Interest Rates and Fees Clauses
(Credit Agreement)

Summary

These Interest Rates and Fees clauses are included in a credit agreement in a typical syndicated loan transaction. The clauses set forth the interest rates, interest payments, and fees applicable to the transaction. These clauses include practical guidance, drafting notes, and alternate and optional clauses. Note that these clauses contemplate a financing that includes the following elements: • A senior secured credit facility consisting of a term loan A and a term loan B facility, both funded in full at closing. • Agency roles for each of an administrative agent, collateral agent and issuing bank, acting for a syndicate of lenders. • Collateral and guarantee support from the loan parties, generally including a group of the borrower's subsidiaries and the borrower's immediate parent entity. The capitalized terms used in these sample provisions should be conformed to the defined terms in the relevant credit agreement. These clauses should be read in conjunction with the practice notes Interest Rate Provisions in Credit Agreements (SOFR) and Fees in Loan Transactions and Fee Letter Considerations — Fee Letters Generally. For more information on recent trends concerning interest rate floors, see Credit Spread Adjustment and Rate Floor Tracker (2025) (which also tracks rate floors). For information on alternative reference rates such as Bloomberg's Short-Term Bank Yield Index, see Alternative Reference Rate Loans Tracker. For a full listing of key content covering a credit agreement, see Credit Agreement Resource Kit.