Common use of MARGIN RATCHET Clause in Contracts

MARGIN RATCHET. (a) The initial Margin is the percentage rate per annum specified as such in the Reference Rate Terms. (b) The Margin shall subsequently be determined by reference to Group Leverage for each Relevant Period as shown in the Compliance Certificate for that Relevant Period delivered to the Agent pursuant to Clause 23.4 (Provision and contents of Compliance Certificates), and in the manner set out below in this Clause 12.3. (c) Subject to paragraphs (d) to (f) below, the Margin will be the percentage rate per annum set out below opposite the applicable range for Group Leverage for the Relevant Period: Group Leverage Margin % p.a. Greater than or equal to 3.0: 1 6.5 % Less than 3.0: 1 but greater than or equal to 2.5: 1 6.0 % Less than 2.5: 1 but greater than or equal to 1.5: 1 5.75 % Less than 1.5: 1 5.25 % (d) Any change in the Margin for a Loan shall take effect on the date (the reset date) which is the first day of the next Interest Period for that Loan following receipt by the Agent of the Compliance Certificate for the applicable Relevant Period pursuant to Clause 23.4 (Provision and contents of Compliance Certificate). (e) If, following receipt by the Agent of the Compliance Certificate related to the relevant Annual Financial Statements, that Compliance Certificate does not confirm the basis for a reduced Margin, then the provisions of paragraph (b) of Clause 12.2 (Payment of interest) shall apply and the Margin for each Loan during the period when such reduced Margin was applied shall be the percentage per annum determined using the table above and the revised Group Leverage calculated using the figures in that Compliance Certificate. (f) While an Event of Default is continuing, the Margin will be the highest percentage per annum set out above.