Applicable Margins Clause Samples
The "Applicable Margins" clause defines the specific interest rate margin or premium that will be added to a base rate in a financial agreement, such as a loan or credit facility. This margin may vary depending on factors like the borrower's credit rating, the type of loan, or the period during which the loan is outstanding. For example, a higher margin might apply if the borrower's financial condition deteriorates, or different margins may be set for different tranches of a loan. The core function of this clause is to clearly establish how much extra interest the borrower will pay above the base rate, ensuring transparency and predictability in the calculation of interest costs.
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Applicable Margins. The ABR Applicable Margin and the LIBOR Applicable Margin to be used in calculating the interest rate applicable to different Types of Advances shall vary from time to time in accordance with the long-term unsecured debt ratings from ▇▇▇▇▇’▇, and Fitch of the General Partner and the Borrower. In the event the General Partner and the Borrower have different ratings, the rating of the higher rated entity shall be used. In the event the rating agencies are split on the rating for the higher rated entity, the lower rating for such entity shall be deemed to be the applicable rating (e.g., if the higher rated entity’s ▇▇▇▇▇’▇ debt rating is Baa1, and its Fitch’s rating is BBB, then the Applicable Margins shall be computed based on the Fitch rating), and the Applicable Margins shall be adjusted effective on the next Business Day following any change in the higher rated entity’s ▇▇▇▇▇’▇ debt rating, and/or Fitch’s debt rating, as the case may be. The applicable debt ratings and the Applicable Margins are set forth in the table attached as Exhibit A. In the event that Fitch or ▇▇▇▇▇’▇ shall discontinue their ratings of the REIT industry, the General Partner or the Borrower, a mutually agreeable substitute rating agency (or two mutually agreeable substitute agencies if both existing rating agencies discontinue such ratings) shall be selected by the Required Lenders and the Borrower. If the Required Lenders and the Borrower cannot agree on a substitute rating agency or substitute rating agencies within thirty (30) days after such discontinuance, or if Fitch and ▇▇▇▇▇’▇ shall discontinue their ratings of the REIT industry, the Borrower, or the General Partner, the Applicable Margin to be used for the calculation of interest on Advances hereunder shall be the highest Applicable Margin for each Type. If a rating agency downgrade or discontinuance results in an increase in the ABR Applicable Margin, the LIBOR Applicable Margin, or Facility Fee Rate and if such downgrade or discontinuance is reversed and the affected Applicable Margin is restored within ninety (90) days thereafter, at the Borrower’s request, the Borrower shall receive a credit against interest next due the Lenders equal to interest accrued from time to time during such period of downgrade or discontinuance and actually paid by the Borrower on the Advances at the differential between such Applicable Margins, and the differential of the Facility Fee paid during such period of downgrade. If a rating agency u...
Applicable Margins. Initially, and continuing through the day immediately preceding the first Adjustment Date occurring on or after [DATE SIX MONTHS AFTER CLOSING DATE], 2003, on which Borrower demonstrates that a change in the Base Rate Margin and the LIBOR Margin is warranted and requests such change in writing, (i) the applicable Base Rate Margin and LIBOR Margin shall be 2.750% and 3.750% per annum, respectively, for the Revolving Loans and the Term A Loan and (ii) 3.0% and 4.0% per annum, respectively, for the Term B Loan. Commencing on such Adjustment Date, the applicable Base Rate Margin and LIBOR Margin shall be for each Calculation Period the applicable per annum percentage set forth in the pricing tables below opposite the Total Leverage Ratio of Borrower, ona consolidated basis for Borrower and its Subsidiaries; provided, that effective (a) upon the occurrence of an Event of Default and until such Event of Default is cured or waived or (b) in the event that Administrative Agent shall not receive the financial statements and compliance certificate required pursuant to Subsections 4.6(A), 4.6(B) and 4.6(C) when due, from such due date and until the fifth (5th) Business Day following Administrative Agent’s receipt of such overdue financial statements and compliance certificate (and in the event a decrease in the applicable margin is then warranted, receipt of the Borrower’s written request to decrease such margin), the applicable Base Rate Margin and LIBOR Rate Margin shall be 2.750% and 3.750% per annum, respectively, for the Revolving Loans and the Term A Loan and 3.0% and 4.0% per annum, respectively, for the Term B Loan. Revolving Loans and Term A Loan Total Leverage Ratio Base Rate Margin LIBOR Margin Total Leverage Ratio Base Rate LIBOR Margin Margin
Applicable Margins. The interest due hereunder with respect to the Advances shall vary from time to time and shall be determined by reference to the Type of Advance and the then-current Leverage Ratio. Any such change in the Applicable Margin shall be made on the fifth (5th) day subsequent to the date on which the Administrative Agent receives a compliance certificate pursuant to Section 6.1(v) with respect to the preceding fiscal quarter of Borrower, provided that the Administrative Agent does not object to the information provided in such certificate. Such changes shall be given prospective effect only, and no recalculation shall be done with respect to interest or Facility Letter of Credit Fees accrued prior to the date of such change in the Applicable Margin. If any such compliance certificate shall later be determined to be incorrect and as a result a higher Applicable Margin should have been in effect for any period, Borrower shall pay to the Administrative Agent for the benefit of the Lenders all additional interest and fees which would have accrued if the original compliance certificate had been correct, as shown on an invoice to be prepared by the Administrative Agent and delivered to Borrower, on the next Payment Date following delivery of such invoice. The per annum Applicable Margins that will be either added to the Alternate Base Rate to determine the Floating Rate or added to LIBOR Base Rate (as adjusted for any Reserve Requirement) to determine the LIBOR Rate for any LIBOR Interest Period shall be determined as follows: ≤ 50% 3.25% 2.25%
