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Credit Agreement Mandatory Prepayment Sample Clause

Book Publication Date: Nov 2014
Description: General business covenants place restrictions on corporate structure and business activities of an obligor. These sample mandatory prepayment provisions require the borrower to prepay loans at certain times if they have excess cash flow, or to maintain favorable ratio of outstanding working capital obligations to borrowing base.
Type: Contract Clauses
PLI Item #: 128784
Practice Area: Banking and finance, Corporate finance

Keywords: "credit agreement"; mandatory prepayment"; "corporate finance"; cover; "borrowing base"; "issuance of shares"; indebtedness; "excess cash flow"; "asset disposition"; borrower; lender; loan; "letter of credit"; "term loans"; "working capital loans"

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