Applicable Margin definition: Copy, customize, and use instantly
Introduction
The term "Applicable Margin" refers to the percentage added to a base rate (such as LIBOR or SOFR) to determine the total interest rate on a loan or credit facility. This margin often varies depending on factors like the borrower's creditworthiness, the loan's characteristics, and market conditions. It plays a key role in determining the cost of borrowing, ensuring that lenders are compensated for the risk they take on.
Below are various examples of how "Applicable Margin" can be defined in different contexts. Copy the one that fits your needs, customize it, and use it in your contract.
Definition of "Applicable Margin" as a financial interest rate component
This definition ties "Applicable Margin" to its role in financial agreements.
"Applicable Margin" means the percentage added to a base rate, such as LIBOR or the prime rate, to determine the total interest rate on a loan or credit facility, varying based on the creditworthiness of the borrower.
Definition of "Applicable Margin" as a credit facility term
This definition connects "Applicable Margin" to the terms of a loan.
"Applicable Margin" refers to the specific percentage added to the reference rate in a loan agreement, adjusted periodically based on the borrower's financial performance or market conditions.
Definition of "Applicable Margin" as a variable rate adjustment
This definition links "Applicable Margin" to variable rate loans.
"Applicable Margin" means the spread applied to a base rate in variable-rate loans, determined by factors like the borrower’s credit rating, prevailing market conditions, and loan agreement terms.
Definition of "Applicable Margin" as a contractual provision
This definition ties "Applicable Margin" to its use in contracts.
"Applicable Margin" refers to the margin specified in a contract, which is added to a reference rate to calculate the total interest charge, adjusted periodically according to the borrower’s profile or market conditions.
Definition of "Applicable Margin" as an adjustment based on credit quality
This definition connects "Applicable Margin" to credit quality.
"Applicable Margin" means the adjustment made to the base lending rate based on the borrower’s creditworthiness or financial standing, reflecting the risk level associated with the loan.
Definition of "Applicable Margin" as a performance-based rate
This definition links "Applicable Margin" to performance.
"Applicable Margin" refers to the margin determined by the performance of the borrower, where the rate can fluctuate based on financial metrics, such as debt-to-equity ratio or interest coverage ratio.
Definition of "Applicable Margin" as an interest rate component in syndicated loans
This definition ties "Applicable Margin" to syndicated loans.
"Applicable Margin" means the additional percentage added to the reference interest rate in syndicated loan agreements, which is subject to adjustment based on market conditions or the borrower’s financial standing.
Definition of "Applicable Margin" as a risk-adjusted interest rate
This definition connects "Applicable Margin" to risk adjustment.
"Applicable Margin" refers to the risk-based adjustment applied to the reference rate in loan agreements, factoring in the perceived risk of lending to the borrower.
Definition of "Applicable Margin" as a negotiated loan term
This definition links "Applicable Margin" to loan negotiations.
"Applicable Margin" means the agreed-upon margin added to the reference rate in a loan agreement, which may be subject to negotiation based on the financial strength or credit rating of the borrower.
Definition of "Applicable Margin" as a rate based on loan characteristics
This definition ties "Applicable Margin" to loan specifics.
"Applicable Margin" refers to the margin added to the base rate, determined by specific characteristics of the loan, including the type of loan, term, and borrower’s credit risk.
Definition of "Applicable Margin" as a financial interest rate component
This definition ties "Applicable Margin" to its role in financial agreements.
"Applicable Margin" means the percentage added to a base rate, such as LIBOR or the prime rate, to determine the total interest rate on a loan or credit facility, varying based on the creditworthiness of the borrower.
Definition of "Applicable Margin" as a credit facility term
This definition connects "Applicable Margin" to the terms of a loan.
"Applicable Margin" refers to the specific percentage added to the reference rate in a loan agreement, adjusted periodically based on the borrower's financial performance or market conditions.
Definition of "Applicable Margin" as a variable rate adjustment
This definition links "Applicable Margin" to variable rate loans.
"Applicable Margin" means the spread applied to a base rate in variable-rate loans, determined by factors like the borrower’s credit rating, prevailing market conditions, and loan agreement terms.
Definition of "Applicable Margin" as a contractual provision
This definition ties "Applicable Margin" to its use in contracts.
