is not exercised, (ii) during the term of this Agreement, the Cure Right shall not be exercised more than five times, and (iii) with respect to any exercise of the Cure Right, the Cure Amount shall be no greater than the amount required for purposes of complying to cause the Borrower to be in compliance with the Financial Performance Covenant and any amounts Covenants.
(iii) Notwithstanding anything in excess thereof this Agreement to the contrary, following the delivery by the Borrower of a written notice to the Administrative Agent of its intent to exercise the Cure Right (x) the Lenders shall not be deemed permitted to be exercise any rights then available as a result of an Event of Default under this Article VIII on the basis of a breach of the Financial Covenants so as to enable the consummation of the Cure Amount Right as permitted under this Section 8.05 and (ivy) the Lenders shall not be required to make a Loan or issue, amend, renew or extend any Letter of Credit Extension and the L/C Issuers shall not be required to make any L/C Credit Extension unless and until the Borrower has received the Cure Amount required to cause the Borrower and the Restricted Subsidiaries to be in compliance with the Financial Performance Covenants. Notwithstanding any other provision in this Agreement to the contrary, the Cure Amount received pursuant to any exercise of the Cure Right shall be disregarded for purposes of determining the Available Amount, the Available Equity Amount, any financial ratio-based conditions or tests, pricing or any available basket under Article VI of this Agreement.
Appears in 1 contract
Right to Cure. Notwithstanding anything to the contrary contained in Section 7.01, in the event that the Borrower and its Restricted Subsidiaries fail fails to comply with the requirements of the Financial Performance Covenant as of the last day of any fiscal quarter of the BorrowerMaintenance Covenants described in Section 6.13(a) and Section 6.13(b), at any time after from the beginning first day of such fiscal applicable quarter until the expiration of the 10th fifteenth Business Day following subsequent to the date on which the financial statements with respect to such fiscal quarter (or the fiscal year ended on the last day of such fiscal quarter) are required to be delivered pursuant to Section 5.01(a) or Section 5.01(b), as applicable, the Borrower (or any Parent Entity thereof thereof) shall have the right to issue common Qualified Equity Interests or other Equity Interests (provided such other Equity Interests are reasonably satisfactory to the Administrative AgentAgent (but excluding Disqualified Equity Interests) (each such issuance taken pursuant and in accordance with this Section 7.02, a “Specified Equity Issuance”) for cash or otherwise receive cash contributions to (or in the capital case of any other Parent Entity, receive equity interests in the Borrower for its cash contributions to) the Equity Interests (other than Disqualified Equity Interests) of the Borrower as cash common equity or other Qualified Equity Interests or other Equity Interests (provided such other Equity Interests are reasonably satisfactory to the Administrative Agent) , in each case, which are contributed to the Borrower in the form of cash (collectively, the “Cure Right”), and upon the receipt by the Borrower of the Net Proceeds of such issuance that are not otherwise applied Not Otherwise Applied (the “Cure Amount”) pursuant to the exercise by the Borrower of such Cure Right such Right, the Financial Performance Maintenance Covenant shall be recalculated giving pro form effect to the following pro forma adjustment:
(ai) Consolidated EBITDA and/or Consolidated Cash EBITDA shall be increased with respect to such applicable fiscal quarter with respect to which such Cure Amount is received by the Borrower and any four fiscal quarter period Test Period that contains includes such fiscal quarter, solely for the purpose of measuring the applicable Financial Performance Covenant Maintenance Covenant(s) and not for any other purpose under this Agreement, by an amount equal to the Cure AmountAmount and (ii) with respect to the LTV Covenant, Consolidated Total Net Debt shall be reduced by the portion of the Cure Amount that is actually applied to prepay such Indebtedness;
