Breakage Cost means the replacement cost to the Bank resulting from a Prepayment as determined by the Bank.
Breakage Cost means any loss or cost that the Bank notifies the Borrower has been incurred by the Bank as a result of (i) any payment of the principal of the Loan at a time other than as scheduled hereunder (whether voluntarily, as a result of acceleration, demand or otherwise), or (ii) the Borrower’s failure to take any amount of principal of the Loan on the date agreed upon. Breakage Costs include, but are not limited to, any loss or cost (including loss of profit or margin) connected with the Bank’s re-employment of the amount so prepaid or of those funds acquired by the Bank to fund the Loan not taken on the agreed upon date and any costs arising from the termination or modification of any interest rate swap or option, cross currency swap or option, or any other funding contract or arrangement entered into for purposes of funding the Loan or any portion thereof or setting the rate thereon.
Examples of Breakage Cost in a sentence
You are strongly advised to discuss potential Breakage Cost with us in advance of requesting an early termination of a Transaction.
If you wish to terminate a Transaction before its Maturity Date, Breakage Cost may arise.
Example - Breakage Cost calculation for an Interest Rate Swap (“IRS”): If you are the fixed rate payer under an IRS (with a constant notional amount) the Breakage Cost would be determined by: The notional amount of the IRS x the remaining term of the fixed interest period (expressed in years) x difference between the interest rate available to the Bank for the remaining term of the IRS and your fixed interest rate for that period.
Conversely, if the fixed rate at the time of breakage is 3.75%, the Bank will have to make a payment of Breakage Cost to you in the amount of €2,500 (€1,000,000 x 1 year x 0.25% = €2,500).
If you wished to terminate this IRS in full after two years and the fixed interest rate available in the market to the Bank is then 1.50%, you will be obliged to make a payment of Breakage Cost to the Bank in the amount of £20,000 which is calculated (£1,000,000 x 1year x 2.00% = £20,000).
More Definitions of Breakage Cost
Breakage Cost means the sum of money we charge you as a result of a termination of a Transaction before the Maturity Date. This cost
Breakage Cost shall have the meaning set forth in Section 2.11.
Breakage Cost as defined in Section 9.1 of the Funding Agreement.
Breakage Cost. For any Lender with respect to any Breakage Event, any costs actually incurred by such Lender in connection with such Breakage Event, which shall be calculated as the difference (as reasonably determined by such Lender and set forth in a certificate of such Lender delivered to the Borrower) of (a) such Lender’s cost of obtaining funds for the LIBOR Rate Loan that is the subject of such Breakage Event for the period from the date of such Breakage Event to the last day of the Interest Period in effect (or that would have been in effect) for such LIBOR Rate Loan, minus (b) the amount of interest realized by such Lender in redeploying the funds returned or not utilized by reason of such Breakage Event for such period (or, if such funds are not so redeployed, the amount of interest likely to have been realized in the eurodollar interbank market).
Breakage Cost means any amount reasonably necessary to compensate the Lender for costs or expenses incurred by the Lender in connection with the payment or acceleration of the Loan, in whole or in part, whether voluntarily or involuntarily , on a date which is not the last date of the then applicable Interest Period for the portion of the Loan being paid, including (without limitation) any loss incurred in obtaining, liquidating or employing deposits from third parties.
Breakage Cost means all losses, costs, expenses and liabilities incurred, suffered or sustained by a Hedging Counterparty under a Hedging Agreement (and/or by the [***] Facilities Provider under the [***] Existing FX Facility, as the case may be) as invoiced by that Hedging Counterparty (and/or the [***] Facilities Provider, as the case may be) to ASM as a consequence of any failure by ASM to pay on the due date (or an election to defer or roll over or pre pay) the amount of the periodic payment scheduled to fall due and payable under (and as set out in) the Hedging Agreement (and/or the [***] Existing FX Facility, as the case may be) but excluding, for the avoidance of doubt, all or any part of the amount of the periodic payment falling due under the Hedging Agreement (and/or the [***] Existing FX Facility, as the case may be) which is not paid or is otherwise deferred or rolled over on such scheduled due date for payment under the Hedging Agreement;
Breakage Cost means any consent fee, change of control premium, termination fee, prepayment penalty, make-whole payment, “breakage” cost or similar payment or related cost, including the fees and expenses of the attorneys to the trustee, lenders or agents to the extent payable under the applicable indenture, credit agreement or credit facility, associated with the pay-off, unwinding, redemption, satisfaction or defeasance of (a) any and all Funded Debt, including (i) the Company Notes in accordance with the applicable indenture and (ii) the amounts under the credit agreements and facilities of the Company or any of its Subsidiaries and (b) any and all obligations under commodity swap agreements, commodity cap agreements, interest rate cap agreements, interest rate swap agreements, foreign currency exchange agreements and other similar agreements, in the case of each of clauses (a) and (b), outstanding or in existence as of the date of this Agreement and set forth in Section 1.1(a) of the Company Disclosure Letter.