Hedged Eligible Inventory means the future fixed sales price (equal to the Marked-to-Market Basis determined pursuant to clause (a) of that definition), net of storage and transportation costs, of Eligible Inventory which has been (a) hedged on the IntercontinentalExchange, the Chicago Mercantile Exchange, the New York Mercantile Exchange, or the Chicago Board of Trade or (b) covered by swap contracts with investment grade companies.
Hedged Eligible Inventory means natural gas owned by a Co-Borrower (a) which has been presold in a manner resulting in, or which at the time of delivery, will result in, a Qualified Account, or (b) which has been hedged by a NYMEX contract or an over-the-counter contract acceptable to Agent, which NYMEX contract is subject to a tri-party account control agreement with Agent and which natural gas, upon such purchase by a Co-Borrower, shall qualify as Eligible Inventory. Such Hedged Eligible Inventory shall be valued at current market (as referenced by a public source acceptable to the Agent in its sole discretion) net of any setoff, counterclaim or netting. Such Hedged Eligible Inventory shall not include “virtual storage”, “winter bundled sales” or future purchase commitments made during bid week prior to the physical delivery thereof.
Examples of Hedged Eligible Inventory in a sentence
Use the proceeds of the Credit Extensions only to finance or refinance the purchase by the Borrower of Hedged Eligible Inventory.
If at any time the outstanding principal balance of the Loans exceed the sum of (i) Hedged Eligible Inventory plus (ii) the outstanding amount of Accounts resulting from the sale of such Hedged Eligible Inventory (without duplication), Borrower shall within one Business Day prepay the principal of the Loans in an amount at least equal to such excess.
Each such Letter of Credit shall by its terms identify the specific LC-Backed Purchase Contracts to which it relates and shall automatically reduce upon receipt by the beneficiary thereof of any payments made by Borrower to such beneficiary for such Hedged Eligible Inventory referencing such Letter of Credit.
Any Loans used to purchase Hedged Eligible Inventory under LC-Backed Purchase Contracts shall be used by Borrower on the Funding Date to pay the sellers thereunder, with reference in each case to the outstanding Letter of Credit issued with respect to such LC-Backed Purchase Contract, and Borrower shall provide documentation to Administrative Agent with respect thereto.
Each Letter of Credit shall be used to secure the Cash and Carry Purchase by Borrower of Hedged Eligible Inventory pursuant to an LC-Backed Purchase Contract and be substantially in the form of Exhibit E hereto or such other form and terms as shall be acceptable to LC Issuer in its sole and absolute discretion.
More Definitions of Hedged Eligible Inventory
Hedged Eligible Inventory means Eligible Inventory with respect to which the value has been effectively hedged on a net hedge basis for delivery within the next 180 days by either (i) a NYMEX contract or an over-the-counter contract, or (ii) a contract for physical delivery to a counterparty on a written list of counterparties provided by the Borrower from time to time to the Administrative Agent (and updated at least once per Fiscal Quarter) but excluding any such counterparties on such written list that have been affirmatively rejected by the Administrative Agent in its reasonable discretion; provided, however, that Petroleum Products that would constitute Hedged Eligible Inventory except that such inventory has been hedged for delivery within the next 365 days but more than 180 days out (the “Long Term Hedged Inventory”) shall be included as Hedged Eligible Inventory to the extent such Long Term Hedged Inventory does not exceed 25% of the total Hedged Eligible Inventory.
Hedged Eligible Inventory means Eligible Inventory with respect to which the price risk has been (a) hedged for delivery within the next 190 days by either
Hedged Eligible Inventory means Eligible Inventory, which has been (a) hedged on the New York Mercantile Exchange arranged through brokers approved by Administrative Agent and with whom a three party agreement among Borrower, Administrative Agent and such broker has been entered in form and substance satisfactory to Administrative Agent or (b) otherwise hedged in a manner satisfactory to Majority Lenders. The value of Hedged Eligible Inventory shall be the volume of the inventory times the prices fixed in such hedge, minus all storage, transportation and other applicable costs.
Hedged Eligible Inventory means Petroleum Products (excluding all Permian Excluded Inventory and Commodity Intermediary Subject Inventory) purchased or stored, or scheduled to be purchased or stored in the following month, by any Borrower, which have been hedged by either (i) a NYMEX contract or an Intercontinental Exchange contract which constitutes a Swap Contract, which Swap Contract is pursuant to a segregated account subject to a Tri-Party Agreement and not subject to any setoff, counterclaim or netting, or (ii) an over-the-counter contract or contract for physical delivery, and which Petroleum Products, in either such case, upon such purchase or storage by such Borrower, shall qualify as Eligible Inventory.
Hedged Eligible Inventory means, at the time of determination thereof, all of the Borrower’s Eligible Inventory valued on a marked-to-market basis, pursuant to a methodology acceptable to the Administrative Agent, and adjusted to reflect differentials and pricing information provided by Platts (or another published industry index acceptable to the Administrative Agent) with respect to which outright price risk shall have been hedged in a manner satisfactory to the Administrative Agent and, (a) in the case of such xxxxxx placed through a recognized commodities exchange, subject to the execution of a tri-party Security Agreement with the Collateral Agent and the related commodities broker in form and substance acceptable to the Administrative Agent granting a first priority perfected security interest in the related commodities or futures hedge account to the Collateral Agent (subject only to Permitted Liens), and (b) in the case of such xxxxxx purchased on an over-the-counter basis, subject to the execution of other documentation reasonably acceptable to the Administrative Agent granting a first priority perfected security interest in the related over-the-counter xxxxxx to the Collateral Agent (subject only to Permitted Liens). No hedge contracts entered into by, or on behalf of, the Borrower shall contain any provision preventing the assignment of such contracts to the Collateral Agent (or requiring the consent of any Person other than the applicable counterparty to permit such assignment unless such consent shall have been obtained) and shall not include provisions that allow the cancellation of the contract upon the bankruptcy, either voluntary or involuntary, or insolvency of Borrower, unless (i) such right of cancellation applies to both parties of the contract and (ii) the contract provides for means to calculate the xxxx-to-market liquidation value of such contract and the payment of such amount to the party it is owed by the other party to such contract.
Hedged Eligible Inventory means natural gas, crude oil, petroleum products or natural gas liquids owned by SEG or AES (a) which has been presold in a manner resulting in, or which at the time of delivery, will result in, a Qualified Account, or (b) which has been hedged by a NYMEX contract or an over-the-counter contract acceptable to Agent, which NYMEX contract is subject to a tri-party account control agreement with Agent and which natural gas, crude oil, petroleum products or natural gas liquids, upon such purchase by a Co-Borrower, shall qualify as Eligible Inventory. Such Hedged Eligible Inventory shall be valued at current market (as referenced by a public source acceptable to the Agent in its sole discretion) net of any setoff, counterclaim or netting. Such Hedged Eligible Inventory shall not include “virtual storage” or “winter bundled sales”.
Hedged Eligible Inventory means Petroleum Products purchased or stored, or scheduled to be purchased or stored in the following month, by any Borrower, which have been hedged by either (i) a NYMEX contract or an Intercontinental Exchange contract which constitutes a Swap Contract, which Swap Contract is pursuant to a segregated account subject to a Tri-Party Agreement and not subject to any setoff, counterclaim or netting, or (ii) an over-the-counter contract or contract for physical delivery, and which Petroleum Products, in either such case, upon such purchase or storage by such Borrower, shall qualify as Eligible Inventory.