(b) if, after giving effect to the foregoing pro forma adjustment (without giving effect to any portion of the Cure Amount on the balance sheet of the Borrower and its Restricted Subsidiaries with respect to such fiscal quarter only but with giving pro forma effect to any portion of the Cure Amount applied to any repayment of any Indebtedness)recalculation, the Borrower and its Restricted Subsidiaries shall then be in compliance with the requirements of the applicable Financial Performance CovenantsMaintenance Covenant(s), the Borrower and its Restricted Subsidiaries shall be deemed to have satisfied the requirements of the applicable Financial Performance Covenant Maintenance Covenant(s) as of the relevant date of determination with the same effect as though there had been no failure to comply therewith at such date, and the applicable breach or default of the applicable Financial Performance Covenant Maintenance Covenant(s) that had occurred shall be deemed cured for the purposes of this Agreement; and;
(c) Notwithstanding upon the Administrative Agent’s receipt of a written notice from the Borrower that the Borrower intends to exercise the Cure Right (a “Notice of Intent to Cure”), until the fifteenth Business Day following the date on which financial statements for the fiscal quarter to which such Notice of Intent to Cure relates are required to be delivered pursuant to Section 5.01(a) or (b)(i), as applicable, neither the Administrative Agent (nor any sub-agent therefor) nor any Lender shall exercise any right to accelerate the Loans or terminate the Revolving Commitments, and none of the Administrative Agent (nor any subagent therefor) nor any Lender or Secured Party shall exercise any right to foreclose on or take possession of the Collateral or any other right or remedy under the Loan Documents solely on the basis of the relevant failure to comply with Section 6.13;
(d) there shall be no pro forma or other reduction of the amount of Consolidated Total Net Debt (by netting or otherwise) by the amount of the applicable Cure Amount for purposes of determining compliance with Section 6.13(a) in the fiscal quarter in respect of which the Cure Right was exercised; provided that, any portion of such Cure Amount that is actually applied to repay Indebtedness or “netted” against such Indebtedness shall reduce Consolidated Total Net Debt in future Test Periods which include such fiscal quarter;
(e) notwithstanding anything herein to the contrary, (i) in each four consecutive fiscal quarter period of the Borrower there shall be at least no more than two fiscal quarters in which the Cure Right is not exercised, (ii) during the term of this Agreement, the Cure Right shall not be exercised more than five times, times and (iii) for purposes of this Section 7.02, the Cure Amount shall be no greater than the amount required for purposes of complying with the applicable Financial Performance Covenant and any amounts in excess thereof shall not be deemed to be a Cure Amount and (iv) the Lenders shall not be required to make a Loan or issue, amend, renew or extend any Letter of Credit unless and until the Borrower has received the Cure Amount required to cause the Borrower and the Restricted Subsidiaries to be in compliance with the Financial Performance CovenantsMaintenance Covenant(s). Notwithstanding any other provision in this Agreement to the contrary, during any Test Period in which any Cure Amount is included in the calculation of Consolidated EBITDA and/or Consolidated Cash EBITDA as a result of any exercise of the Cure Right, the Cure Amount received pursuant to any exercise of the Cure Right shall be (A) counted solely as an increase to Consolidated EBITDA and/or Consolidated Cash EBITDA for the purpose of determining compliance with the applicable Financial Maintenance Covenant(s) and (B) disregarded for purposes of determining the Available Amount, the Available Equity Amount, any financial ratio-based conditions or testsprovisions, pricing Applicable Rate or any available basket under Article VI of this Agreement; and
(f) no Revolving Lender, Swingline Lender or Issuing Bank shall make any Revolving Loan or Swingline Loan or to issue any Letter of Credit from and after such time as the Administrative Agent has received the Notice of Intent to Cure unless and until the Cure Amount is actually received by the Borrower.