Applicable Margins. Both the ABR Applicable Margin and the LIBOR Applicable Margin to be used in calculating the interest rate applicable to different Types of Advances shall vary from time to time in accordance with the higher of the then-applicable Moody's debt rating and S&P's debt rating, as the case may be, for the long-term unsecured debt of Chateau Parent. The Applicable Margins shall be adjusted effective on the next Business Day following any change in Chateau Parent's Moody's debt rating and/or S&P's debt rating, as the case may be. Borrower shall provide prompt notice to Administrative Agent of any rating change and promptly upon receipt of such notice Administrative Agent shall promptly notify the Lenders, but the determination of the Applicable Margin shall not be dependent on the giving of such notice. The applicable debt ratings and the Applicable Margins are set forth in the following tables: --------------------------------------------------------------------------------------- Pricing Grid For Period From Closing Through First 4 Months --------------------------------------------------------------------------------------- Rating: At least At least Less than S&P and ▇▇▇▇▇'▇ Baa2 or BBB Baa3 or BBB- Baa3 and BBB- ("Level I Status") but lower than Level I Status --------------------------------------------------------------------------------------- ABR Applicable Margin 20 40 65 (in basis points) --------------------------------------------------------------------------------------- LIBOR Applicable Margin 120 140 165 (in basis points) --------------------------------------------------------------------------------------- --------------------------------------------------------------------------------------- Pricing Grid For Period From Beginning of Month 5 Through Maturity --------------------------------------------------------------------------------------- Rating: At least At least Less than S&P and ▇▇▇▇▇'▇ Baa2 or BBB Baa3 or BBB- Baa3 and BBB- ("Level I Status") but lower than Level I Status --------------------------------------------------------------------------------------- ABR Applicable Margin 50 75 100 (in basis points) --------------------------------------------------------------------------------------- LIBOR Applicable Margin 150 175 200 (in basis points) --------------------------------------------------------------------------------------- In the event that either S&P or ▇▇▇▇▇'▇ shall discontinue its ratings of the REIT industry or Chateau Pa...
Applicable Margins. The Applicable ABR Margin and Applicable LIBOR Margin for the Tranche B-10 Term Loans shall be as set forth below: Tranche B-10 Term Loans
Applicable Margins. Each of the ABR Applicable Margin and the LIBOR Applicable Margin to be used in calculating the interest rate applicable to different Types of Borrowings and the Facility Fee Rate to be used in calculating the Facility Fee shall vary from time to time in accordance with the Borrower’s then applicable ▇▇▇▇▇’▇ debt rating, S&P’s debt rating and Fitch debt rating. The applicable debt ratings, the Applicable Margins and Facility Fee Rate are set forth in the following table: A- or higher A3 or higher 0.775 % 0 % 0.125 % BBB+ Baa1 0.825 % 0 % 0.15 % BBB Baa2 0.90 % 0 % 0.20 % BBB- Baa3 1.10 % 0.10 % 0.25 % Less than BBB- Less than Baa3 1.45 % 0.45 % 0.30 % If at any time the Borrower has two (2) applicable debt ratings, the Applicable Margin and Facility Fee Rate shall be the rate per annum applicable to the highest applicable debt rating; provided that if the highest applicable debt rating and the lowest applicable debt rating are more than one ratings category apart, the Applicable Margin and Facility Fee Rate shall be the rate per annum applicable to applicable debt rating that is one ratings category below the highest applicable debt rating. If at any time the Borrower has three (3) applicable debt ratings, and such applicable debt ratings are split, then: (A) if the difference between the highest and the lowest such applicable debt ratings is one ratings category (e.g. Baa2 by ▇▇▇▇▇’▇ and BBB- by S&P or Fitch), the Applicable Margin and Facility Fee Rate shall be the rate per annum that would be applicable if the highest of the applicable debt ratings were used; and (B) if the difference between such applicable debt ratings is two ratings categories (e.g. Baa1 by ▇▇▇▇▇’▇ and BBB- by S&P or Fitch) or more, the Applicable Margin and Facility Fee Rate shall be the rate per annum that would be applicable if the average of the two (2) highest applicable debt ratings were used, provided that if such average is not a recognized rating category, then the Applicable Margin and Facility Fee Rate shall be the rate per annum that would be applicable if the second highest applicable debt rating of the three were used. If at any time the Borrower has only one applicable debt rating (and such debt rating is from ▇▇▇▇▇’▇ or S&P), the Applicable Margin and Facility Fee Rate shall be the rate per annum applicable to such applicable debt rating. If the Borrower neither has an applicable debt rating from ▇▇▇▇▇’▇ nor S&P, the Applicable Margin and Facility Fee Rate shall be th...
