Examples of External Permitted Debt in a sentence
The Controlling Class at a given time (which while any External Permitted Debt remains outstanding, will include the External Creditors in respect of the same) will be entitled to determine the remedies to be exercised under the Security Documents if events of default occur thereunder and to exercise certain other voting rights.
There can be no assurance that the distributions on, or the sale proceeds of, the Collateral received and amounts received under the Secured Hedging Transactions will be sufficient to make payments on the VF Notes or on any Class of Notes, after making payments on more senior Classes of Notes, more senior External Permitted Debt and certain other required amounts to other creditors including External Creditors ranking senior to or pari passu with such VF Notes or such Class.
In the event that the commitments are terminated or any conditions to borrowing under either of the VF Notes or any other External Permitted Debt Document have not been met, the Issuer may experience a liquidity crunch and lack cash to meet its current expenses and obligations in respect of Permitted Indebtedness.
In addition to the commitments under the VF Notes, the Issuer from time to time may obtain new commitments for loans under any External Permitted Debt Documents.
The Issuer's ability to meet its obligations under the VF Notes, the Notes or other External Permitted Debt Documents will depend upon the future performance of the Issuer Investments managed by the Investment Manager.
Any Advances made under the VF Notes will be subject to satisfaction of certain conditions and any commitments to lend under any other External Permitted Debt Document will likely be subject to satisfaction of certain conditions.
In the event that the commitments are terminated under the VF Notes or any other External Permitted Debt Document, the Issuer could lose borrowing capacity due to the disposition of Issuer Investments against which such borrowing could be secured.
Depending on the terms and conditions of any such future additional Notes or External Permitted Debt, the Issuer may be more or less leveraged than the Issuer would be with the Initial Borrowing Arrangements alone.
The terms of any such additional Notes or External Permitted Debt may provide for a higher or lower interest rate than the interest rate under the Initial Borrowing Arrangements.
The issue of such additional Notes or the incurrence of such External Permitted Debt will result in interest expense and other costs incurred in connection with such financing(s) that may not be covered by the net interest income, dividends and appreciation of Issuer Investments.The use of leverage will increase the volatility of the Net Asset Value from time to time.