Maturity and Interest. The Notes will mature on October 25, 2010. Except as provided below, interest on the Notes will accrue at the rate of 15% per annum from April 25, 2001 through maturity; provided, that, during any time while a Default or Event of Default has occurred and remains uncured, the interest rate shall increase to the greater of (i) the interest rate then in effect plus 1% per annum and (ii) the Prime Rate then in effect. If the Ratio (as derived from financial statements prepared on or prior to May 15, 2002) as of March 31, 2002 is not equal to or less than 3.75x, the interest rate on the Notes as of March 31, 2002 shall increase to 17% per annum; provided, that the interest rate on the Notes will return to 15% per annum at such time and only for such time as the Ratio is equal to or less than 3.75x; provided, however, that if the Ratio is greater than 3.75x at any time thereafter, the interest rate will return to 17% per annum, as of the last date of the period for which the Ratio was calculated, until such time as the Ratio is equal to or less than 3.75x ; provided, further, that any calculation of the Ratio delivered to the Trustee shall be accompanied by a certified Officers' Certificate executed by two officers of the Company, one of whom shall be the Chief Financial Officer of the Company. In the absence of such an Officer's Certificate, the Trustee may conclusively assume that the interest rate on the Notes shall remain as currently in effect provided, however, that the absence of such an Officer's Certificate shall not relieve the Company of any obligation to pay interest at a rate greater than 15% per annum as provided herein. Interest on the Notes shall be computed on the basis of a 360-day year of twelve 30-day months. -32- Cash interest will begin to accrue on the Notes from April 25, 2001; provided that with respect to any Interest Payment Date on or prior to October 25, 2005, the Company will pay interest on such Interest Payment Date through the issuance of additional Notes (valued at 100% of the principal amount thereof) in an aggregate amount equal to the interest otherwise payable on such Interest Payment Date; provided, however, that if, at any time, an Event of Default has occurred and payment on the Notes has been accelerated pursuant to Section 5.02 of this Indenture, then accrued and unpaid interest shall be payable in cash only. Interest will be payable semi-annually on each April 25 and October 25, commencing October 25, 2001, to the holders of record of Notes at the close of business on April 1 and October 1, respectively, immediately preceding such Interest Payment Date. Interest on the Notes will accrue from the most recent date to which interest has been paid or, if no interest has been paid, from the Issue Date.
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Sources: Indenture (Atrium Corp)
Maturity and Interest. The Notes will mature on October 25April 1, 20102009. Except as provided below, interest Interest on the Notes will accrue at the rate of 1512 1/4% per annum from April 25, 2001 the Issue Date through maturity; provided, that, during any time while a Default or Event of Default has occurred and remains uncured, PROVIDED that in the interest rate shall increase to the greater of event either (ix) the interest rate then in effect plus 1% per annum and (ii) the Prime Rate then in effect. If the Ratio EBITDA (as derived from financial statements prepared on defined below) of the Company and the Restricted Subsidiaries does not equal or prior to May 15, 2002exceed $7.25 million (the "EBITDA Target") as of for the quarter ended March 31, 2002 is not equal to or less than 3.75x1999, the interest rate on the Notes as of March 31, 2002 shall will increase to 17by 0.50% per annumannum to a rate of 12 3/4% per annum and the Notes will begin accruing interest at such higher rate on April 1, 1999, or (y) EBITDA of the Company and the Restricted Subsidiaries does not equal or exceed the EBITDA Target for the quarter ended June 30, 1999, the interest rate on the Notes will increase by 0.50% per annum to a rate of 12 3/4% per annum and the Notes would begin accruing interest at such higher rate on July 1, 1999; providedPROVIDED, FURTHER, that the interest rate on the Notes will return to 15% per annum at such time and only for such time as the Ratio is equal to or less than 3.75x; provided, however, that if the Ratio is greater than 3.75x at any time thereafter, the interest rate will return to 17not exceed 12 3/4% per annum. Following any increase in interest rate as stated above, as of the last date of the period for which the Ratio was calculated, until such time as the Ratio is equal to no further adjustment (upward or less than 3.75x ; provided, further, that any calculation of the Ratio delivered to the Trustee downward) shall be accompanied by a certified Officers' Certificate executed by two officers of the Company, one of whom shall be the Chief Financial Officer of the Company. In the absence of such an Officer's Certificate, the Trustee may conclusively assume that made to the interest rate on the Notes shall remain as currently in effect provided, however, that through maturity. In the absence of such an Officer's Certificate shall not relieve event the Company of any obligation to pay interest at a rate greater than 15% per annum as provided herein. Interest on and the Notes shall be computed on Restricted Subsidiaries meet the basis of a 360-day year of twelve 30-day months. -32- Cash interest will begin to accrue on the Notes from April 25, 2001; provided that with respect to any Interest Payment Date on or prior to October 25, 2005, the Company will pay interest on such Interest Payment Date through the issuance of additional Notes (valued at 100% EBITDA Target for each of the principal amount thereofquarters ended March 31, 1999 and June 30, 1999, no adjustment (upward or downward) in an aggregate amount equal will be made to the interest otherwise payable on rate. In the event the interest rate is increased pursuant to this paragraph, such event shall be referred to as an "Interest Payment Date; providedTriggering Event." If the Company fails to file a quarterly report on Form 10-Q for a quarter when it would otherwise be required by the Commission's rules, howeverwhether or not it is so obligated to do so under Section 10.10 hereof, that iffor which the EBITDA Target is being determined, at any time, an Event of Default has occurred and payment on the Notes has been accelerated pursuant to Section 5.02 of this Indenture, then accrued and unpaid interest EBITDA for such quarter shall be payable in cash only. Interest will deemed to be payable semi-annually on each April 25 and October 25, commencing October 25, 2001, to less than the holders of record of Notes at the close of business on April 1 and October 1, respectively, immediately preceding such Interest Payment Date. Interest on the Notes will accrue from the most recent date to which interest has been paid or, if no interest has been paid, from the Issue DateEBITDA Target.
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