Common use of Term Loan Conversion Clause in Contracts

Term Loan Conversion. (a) Upon the terms and subject to the conditions hereinafter set forth, each of the Banks severally agrees to permit the Borrower to elect a one-time conversion of a portion of the Revolving Credit Commitment in the aggregate principal amount of up to Twenty Five Million Dollars ($25,000,000) (the “Term Loan Principal Amount”) into a term loan (the “Term Loan”)and to borrow the Term Loan Principal Amount and/or convert outstanding Revolving Credit Loans in an aggregate principal amount not to exceed the Term Loan Principal Amount into a Term Loan at any time prior to the first anniversary of the Restatement Date (the date of such conversion and/or borrowing, the “Conversion Date”), in accordance with such Bank’s Pro Rata Share of Revolving Credit Commitment, provided that (i) no Default or Event of Default then exists, (ii) the Banks shall have received payment of any interest due on the then outstanding Revolving Credit Loans, if any are to be converted hereunder, and (iii) the Banks shall have received the Term Notes, duly executed by the Borrower, in accordance with Section 2.07(b). Upon any such conversion, the term of the then outstanding Revolving Credit Loans, if any, that have been converted shall be deemed to have been extended and the payment terms thereof modified, as provided herein. Any Term Loan shall not be deemed to be new indebtedness hereunder. (b) During the term of the Term Loan, amounts repaid or prepaid in respect of such Term Loan may not be reborrowed as a Term Loan, but such amounts may be reborrowed as a Revolving Credit Loan under the Revolving Credit Commitment in accordance with the terms and conditions set forth herein with respect to the Revolving Credit Loans.

Appears in 3 contracts

Samples: Credit Agreement (Hampshire Group LTD), Credit Agreement (Hampshire Group LTD), Credit Agreement (Hampshire Group LTD)

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