Examples of Rate Cap Agreement in a sentence
Entry by the Issuer into the Interest Rate Cap Agreement does not completely eliminate the interest rate risk related to the Notes.
The Rate Cap Agreement shall have an initial notional amount equal to the then outstanding principal balance of the Loan [and shall be for a term not less than the remaining term of the Loan][and shall be for a term not less than (i) the remaining term of the Loan (not including any extension option) if entered into prior to the initial Maturity Date and (ii) the remaining term of the applicable extension period if entered into during an extension period].
In the event that any payment made by the Interest Rate Cap Provider under the Interest Rate Cap Agreement is subject to any withholding or deduction for or on account of tax as a result of a change in law and consequently the Interest Rate Cap Agreement is terminated, this may adversely impact the ability of the Issuer to meet its obligations under the Notes in full.
On or before the Closing Date, the Issuer will enter into an Interest Rate Cap Agreement with the Interest Rate Cap Provider.
In June 2016, the Company entered into an interest rate cap agreement, which became effective July 1, 2016, to hedge cash flows associated with interest rate fluctuations on variable rate debt, with a termination date of March 31, 2020 ("2016 Interest Rate Cap Agreement").