Recurring Revenue Loan definition

Recurring Revenue Loan means a Collateral Loan that meets each of the following criteria as of the date of acquisition by the Borrower, subject to waiver by the Administrative Agent in accordance with the definition of Eligible Collateral Loan hereto (for the avoidance of doubt, if any Collateral Loan does not meet the below listed conditions, but such failure is waived by the Administrative Agent, such Collateral Loan shall still be subject to the Advance Rates, Concentration Limitations and Revaluation Events applicable to Recurring Revenue Loans set forth herein):

Recurring Revenue Loan means an Eligible Loan Asset that is underwritten based on the Recurring Revenue of the Obligor, as determined by the Administrative Agent in its sole discretion after consultation with the Servicer and designated as such in the related Approval Notice.

Recurring Revenue Loan. A Loan that (i) has a related Obligor organized under the law of the United States and is denominated in Dollars, (ii) is secured by a pledge of collateral, which security interest is validly perfected and first priority under Applicable Law, (iii) has a related Obligor that is principally engaged in an enterprise software business that derives revenue primarily under contractual agreements and/or selling software as a service, (iv) is structured or underwritten based on a multiple of the related Obligor’s Recurring Revenue, and (v) that contains a Recurring Revenue Loan Covenant Flip Scheduled Date (which date is no later than the 3 year anniversary of the date on which the Borrower acquired such Loan; provided that the Administrative Agent may re-designate such Loan as a First Lien Loan or a Second Lien Loan in its sole discretion if the recurring revenue covenants in the related Underlying Instruments are replaced (whether by amendment or by operation of such Underlying Instruments) with traditional cash flow leverage lending covenants (such as those based on total leverage, senior leverage, and interest coverage) (a “Recurring Revenue Reclassification Date”). For any Loan subject to a Recurring Revenue Reclassification Date, any references to the Senior Leverage Ratio and Interest Coverage Ratio as of the date on which such Loan was acquired by the Borrower shall be deemed to mean such ratios determined by the Administrative Agent in its sole discretion as of the Recurring Revenue Reclassification Date.

Examples of Recurring Revenue Loan in a sentence

• With respect to any Recurring Revenue Loan, the Liquidity for such Loan on the date such Loan (i) was first included as part of the Collateral or (ii) if applicable, was most recently assigned a new Assigned Value by the Administrative Agent pursuant to clause (a)(iii) of the definition of Assigned Value after the occurrence of a Value Adjustment Event, as set forth in the applicable Assigned Value Notice with respect to such Loan.

• With respect to (a) any Broadly Syndicated Loan, 65%, (b) any Middle Market Loan, 60%, (c) any Recurring Revenue Loan, 50%, and (d) any Second Lien Loan, 25%.

• If such Recurring Revenue Loan is subject to a subordinated lien it shall be treated as a Second Lien Loan for purposes of determining the Advance Rate and eligibility of such Collateral Loan.

• Liability Rating Class Senior Secured Loan Senior Secured Bond, Senior Secured Note and Senior Secured Recurring Revenue Loan Asset Higher Qualified First Lien Loan Qualified First Lien Loan Second Lien, Non-Senior Secured Recurring Revenue Loan Asset and Senior Unsecured Subordinate AA (sf) 49.00 % 45.25 % 42.00 % 37.00 % 25.75 % 7.50 % Numbers in italics correspond to the recovery rates for Senior Secured Covenant-Lite Loans.

• With respect to any Recurring Revenue Loan for any Relevant Test Period, either (1) the amount of (i) Unrestricted Cash and Cash Equivalents plus (ii) any unfunded revolving commitments for which such Obligor can satisfy the conditions to draw any such amounts or (2) upon the request of the Borrower and approved in writing by the Administrative Agent (which may be approved via email), the meaning of “Liquidity” or any comparable definition in the applicable Underlying Instruments.

More Definitions of Recurring Revenue Loan

Recurring Revenue Loan means a Collateral Loan (i) the extensions of credit under which, or a Maintenance Covenant applicable to which, is calculated on the basis of “recurring revenue” for a stated period rather than EBITDA or (ii) that, at the time of acquisition, has a negative LTM EBITDA or a Total Debt / EBITDA Ratio greater than 7.50 to 1:00; provided that, if on any date of determination after the date of acquisition such Collateral Loan has a positive EBITDA for two (2) consecutive quarters or a Total Debt / EBITDA Ratio less than 7.50 to 1:00, the Administrative Agent may, upon notice to the Borrower and Services Provider, reclassify such Collateral Loan so that it shall cease to be a Recurring Revenue Loan.

Recurring Revenue Loan means a First Lien Loan that (i) is underwritten to Recurring Revenue, (ii) requires the Obligor to comply with a maximum Recurring Revenue Multiple or minimum Recurring Revenue financial covenant, (iii) at the time of origination of the Loan, does not include and would not customarily be expected to include (as determined by the Collateral Manager) a financial covenant based on “debt to EBITDA”, “debt to EBIT” or a similar multiple of debt to operating cash flow and (iv) is not subordinate to a working capital loan.

Recurring Revenue Loan means any Loan Asset that otherwise satisfies all of the requirements set forth in the definition of “First Lien Loan” except that (i) it is underwritten based on the Recurring Revenue of the Obligor, as determined by the Administrative Agent, in consultation with the Servicer, and designated as such in the related Approval Notice, and (ii) neither clause (e) nor clause (f) of the definition of “First Lien Loan” is satisfied with respect to such Loan Asset.

Recurring Revenue Loan means any Loan Asset that is structured based on a multiple of the related Obligor’s Revenue.

Recurring Revenue Loan means a Loan that meets each of the following criteria:

Recurring Revenue Loan means a Senior Secured Loan, a Last-Out Loan, or a Unitranche Loan that (i) is to an enterprise software data or technology-enabled company underwritten to recurring revenue, (ii) has a Loan-to-Value Ratio of less than 50%, and (iii) does not include and would not customarily be expected to include a financial covenant based on “debt to EBITDA”, “debt to EBIT” or a similar multiple of debt to operating cash flow; provided, that any such Collateral Loan which includes a financial covenant package that converts at a future test period to covenants based on “debt to EBITDA”, “debt to EBIT” or a similar multiple of debt to operating cash flow shall, at the Borrower’s election, cease to constitute a Recurring Revenue Loan and shall convert to a Senior Secured Loan if it otherwise satisfies the definition thereof. If such Recurring Revenue Loan is subject to a subordinated lien it shall be treated as a Second Lien Loan for purposes of determining the Advance Rate and eligibility of such Collateral Loan.

Recurring Revenue Loan. A Loan underwritten based on the Obligor’s revenues, whether contractual or realized.