Permanent Reduction of the Revolving Credit Commitment Sample Clauses
The "Permanent Reduction of the Revolving Credit Commitment" clause defines the process by which a borrower can irrevocably decrease the maximum amount of credit available under a revolving credit facility. Typically, this involves the borrower providing advance written notice to the lender, specifying the amount to be reduced, after which the lender adjusts the commitment accordingly and the borrower’s ability to draw funds is limited to the new, lower amount. This clause is essential for borrowers who wish to reduce their borrowing costs by lowering unused commitment fees or to align their credit facility with changing financing needs, and it provides lenders with clarity on the available credit exposure.
Permanent Reduction of the Revolving Credit Commitment. (a) The Borrower shall have the right at any time and from time to time, upon at least three Business Days prior irrevocable written notice to the Administrative Agent, to permanently terminate or reduce, without premium or penalty, the Revolving Credit Commitments in whole or in part (it being agreed that such notice may state that the reduction of such Revolving Credit Commitments is conditioned upon the effectiveness of other credit facilities, acquisitions, dispositions or other transactions, in which case, such notice may be revoked or modified by Borrower (by notice to Administrative Agent on or prior to the specified date of such reduction of the Revolving Credit Commitments) if such condition is not satisfied); provided that (a) any such reduction shall apply proportionately and permanently to reduce the Revolving Credit Commitment of each of the Lenders of any applicable Class, except that notwithstanding the foregoing, in connection with the establishment on any date of any Extended Revolving Credit Commitments pursuant to Section 5.16(d), the Revolving Credit Commitments of any one or more Lenders providing any such Extended Revolving Credit Commitments on such date shall be reduced in an amount equal to the amount of the Revolving Credit Commitments of such Lender so extended on such date (provided that (x) after giving effect to any such reduction and to the repayment of any Revolving Credit Loans made on such date, the Revolving Credit Exposure of any such Lender does not exceed the Revolving Credit Commitment thereof and (y) for the avoidance of doubt, any such repayment of Revolving Credit Loans contemplated by the preceding clause shall be made in compliance with the requirements of Section 5.4 with respect to the ratable allocation of payments hereunder, with such allocation being determined after giving effect to any conversion pursuant to Section 5.16(d) of Revolving Credit Commitments and Revolving Credit Loans into Extended Revolving Credit Commitments and Extended Revolving Credit Loans pursuant to Section 5.16(d) prior to any reduction being made to the Revolving Credit Commitment of any other Lender), (b) any partial reduction pursuant to this Section 2.5(a) shall be in the amount of at least $3,000,000 or any whole multiple of $1,000,000 in excess thereof and (c) after giving effect to such termination or reduction and to any prepayments of the Loans made on the date thereof in accordance with this Agreement, the aggregate amount ...
Permanent Reduction of the Revolving Credit Commitment. (a) The Borrower shall have the right at any time and from time to time, upon at least five (5) Business Days prior written notice to the Administrative Agent, to permanently reduce, in whole at any time or in part from time to time, without premium or penalty, the Revolving Credit Commitment in an aggregate principal amount not less than $5,000,000 or any whole multiple of $1,000,000 in excess thereof.
(b) Each permanent reduction permitted pursuant to this Section 2.5 shall be accompanied by a payment of principal sufficient to reduce the aggregate principal amount of Revolving Credit Loans and L/C Obligations after such reduction to the Revolving Credit Commitment as so reduced. Any reduction of the Revolving Credit Commitment to zero shall be accompanied by payment of all outstanding Obligations with respect to the Revolving Credit Facility (and furnishing of cash collateral satisfactory to the Administrative Agent for all L/C Obligations) and termination of the Revolving Credit Commitment and the Revolving Credit Facility. Such cash collateral shall be applied in accordance with Section 12.2(b). If the reduction of the Revolving Credit Commitment requires the repayment of any LIBOR Rate Loan, such reduction may be made only on the last day of the then current Interest Period applicable thereto unless such repayment is accompanied by any amount required to be paid pursuant to Section 5.10 hereof.
Permanent Reduction of the Revolving Credit Commitment. The Borrower shall have the right at any time and from time to time, upon at least five (5) Business Days prior written notice to the Administrative Agent, to permanently reduce, without premium or penalty, (i) the entire Revolving Credit Commitment at any time or (ii) portions of the Revolving Credit Commitment, from time to time, in an aggregate principal amount not less than $5,000,000. The amount of each partial permanent reduction shall permanently reduce the Revolving Credit Lenders’ Revolving Credit Commitments prorata in accordance with their respective Revolving Credit Commitment Percentages. Notwithstanding the foregoing, no reduction of the Revolving Credit Commitments shall be permitted if, after giving effect thereto and to any prepayment made and/or Cash Collateral provided therewith, the Revolving Credit Obligations (less any such Cash Collateral) would exceed the Revolving Credit Commitment, as so reduced. All reductions to the Revolving Credit Commitment elected under this Section 2.5 shall be in addition to the reductions in the Revolving Credit Commitment provided for in Section 2.3 and, accordingly, may result in the termination of the Revolving Credit Commitment prior to the date set forth in clause (a) of Section 2.6.
Permanent Reduction of the Revolving Credit Commitment. The Company shall have the right at any time and from time to time, upon at least five (5) Business Days prior written notice to the Administrative Agent, in the form attached hereto as Exhibit C (a "Notice of Aggregate Commitment Reduction"), to permanently reduce, without premium or penalty, (i) the entire Aggregate Commitment at any time to zero or (ii) portions of the Aggregate Commitment, from time to time, in an aggregate principal amount not less than $10,000,000 or any whole multiple of $1,000,000 in excess thereof. Such reduction shall permanently reduce the Lenders' Commitments pro rata in accordance with their respective Commitment Percentages.
Permanent Reduction of the Revolving Credit Commitment