Calculation of Borrowing Base Availability Clause Samples

The "Calculation of Borrowing Base Availability" clause defines how the maximum amount a borrower can draw under a credit facility is determined at any given time. Typically, this involves assessing the value of certain assets—such as accounts receivable or inventory—against specified eligibility criteria and applying agreed-upon advance rates or discounts. The clause ensures that the lender's risk is managed by tying the amount available to borrow to the value of the borrower's qualifying assets, thereby preventing over-advancement and protecting the lender's collateral position.
Calculation of Borrowing Base Availability. The Borrower’s Borrowing Base Availability, as of __________ __, 20__, is as follows: A. Revolving Credit Loan Commitments $__________________ B. Current Outstanding Balances on Revolving Credit Loans and Swingline Loans $__________________ C. Current Outstanding Balances on other “senior securities representing indebtedness” (as such term is used in the 1940 Act), if any $_________________ D. Borrowing Base Availability (lesser of (i) line ▇▇ ▇▇▇▇▇ ▇▇▇▇ ▇▇ ▇▇▇ ▇▇▇▇ ▇▇ ▇▇ (▇▇) line 2A minus line 2B) $__________________ E. Requested Advance (if any) $__________________
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Calculation of Borrowing Base Availability. The Borrower’s Borrowing Base Availability, as of, ___________ __, 20__, is as follows: A. Revolving Credit Loan Commitments $____________ B. Current Outstanding Balances on Revolving Credit Loans and Swingline Loans $____________ C. Current Outstanding Balances on other “senior securities representing indebtedness” (as such term is used in the 1940 Act), if any $____________ D. Borrowing Base Availability (lesser of (i) line IB minus line 2B and line 2C or (ii) line 2A minus line 2B) $____________ E. Requested Advance (if any) $____________
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Calculation of Borrowing Base Availability. The Borrower’s Borrowing Base Availability, as of __________ __, 20__, is as follows: A. Revolving Credit Loan Commitments $__________________ B. Current Outstanding Balances on Revolving $__________________ Credit Loans and Swingline Loans C. Current Outstanding Balances on other $_________________ “senior securities” (as such term is used in the 1940 Act), if any D. Borrowing Base Availability $__________________ (lesser of (i) line 1▇ ▇▇▇▇▇ ▇▇▇▇ ▇▇ ▇▇▇ ▇▇▇▇ ▇▇ ▇▇
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Calculation of Borrowing Base Availability. The Borrower’s Borrowing Base Availability, as of ___, 20___, is as follows: A. Revolving Credit Loan Commitments $ B. Current Outstanding Balances on Revolving Credit Loans and Swingline Loans $ C. Current Outstanding Balances on other “senior securities representing indebtedness” (as such term is used in the 1940 Act), if any $ D. Borrowing Base Availability (lesser of (i) line ▇▇ ▇▇▇▇▇ ▇▇▇▇ ▇▇ ▇▇▇ ▇▇▇▇ ▇▇ ▇▇ (▇▇) line 2A minus line 2B) $ E. Requested Advance (if any) $
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Related to Calculation of Borrowing Base Availability

  • Calculation of Borrowing Base For purposes of this Agreement, the “Borrowing Base” shall be determined, as at any date of determination, as the sum of the Advance Rates of the Value of each Portfolio Investment (excluding any Cash Collateral held by the Administrative Agent pursuant to Section 2.05(k) or the last paragraph of Section 2.09(a)); provided that: (a) the Advance Rate applicable to that portion of the aggregate Value of the Portfolio Investments in a consolidated group of corporations or other entities (collectively, a “Consolidated Group”), in accordance with GAAP, that exceeds 10% of Shareholders’ Equity of the Borrower (which, for purposes of this calculation shall exclude the aggregate amount of investments in, and advances to, Financing Subsidiaries) shall be 50% of the Advance Rate otherwise applicable; provided that, with respect to the Portfolio Investments in a single Consolidated Group designated by the Borrower to the Administrative Agent such 10% figure shall be increased to 12.5%; (b) the Advance Rate applicable to that portion of the aggregate Value of the Portfolio Investments of all issuers in a Consolidated Group exceeding 20% of Shareholders’ Equity of the Borrower (which, for purposes of this calculation shall exclude the aggregate amount of investments in, and advances to, Financing Subsidiaries) shall be 0%; (c) the Advance Rate applicable to that portion of the aggregate Value of the Portfolio Investments in any single Industry Classification Group that exceeds 20% of Shareholders’ Equity of the Borrower (which for purposes of this calculation shall exclude the aggregate amount of investments in, and advances to, Financing Subsidiaries) shall be 0%; provided that, with respect to the Portfolio Investments in a single Industry Classification Group from time to time designated by the Borrower to the Administrative Agent such 20% figure shall be increased to 30% and, accordingly, only to the extent that the Value for such single Industry Classification Group exceeds 30% of the Shareholders’ Equity shall the Advance Rate applicable to such excess Value be 0%; (d) no Portfolio Investment may be included in the Borrowing Base unless the Collateral Agent maintains a first priority, perfected Lien (subject to Permitted Liens) on such Portfolio Investment and such Portfolio Investment has been Delivered (as such term is used in and to the extent required under Section 7.01(a) of the Guarantee and Security Agreement) to the Collateral Agent, and then only for so long as such Portfolio Investment continues to be Delivered as contemplated therein; (e) the portion of the Borrowing Base attributable to Performing Non-Cash Pay High Yield Securities, Performing Non-Cash Pay Mezzanine Investments, Equity Interests and Non-Performing Portfolio Investments shall not exceed 20%; (f) the portion of the Borrowing Base attributable to Equity Interests shall not exceed 10% (it being understood that in no event shall Equity Interests of Financing Subsidiaries be included in the Borrowing Base); (g) the portion of the Borrowing Base attributable to Non-Performing Portfolio Investments shall not exceed 15% and the portion of the Borrowing Base attributable to Portfolio Investments that were Non-Performing Portfolio Investments at the time such Portfolio Investments were acquired shall not exceed 5%; and (h) the portion of the Borrowing Base attributable to Portfolio Investments invested outside the United States, Canada, the United Kingdom, Australia, Germany, France, Belgium, the Netherlands, Luxembourg, Switzerland, Denmark, Finland, Norway and Sweden shall not exceed 5% without the consent of the Administrative Agent. As used herein, the following terms have the following meanings:

  • Borrowing Base Agent shall have received evidence from Borrowers that the aggregate amount of Eligible Receivables and Eligible Inventory is sufficient in value and amount to support Advances in the amount requested by Borrowers on the Closing Date;

  • Funds Availability For determining the availability of your deposits, every day is a business day except Saturdays, Sundays, federal holidays and legal banking holidays in the State of Utah.

  • Excess Availability Borrowers shall maintain Excess Availability at ------------------- all times of at least $4,500,000.

  • FUNDING AVAILABILITY This Contract is contingent upon the continued availability of funding. If funds become unavailable through the lack of appropriations, legislative or executive budget cuts, amendment of the Appropriations Act, state agency consolidation, or any other disruptions of current appropriations, DFPS will reduce or terminate this Contract.