Appears in 1 contract
Right to Cure. If Landlord shall fail to perform any obligation under this Lease required to be performed by Landlord, Landlord shall not be deemed to be in default hereunder nor subject to any claims for damages of any kind, unless such failure shall have continued for a period of thirty (30) days (or, in an emergency situation, five (5) days) after notice thereof by Tenant (provided, if the nature of Landlord's failure is such that more time is reasonably required in order to cure, Landlord shall not be in default if Landlord commences to cure within such applicable period and thereafter diligently seeks to cure such failure to completion). If Landlord shall default and fail to cure as provided herein, Tenant shall have such rights and remedies as may be available to Tenant under applicable Laws, subject to the other provisions of this Lease; provided, Tenant shall have no right of self-help to perform repairs or any other obligation of Landlord (except as set forth in the following paragraph), and shall have no right to withhold, setoff, or xxxxx Rent, except as may be expressly provided in this Lease (including, without limitation, Section 6E), and shall have no right to terminate this Lease without entry of an order and judgment by a court of competent jurisdiction (provided that should Tenant prove a breach by Landlord entitling Tenant to terminate this Lease, Tenant shall not be responsible for performance of obligations under this Lease arising after the earlier to occur of the following:
(a) the effective termination date as determined by the court in its order or judgment, or
(b) the later to occur of: (i) Landlord's breach giving rise to such termination, or (ii) any applicable period for Landlord to cure following notice or other time period specifically set forth in this Lease, such as the time periods set forth in Article 11.D (as determined by the court in its order or judgment); provided, in any case, Tenant shall comply with all obligations under this Lease until Tenant vacates the Premises in the condition required Article 23 of this Lease. Tenant hereby expressly waives the provisions of any Law to the contrary. Notwithstanding anything to the contrary contained in Section 7.01herein, in if Landlord fails to make any repairs within the event that Premises which Landlord is obligated to perform under this Lease, and which do not affect the Borrower Systems or Equipment, and its Restricted Subsidiaries fail to comply with the requirements such failure directly and adversely affects Tenants use of the Financial Performance Covenant as Premises, and Tenant gives Landlord reasonable advance notice of Xxxxxx's intent to perform such work, describing the same in detail, and enclosing a copy of the last day of any fiscal quarter of the Borrower, at any time after the beginning of such fiscal quarter until the expiration of the 10th Business Day following the date on proposed contract (which the financial statements with respect to such fiscal quarter (or the fiscal year ended on the last day of such fiscal quarter) are required to be delivered pursuant to Section 5.01(a) or Section 5.01(b), the Borrower or any Parent Entity thereof shall have the right to issue common Equity Interests or other Equity Interests (provided such other Equity Interests are reasonably satisfactory to the Administrative Agent) for cash or otherwise receive cash contributions to the capital of the Borrower as cash common Equity Interests or other Equity Interests (provided such other Equity Interests are reasonably satisfactory to the Administrative Agent) (collectively, the “Cure Right”), and upon the receipt by the Borrower of the Net Proceeds of such issuance that are not otherwise applied (the “Cure Amount”) pursuant to the exercise by the Borrower of such Cure Right such Financial Performance Covenant shall be recalculated giving effect to the following pro forma adjustment:
(a) Consolidated EBITDA shall be increased with respect to such applicable fiscal quarter and any four fiscal quarter period that contains such fiscal quarter, solely for the purpose of measuring the Financial Performance Covenant and not for any other purpose under this Agreement, by an amount equal to the Cure Amount;
(b) if, after giving effect to the foregoing pro forma adjustment (without giving effect to any portion of the Cure Amount on the balance sheet of the Borrower and its Restricted Subsidiaries with respect to such fiscal quarter only but with giving pro forma effect to any portion of the Cure Amount applied to any repayment of any Indebtedness), the Borrower and its Restricted Subsidiaries shall then be in compliance with the requirements of the Financial Performance Covenants, the Borrower and its Restricted Subsidiaries shall be deemed to have satisfied the requirements of the Financial Performance Covenant as of the relevant date of determination with the same effect as though there had been no failure to comply therewith at such date, and the applicable breach or default of the Financial Performance Covenant that had occurred shall be deemed cured for the purposes of this Agreement; and
(c) Notwithstanding anything herein to the contrary, (i) in each four consecutive fiscal quarter period of the Borrower there notice shall be at least two fiscal quarters ten (10) days in advance, except to the extent that there is an immediate threat to Tenants property or business or to persons), then Tenant may make such repairs in a good and workmanlike manner using a contractor which is then currently approved in writing by Landlord to perform work in the Cure Right is not exercisedProperty provided Xxxxxxxx has previously provided to Tenant such a list (and in absence of such list, (ii) during such repairs shall be made by a contractor selected by Tenant), at a competitive and reasonable cost, and subject to all of the term other provisions of this AgreementLease respecting work at the Property other than those provisions requiring any additional approvals from Landlord, the Cure Right shall not be exercised more than five times, (iii) the Cure Amount shall be no greater than the amount required for purposes of complying with the Financial Performance Covenant and any amounts in excess thereof shall not be deemed to be a Cure Amount and (iv) the Lenders shall not be required to make a Loan or issue, amend, renew or extend any Letter of Credit unless and until the Borrower has received the Cure Amount required to cause the Borrower and the Restricted Subsidiaries to be in compliance with Property rules and regulations pertaining thereto. In such case, Landlord shall reimburse Tenant therefor within thirty (30) days after the Financial Performance Covenants. Notwithstanding any other provision in this Agreement to the contrary, the Cure Amount received pursuant to any exercise completion of the Cure Right repairs by Xxxxxx and Landlord's receipt of a copy of the paid invoice and reasonable supporting documentation, including, but not limited to, recordable lien releases and affidavits of payment in statutory form acceptable to Landlord, but Tenant shall be disregarded for purposes of determining the Available Amount, the Available Equity Amount, any financial ratio-based conditions have no right to withhold or tests, pricing or any available basket under Article VI of this Agreementset off such amount against Rent.
