Repayment and Prepayment Provisions in Credit Agreements

Summary

This practice note discusses the prepayment and repayment of loans under a credit facility, whether upon the occurrence of a scheduled payment date or a certain triggering event (such as receipt of excess cash flow or extraordinary receipts, issuance of debt or equity, or an asset sale), voluntarily by the borrower. It also looks at the order of application of these payments to a facility, along with any premiums payable (such as hard call or soft call loans).