Common use of Voluntary Prepayments of Other Indebtedness Clause in Contracts

Voluntary Prepayments of Other Indebtedness. (a) Except as provided in Section 6.13(b), neither the Company nor any of its Domestic Subsidiaries shall make any voluntary prepayment of principal of or interest on any Financing Debt (other than the Obligations) or make any voluntary redemptions or repurchases of Financing Debt (other than the Obligations), except that the Company and its Domestic Subsidiaries may refinance Financing Debt to the extent permitted by Section 6.06. (b) Notwithstanding Section 6.13(a), the Company and any of its Domestic Subsidiaries may make voluntary prepayments of principal of or interest on, or make voluntary redemptions or repurchases of (collectively, “Prepayments”), the Approved Public Debt to the extent permitted by the terms thereof, provided that (i) no Event of Default exists immediately before and after giving effect to such Prepayment, (ii) in the case of the Company 2010 Notes such Prepayments shall be permitted only (x) after the Company 2008 Notes have been paid in full (provided, however, that the Company shall be permitted to effect the Prepayment of the Company 2010 Notes of up to an aggregate principal amount of $20,000,000 prior to the Prepayment in full of the Company 2008 Notes)and (y) if after giving effect thereto the Consolidated Leverage Ratio is less than 4.50 and (iii) in the case of the Company 2013 Notes such Prepayments shall be permitted only (x) after the Company 2010 Notes have been paid in full and (y) if after giving effect thereto the Consolidated Leverage Ratio is less than 4.50.

Appears in 4 contracts

Samples: Credit Agreement (Buckeye Technologies Inc), Credit Agreement (Buckeye Technologies Inc), Credit Agreement (Buckeye Technologies Inc)

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