Permitted Commodity Hedge Agreements definition

Permitted Commodity Hedge Agreements means crude oil, natural gas, or other hydrocarbon Commodity Hedge Agreements; provided that (i) such agreement is in form and substance and with a Person acceptable to the Lender, in its discretion, (ii) each transaction under such agreement must also be approved by the Lender, (iii) such agreements shall not be entered into with respect to Borrowers’ Borrowing Base Oil and Gas Properties constituting more than 80% of the present value of estimated future net revenues, computed using a discount factor of 9%, of all proved developed producing Borrowing Base Oil and Gas Properties, and (iv) that the floor prices in such agreements are not less than the prices used by the Lender in its most recent Borrowing Base determination,

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Permitted Commodity Hedge Agreements means (i) the Initial Secured Commodity Hedge Agreement, the Permitted Secured Affiliate Agreements, the Fuel Supply and Energy Agreement to which ▇▇▇▇▇▇ ▇▇▇▇▇▇ Texas Pipeline, LLC is a party on the Closing Date, and (ii) any other Secured Commodity Hedge Agreement or other Commodity Hedge Agreement, in each case entered into after the Closing Date up to the rated capacity of the applicable Project(s) on a non-speculative basis with a Permitted Commodity Hedge Counterparty in compliance with Section 5.22(iii)(D) (if applicable)).

Permitted Commodity Hedge Agreements means any Commodity Hedge Agreement entered into from time to time with respect to a Project by the applicable Project Company, entered into not for speculative purposes and only with respect to any period during which no PPA with respect to such Project is in effect, provided that the following conditions are satisfied: (i) the collateral requirements under such Permitted Commodity Hedge Agreement can be satisfied by the issuance of Letters of Credit pursuant to the LC Facility or any Replacement Credit Facilities (including any Incremental LC Facility), (ii) there is sufficient availability at the time such Permitted Commodity Hedge Agreement is entered into under the LC Facility or any Replacement Credit Facilities (including any Incremental LC Facility) to satisfy such additional collateral requirements and (iii) the obligations of the applicable Project Company thereunder shall not be secured by any of the Collateral.

Examples of Permitted Commodity Hedge Agreements in a sentence

The Borrower currently has a $384,000,000 “basket” of permitted first lien capacity, in the aggregate, available for posting letters of credit to support Permitted Commodity Hedge Agreements or working capital obligations under section 5.02(b)(iii) of the Credit Agreement.
Letters of Credit may be issued solely in support of any Co-Borrower’s collateral posting obligations under any Permitted Commodity Hedge Agreements; provided, however, that if any Incremental LC Commitments are obtained then Letters of Credit in an amount equal to such Incremental LC Commitments shall be issued solely in support of PowerCo’s collateral posting obligations in connection with a bid in the PJM Capacity Auction (and for no other purpose).
No Company Entity will incur any Hedging Obligations or enter into any foreign currency trading or any speculative transactions, except Permitted Commodity Hedge Agreements.
Borrower will not, and will not permit any Loan Party to, enter into any Hedge Agreement, other than (i) Permitted Commodity Hedge Agreements and (ii) Hedge Agreements not relating to commodities entered into in the ordinary course of business to hedge or mitigate risks to which the Loan Parties are exposed in the conduct of their business or the management of their liabilities.
No Subsidiary Guarantor shall conduct business other than (A) the ownership, operation, maintenance, administration and financing of its Project as permitted by the Transaction Documents, (B) the execution, delivery and performance of the relevant Financing Documents to which it is a party and (C) activities necessarily incidental to the foregoing (including entering into and performing their obligations under Permitted Commodity Hedge Agreements).

More Definitions of Permitted Commodity Hedge Agreements

Permitted Commodity Hedge Agreements means crude oil, natural gas, or other hydrocarbon Commodity Hedge Agreements; provided that (i) such agreements are in form and substance and with a Person acceptable to the Lender, in its discretion, (ii) each transaction under such agreement must also be approved by the Lender, (iii) that the floor prices in such agreements are not less than the prices used by the Lender in its most recent Borrowing Base determination, and (iv) such agreements comply with the requirements set forth Section 6.17.