Applicable Margins. (a) The Base Rate Applicable Margin and the LIBOR Applicable Margin to be used in calculating the interest rate applicable to different Types of Borrowings, shall vary from time to time in accordance with the Consolidated Leverage Ratio as follows: Consolidated Leverage Ratio LIBOR Applicable Margin Base Rate Applicable Margin Less than 35% 1.20 % 1.20 % 35% or greater but less than 40% 1.30 % 1.30 % 40% or greater but less than 45% 1.35 % 1.35 % 45% or greater but less than 50% 1.40 % 1.40 % 50% or greater but less than 55% 1.50 % 1.50 % 55% or greater 1.70 % 1.70 % The LIBOR Applicable Margin and Base Rate Applicable Margin shall be determined by the Administrative Agent from time to time, based on the Consolidated Leverage Ratio as set forth in the compliance certificate most recently delivered by the Borrower pursuant to Section 8.2(iv). Any adjustment to the LIBOR Applicable Margin and Base Rate Applicable Margin shall be effective as of the first day of the calendar month immediately following the month during which the Borrower delivers to the Administrative Agent the applicable compliance certificate pursuant to Section 8.2(iv). If the Borrower fails to deliver a compliance certificate in accordance with Section 8.2(iv), the LIBOR Applicable Margin and the Base Rate Applicable Margin shall equal the percentages corresponding to a Consolidated Leverage Ratio of 55% or greater until the first day of the calendar month immediately following the month that the required compliance certificate is delivered. Notwithstanding the foregoing, for the period from the Agreement Execution Date through but excluding the date on which the Administrative Agent first determines the LIBOR Applicable Margin and the Base Rate Applicable Margin as set forth above, the LIBOR Applicable Margin and the Base Rate Applicable Margin shall be determined based on a Consolidated Leverage Ratio of “Less than 35%”. Thereafter, such LIBOR Applicable Margin and Base Rate Applicable Margin shall be adjusted from time to time as set forth in this definition. It is understood and agreed that each change in pricing level shall apply during the period commencing on the effective date of such change and ending on the date immediately preceding the effective date of the next such change. The parties understand that the applicable interest rate for the Obligations and certain fees set forth herein may be determined and/or adjusted from time to time based upon certain financial ratios and/or...
Applicable Margins. Based on the calculation of the Consolidated Adjusted Leverage Ratio set forth below, the undersigned [Chief Accounting Officer] [or] [Treasurer] of the Borrower, on behalf of the Borrower and with no personal liability, certifies that [Tier 1] [Tier 2] [Tier 3] [or] [Tier 4] of the Term Loan Pricing Grid and Revolving Loan Pricing Grid (for determination of the Applicable Margin and the Letter of Credit Fee Percentage) shall become effective as of the fifth Business Day following the date this Compliance Certificate is required to be delivered pursuant to Section 5.02(d)(i) of the Credit Agreement. The Consolidated Adjusted Leverage Ratio was calculated as follows:
Applicable Margins. The interest due hereunder with respect to the Advances shall vary from time to time and shall be determined by reference to the Type of Advance and the then-current Leverage Ratio. Any such change in the Applicable Margin shall be made on the fifth (5th) day subsequent to the date on which the Administrative Agent receives a compliance certificate pursuant to Section 6.1(iv) with respect to the preceding fiscal quarter of Borrower, provided that the Administrative Agent does not object to the information provided in such certificate. Such changes shall be given prospective effect only, and no recalculation shall be done with respect to interest or Letter of Credit Fees accrued prior to the date of such change in the Applicable Margin. If any such compliance certificate shall later be determined to be incorrect and as a result a higher Applicable Margin should have been in effect for any period, Borrower shall pay to the Administrative Agent for the benefit of the Lenders all additional interest and fees which would have accrued if the original compliance certificate had been correct, as shown on an invoice to be prepared by the Administrative Agent and delivered to Borrower, on the next Payment Date following delivery of such invoice. The per annum Applicable Margins that will be either added to the Floor Base Rate to determine the Base Rate or added to LIBOR Base Rate (as adjusted for any Reserve Requirement) to determine the LIBOR Rate for any LIBOR Interest Period shall be determined as follows: > 55% but ≤ 60% 4.25 % 0 > 50% but ≤ 55% 3.75 % 0 > 45% but ≤ 50% 3.25 % 0 ≤45% 3.00 % 0
Applicable Margins. 16 2.5. Facility Fee...................................................................... 16 2.6. Upfront Fee....................................................................... 16 2.7.