Exclusion Event Definition in Subscription Facilities

Summary

This definition of exclusion event clause is used in a subscription facility to describe the triggers that would remove an investor's capital commitments from the borrowing base in that facility. These are the events that are likely to impact the investor's financial capability or legal obligation to fund its capital contributions to repay the subscription facility. This clause includes practical guidance and drafting notes. This definition should be read and used in conjunction with the practice note Subscription Facility Exclusion Events, which provides practical guidance on negotiating these terms from a lender's and borrower's perspective.