Use of Proceeds of Term Loans Clause Samples
The 'Use of Proceeds of Term Loans' clause defines how the borrower is permitted to utilize the funds received from a term loan. Typically, this clause outlines specific purposes for which the loan proceeds may be used, such as refinancing existing debt, funding capital expenditures, or supporting general corporate activities, while expressly prohibiting uses like speculative investments or unlawful activities. By clearly delineating acceptable uses, this clause ensures that the lender’s funds are applied in a manner consistent with the agreed risk profile and business objectives, thereby protecting the lender’s interests and maintaining transparency in the loan arrangement.
Use of Proceeds of Term Loans. The proceeds of the Term Loans hereunder shall be used by the Company for the purpose of refinancing the term loans owing by the Company under the Existing Credit Agreement (including interest, fees and expenses in connection with such refinancing), and for general corporate purposes not prohibited hereunder.
Use of Proceeds of Term Loans. The proceeds of the Term Loans shall be used solely (i) in the case of all Term Loans, to fund the Refinancing (other than Term D Loans) and to pay Transaction Costs, (ii) in the case of Term A Loans made after the Effective Date, to fund the Delayed Purchases or to refund Swing Loans or Revolving Loans used to fund Delayed Purchases and (iii) in the case of Term D Loans to pay in part the cash merger consideration under the ▇▇▇▇▇ Merger Agreement and the Defeasance."
2.8. A new Section 2.04(e) is hereby added to the Credit Agreement to read as follows:
Use of Proceeds of Term Loans. The proceeds of the Term Loans hereunder shall be used by the Company for general corporate purposes of the Company and its Subsidiaries not prohibited hereunder.
Use of Proceeds of Term Loans. The Co-Borrowers shall use the proceeds of Term Loans made hereunder to finance the Capital Expenditures of the Co-Borrowers and to refinance existing Debt of the Co-Borrowers. No part of the proceeds of any of the Term Loans will be used for any purpose which violates the provisions of Regulations G, T, U or X of the Board of Governors of the Federal Reserve System in effect on the date of making such Loans.
Use of Proceeds of Term Loans. The proceeds of the Term Loans were used solely for the purposes set forth in Section 2.04(d) of the Existing Credit Agreement.
Use of Proceeds of Term Loans. The proceeds of the Term Loans hereunder shall be used by the Company for the purpose of refinancing certain outstanding Indebtedness of the Company and its Subsidiaries under the Existing Agreement and other existing Indebtedness and to redeem or repurchase Indebtedness issued under the Designated Senior Secured Indenture (including fees and expenses in connection with such refinancing, repurchase and redemption), and for general corporate purposes not prohibited hereunder. To the extent that any Designated Senior Secured Notes shall remain outstanding after the Closing Date, an amount of the proceeds of the Term Loans and, if necessary, Revolving Credit Loans made on the Closing Date, sufficient to purchase, redeem or defease such Designated Senior Secured Notes and pay interest and any premium thereon shall, at the Company's option, be deposited in a defeasance trust with the trustee under the Designated Senior Secured Indenture or placed in a Cash Collateral Account under the direction of the Term Loan Administrative Agent pending their use to repurchase, redeem or defease such Designated Senior Secured Notes.
Use of Proceeds of Term Loans. The proceeds of the Term Loans shall be used by the Borrower on the Closing Date to (a) finance the prepayment of certain outstanding indebtedness pursuant to the Refinancing and to pay related fees and expenses and (b) to finance a portion of the Acquisition and/or to pay related fees and expenses.
Use of Proceeds of Term Loans. The proceeds of the Term Loans ------------------------------ shall be utilized by the Borrower only (a) to finance a portion of the consideration paid to tendering shareholders of Premisys on account of the Tendered Shares or otherwise to acquire Shares, (b) to refinance any such consideration which is paid out of equity of the Borrower or with the proceeds of loans from Zhone and (c) to pay any fees and expenses relating to the Transaction.
Use of Proceeds of Term Loans. The proceeds of the Term Loans may ----------------------------- be used solely for the following purposes: (i) to repay any Tender Offer Loans outstanding on the Merger Funding Date, (ii) to repay in full amounts owing under the Existing OHM Credit Agreement, (iii) to pay Transaction Costs up to an aggregate principal amount of $33,000,000 (including any such costs paid on or prior to the Tender Offer Funding Date) and (iv) to fund working capital in the ordinary course of business of the Company and its Subsidiaries and for other lawful general corporate purposes not prohibited hereunder.
Use of Proceeds of Term Loans. (i) The proceeds of the Third Supplemental Term Loan shall be used (A) to pay the "Purchase Price" under (and as defined in) the Recoil U.S. Acquisition Agreement, (B) to pay (and enable Kaynar U.K. to pay) that portion of the "Purchase Price" under (and as defined in) the Recoil Australia Acquisition Agreement attributable to the Capital Stock of Recoil Belgium and Recoil U.K., (C) to make capital contributions to Recoil Holdings and Recoil Australia Holdings, the proceeds of which will be contributed to the capital of RCL (and the Borrower shall cause RCL to use the proceeds of such capital contributions for the purposes set forth in Section 2.01(e) of the RCL Loan Agreement) and (D) for working capital in the ordinary course of the Borrower's business and for other lawful general corporate purposes.
(ii) The proceeds of the Fourth Supplemental Term Loan shall be used to reduce the outstanding principal balance of the Revolving Loans by an amount equal to $6,000,000.
2.3 AMENDMENT TO SECTION 2.