Appears in 1 contract
Samples: Office Lease (Red Hat Inc)
Right to Cure. (a) Notwithstanding anything to the contrary contained in Section 7.01, in the event that if the Borrower and its Restricted Subsidiaries fail to comply with the requirements determines that an Event of the Financial Performance Covenant as of the last day Default in respect of any fiscal quarter of Financial Covenant has occurred or may occur, during the Borrower, at any time period commencing after the beginning of such the last fiscal quarter until the expiration of the 10th included in such Test Period and ending 15 Business Day following Days after the date on which the financial statements are required to be delivered hereunder with respect to such fiscal quarter (or the fiscal year ended on the last day of such fiscal quarter) are required to be delivered pursuant to Section 5.01(a) or Section 5.01(b“Cure Expiration Date”), a Designated Equity Contribution may be made to the Borrower or any Parent Entity Borrower, and the amount of the net cash proceeds thereof shall have the right be deemed to issue common Equity Interests or other Equity Interests (increase Consolidated EBITDA with respect to such applicable quarter; provided that such other Equity Interests net cash proceeds are reasonably satisfactory to the Administrative Agent) for cash or otherwise receive cash contributions to the capital of actually received by the Borrower as cash common Equity Interests or other Equity Interests equity (provided including through capital contribution of such other Equity Interests are reasonably satisfactory net cash proceeds to the Administrative AgentBorrower) (collectively, during the “Cure Right”), and upon period commencing after the receipt beginning of the last fiscal quarter included in such Test Period by the Borrower and ending on the Cure Expiration Date. The parties hereby acknowledge that this Section 7.02(a) may not be relied on for purposes of calculating any financial ratios other than as applicable to the Financial Covenants. Notwithstanding anything to the contrary contained in Section 7.01, (A) upon designation of the Net Proceeds of such issuance that are not otherwise applied (the “Cure Amount”) pursuant to the exercise Designated Equity Contribution by the Borrower of such Cure Right such Financial Performance Covenant shall be recalculated giving effect to the following pro forma adjustment:
(a) Consolidated EBITDA shall be increased with respect to such applicable fiscal quarter and any four fiscal quarter period that contains such fiscal quarter, solely for the purpose of measuring the Financial Performance Covenant and not for any other purpose under this Agreement, by in an amount equal necessary to the Cure Amount;
(b) if, after giving effect to the foregoing pro forma adjustment (without giving effect to cure any portion Event of the Cure Amount on the balance sheet of the Borrower and its Restricted Subsidiaries with Default in respect to such fiscal quarter only but with giving pro forma effect to any portion of the Cure Amount applied to any repayment of any Indebtedness)Financial Covenant, the Borrower and its Restricted Subsidiaries shall then be in compliance with the requirements of the Financial Performance Covenants, the Borrower and its Restricted Subsidiaries shall such covenant will be deemed to have satisfied the requirements of the Financial Performance Covenant and complied with as of the end of the relevant date of determination fiscal quarter with the same effect as though there had been no failure to comply therewith at with such datecovenant and any Event of Default under such covenant (and any other Default as a result thereof) will be deemed not to have occurred for purposes of the Loan Documents, and (B) from and after the applicable breach or default of date that the Financial Performance Covenant that had occurred shall be deemed cured for the purposes of this Agreement; and
(c) Notwithstanding anything herein Borrower delivers a written notice to the contraryAdministrative Agent that it intends to exercise its cure right under this Section 7.02 (a “Notice of Intent to Cure”) neither the Administrative Agent nor any Lender may exercise any rights or remedies under Section 7.01 (or under any other Loan Document) with respect to the quarter for which a Notice of Intent to Cure has been provided (and any other Default as a result thereof), but the Borrower shall not be permitted to borrow Revolving Loans or Swing Line Loans or make any request for an LC Credit Extension, until and unless the Cure Expiration Date has occurred without the Designated Equity Contribution having been made.