"Applicable Margin" refers to the margin specified in a contract, which is added to a reference rate to calculate the total interest charge, adjusted periodically according to the borrower’s profile or market conditions.
Definition of "Applicable Margin" as an adjustment based on credit quality
This definition connects "Applicable Margin" to credit quality.
"Applicable Margin" means the adjustment made to the base lending rate based on the borrower’s creditworthiness or financial standing, reflecting the risk level associated with the loan.
Definition of "Applicable Margin" as a performance-based rate
This definition links "Applicable Margin" to performance.
"Applicable Margin" refers to the margin determined by the performance of the borrower, where the rate can fluctuate based on financial metrics, such as debt-to-equity ratio or interest coverage ratio.
Definition of "Applicable Margin" as an interest rate component in syndicated loans
This definition ties "Applicable Margin" to syndicated loans.
"Applicable Margin" means the additional percentage added to the reference interest rate in syndicated loan agreements, which is subject to adjustment based on market conditions or the borrower’s financial standing.
Definition of "Applicable Margin" as a risk-adjusted interest rate
This definition connects "Applicable Margin" to risk adjustment.
"Applicable Margin" refers to the risk-based adjustment applied to the reference rate in loan agreements, factoring in the perceived risk of lending to the borrower.
Definition of "Applicable Margin" as a negotiated loan term
This definition links "Applicable Margin" to loan negotiations.
"Applicable Margin" means the agreed-upon margin added to the reference rate in a loan agreement, which may be subject to negotiation based on the financial strength or credit rating of the borrower.
Definition of "Applicable Margin" as a rate based on loan characteristics
This definition ties "Applicable Margin" to loan specifics.
"Applicable Margin" refers to the margin added to the base rate, determined by specific characteristics of the loan, including the type of loan, term, and borrower’s credit risk.
Definition of "Applicable Margin" as a threshold-based rate adjustment
This definition connects "Applicable Margin" to threshold adjustments.
"Applicable Margin" means the margin added to the base rate, adjusted based on pre-established financial thresholds, such as credit rating bands or debt-to-equity ratios.
Definition of "Applicable Margin" as a rate changeable based on loan status
This definition ties "Applicable Margin" to loan status.
"Applicable Margin" refers to the margin applied to the interest rate, which may fluctuate depending on the ongoing status of the loan, such as whether the borrower is in compliance with certain financial covenants.
Definition of "Applicable Margin" as a rate influenced by economic conditions
This definition links "Applicable Margin" to economic factors.
"Applicable Margin" refers to the percentage added to the reference rate, subject to changes based on prevailing market or economic conditions, such as inflation rates or central bank policies.
Definition of "Applicable Margin" as a rate based on loan size
This definition connects "Applicable Margin" to the size of the loan.
"Applicable Margin" means the margin applied to the base rate, which may vary depending on the size of the loan, with larger loans possibly receiving a more favorable margin.
Definition of "Applicable Margin" as a rate for subordinated loans
This definition ties "Applicable Margin" to subordinated loans.
"Applicable Margin" refers to the additional percentage added to the reference rate for subordinated loans, typically higher due to the increased risk associated with these loans.
Definition of "Applicable Margin" as an adjustable rate based on borrower’s financial situation
This definition links "Applicable Margin" to borrower’s financial health.
"Applicable Margin" means the margin that is adjusted periodically based on the borrower’s financial situation, including metrics such as profitability or liquidity ratios.
Definition of "Applicable Margin" as a rate reflective of credit terms
This definition ties "Applicable Margin" to credit agreement terms.
"Applicable Margin" refers to the margin added to the reference interest rate based on the specific credit terms set forth in the loan agreement, such as the duration or security of the loan.
Definition of "Applicable Margin" as a performance-driven loan rate
This definition connects "Applicable Margin" to loan performance.
"Applicable Margin" refers to a rate adjustment to the reference rate based on the borrower’s financial performance or ability to meet agreed-upon financial milestones.
Definition of "Applicable Margin" as a fluctuating rate based on market indices
This definition links "Applicable Margin" to market indices.
"Applicable Margin" means the spread over a base rate like LIBOR or SOFR, with the margin fluctuating in accordance with changes in relevant market indices or benchmarks.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.