Examples of Credit Spread Adjustment in a sentence
The credit facility bears interest on drawn funds at rates of Term Secured Overnight Financing Rate (“Term SOFR”) + Credit Spread Adjustment (“CSA”) + 1.45% to Term SOFR+CSA+2.50% (previously LIBOR+1.75% to LIBOR+2.75%), depending on the Company’s net leverage ratio.
The amended Credit Facility bears interest on drawn funds at rates of Term Secured Overnight Financing Rate (“Term SOFR”)+ Credit Spread Adjustment (“CSA”) + 1.45% to Term SOFR+CSA+2.50% depending upon the Company’s net leverage ratio, reduced from LIBOR+1.75% to LIBOR+2.75%, previously.
Proposers may also provide Benchmark Rates for alternate forms of financing and must do so in order to be entitled to a Credit Spread Adjustment under the Agreement.
On February 16, 2023, the Company received commitments from the lenders of the revolving Credit Facility to, upon completion and execution of the First Amendment to the Fourth Amended and Restated Credit Agreement, extend the term by one year to April 2028 and reduce the Credit Spread Adjustment.
At the same time, the Company also amended the benchmark rate of the U.S. dollar revolving credit facility and the U.S. dollar Term A Loans from U.S. dollar LIBOR to U.S. dollar SOFR plus a 10 basis point Credit Spread Adjustment.