(i) in In each period of four consecutive fiscal quarter period of the Borrower quarters, there shall be at least two fiscal quarters in which the Cure Right no Designated Equity Contribution is not exercisedmade, (ii) no more than five Designated Equity Contributions may be made in the aggregate during the term of this Agreement, the Cure Right shall not be exercised more than five times, (iii) the Cure Amount amount of any Designated Equity Contribution shall be no greater more than the amount required for purposes of complying with the Financial Performance Covenant and any amounts in excess thereof shall not be deemed to be a Cure Amount and (iv) the Lenders shall not be required to make a Loan or issue, amend, renew or extend any Letter of Credit unless and until the Borrower has received the Cure Amount required to cause the Borrower and the Restricted Subsidiaries to be in Pro Forma Compliance with the Financial Covenants for any applicable period, (iv) there shall be no pro forma reduction in Indebtedness with the proceeds of any Designated Equity Contribution for determining compliance with the Financial Performance Covenants. Notwithstanding any other provision in this Agreement Covenants for the fiscal quarter with respect to which such Designated Equity Contribution was made; provided that to the contraryextent such proceeds are actually applied to prepay Indebtedness, such reduction may be credited in any subsequent fiscal quarter and (v) other than as set forth in the proviso to clause (iv) above, the Cure Amount received pursuant to any exercise of the Cure Right shall foregoing may not be disregarded relied on for purposes of determining the Available Amount, the Available Equity Amount, calculating any financial ratio-based conditions ratios other than compliance with the Financial Covenants and shall not result in any adjustment to any “baskets” or tests, pricing or any available basket under Article VI other amounts other than the amount of this AgreementConsolidated EBITDA referred to in clause (a) above.
Appears in 1 contract
Right to Cure. Notwithstanding anything (a) If Tenant shall at any time fail to perform its obligation in accordance with the provisions of this Lease and Tenant does not commence the cure of such failure within thirty (30) days of notice thereof (except in the event of emergencies), and thereafter diligently prosecute such cure to completion, then Landlord shall have the right, but shall not be obligated, to enter upon the Premises and to perform such obligation, notwithstanding the fact that no specific provision for such substituted performance by Landlord is made in this Lease with respect to such default. In performing such obligation, Landlord may make any payment of money or perform any other act. All sums so paid by Landlord (together with interest at the rate set forth in Section 4.3 hereof), and all necessary incidental reasonable third party costs and expenses in connection with the performance of any such acts by Landlord, shall be deemed to be additional rent under this Lease and shall be payable to Landlord immediately on demand. Landlord may exercise the foregoing rights without waiving any other of its rights or releasing Tenant from any of its obligations under this Lease.
(b) If Landlord shall have failed to perform any of Landlord’s covenants hereunder relating to the contrary contained Premises, including any Hazardous Materials indemnification obligations (Landlord and Tenant hereby agreeing, however, that Tenant shall have no self-help rights under this Lease with respect to the Common Areas of the Park unless Tenant is the sole tenant of the Park) within the time periods set forth herein and Landlord does not commence the cure of such failure within thirty (30) days of notice thereof to Landlord and Landlord’s mortgagee, so long as Landlord has provided Tenant with the identity and the address of such mortgagee (except in the event of emergencies), and thereafter diligently prosecute such cure to completion, then Tenant shall have the right, but not the obligation, to cure any such covenants for the account of Landlord. If Tenant shall undertake such performance, Landlord shall reimburse Tenant for all costs and expenses reasonably incurred by Tenant in connection with such performance within thirty (30) days after receipt of an invoice therefor from Tenant (together with any such back up documentation reasonably requested by Landlord). If Landlord fails to reimburse Tenant within said thirty (30) day period, then interest at the rate set forth in Section 7.014.3 hereof, shall accrue on any amounts due from Landlord hereunder until such costs have been reimbursed in full. If there remains any amounts unpaid by Landlord to Tenant hereunder after interest has commenced to accrue for at least thirty (30) days, then Tenant shall be entitled to offset the unreimbursed costs together with interest thereon as aforesaid, against twenty-five percent (25%) of the monthly Base Rent due hereunder until such costs due to Tenant hereunder have been reimbursed in full.
(c) Further, if any condition in the Premises constitutes an imminent threat to person or property or Tenant’s business operations and is Landlord’s responsibility under this Lease, Landlord shall remedy such condition or cause such condition to be remedied promptly after receipt of notice thereof (whether or not from Tenant), and in the event Landlord fails to do so, Tenant may elect to take action hereunder immediately with simultaneous notice to Landlord of Tenant’s action and if Tenant reasonably believes an emergency to exist, Tenant shall endeavor to give Landlord advance notice, but if such notice is not reasonable under the circumstances, shall give notice to Landlord as soon as practicable thereafter. In the event that Tenant remedies such imminent threat, Tenant shall be entitled to reimbursement from Landlord (and in the event that Landlord does not timely reimburse Tenant, to offset together with interest thereof, against the Borrower and its Restricted Subsidiaries fail to comply with the requirements of the Financial Performance Covenant as of the last day of any fiscal quarter of the Borrower, at any time after the beginning of such fiscal quarter until the expiration of the 10th Business Day following the date on which the financial statements with respect to such fiscal quarter (or the fiscal year ended Base Rent on the last day of such fiscal quarter) are required to be delivered pursuant to same terms and conditions as set forth in Section 5.01(a) or Section 5.01(b10.10(b), the Borrower or any Parent Entity thereof shall have the right to issue common Equity Interests or other Equity Interests (provided such other Equity Interests are reasonably satisfactory to the Administrative Agent) for cash or otherwise receive cash contributions to the capital of the Borrower as cash common Equity Interests or other Equity Interests (provided such other Equity Interests are reasonably satisfactory to the Administrative Agent) (collectively, the “Cure Right”), and upon the receipt by the Borrower of the Net Proceeds of such issuance that are not otherwise applied (the “Cure Amount”) pursuant to the exercise by the Borrower of such Cure Right such Financial Performance Covenant shall be recalculated giving effect to the following pro forma adjustment:
(a) Consolidated EBITDA shall be increased with respect to such applicable fiscal quarter and any four fiscal quarter period that contains such fiscal quarter, solely for the purpose of measuring the Financial Performance Covenant and not for any other purpose under this Agreement, by an amount equal to the Cure Amount;
(b) if, after giving effect to the foregoing pro forma adjustment (without giving effect to any portion of the Cure Amount on the balance sheet of the Borrower and its Restricted Subsidiaries with respect to such fiscal quarter only but with giving pro forma effect to any portion of the Cure Amount applied to any repayment of any Indebtedness), the Borrower and its Restricted Subsidiaries shall then be in compliance with the requirements of the Financial Performance Covenants, the Borrower and its Restricted Subsidiaries shall be deemed to have satisfied the requirements of the Financial Performance Covenant as of the relevant date of determination with the same effect as though there had been no failure to comply therewith at such date, and the applicable breach or default of the Financial Performance Covenant that had occurred shall be deemed cured for the purposes of this Agreement; and
(c) Notwithstanding anything herein to the contrary, (i) in each four consecutive fiscal quarter period of the Borrower there shall be at least two fiscal quarters in which the Cure Right is not exercised, (ii) during the term of this Agreement, the Cure Right shall not be exercised more than five times, (iii) the Cure Amount shall be no greater than the amount required for purposes of complying with the Financial Performance Covenant and any amounts in excess thereof shall not be deemed to be a Cure Amount and (iv) the Lenders shall not be required to make a Loan or issue, amend, renew or extend any Letter of Credit unless and until the Borrower has received the Cure Amount required to cause the Borrower and the Restricted Subsidiaries to be in compliance with the Financial Performance Covenants. Notwithstanding any other provision in this Agreement to the contrary, the Cure Amount received pursuant to any exercise of the Cure Right shall be disregarded for purposes of determining the Available Amount, the Available Equity Amount, any financial ratio-based conditions or tests, pricing or any available basket under Article VI of this Agreement.
Appears in 1 contract
Samples: Lease Agreement (Green Mountain Coffee Roasters Inc)