Term loan originated after April 24, 2020

Term loan originated after April 24, 2020

Upsized tranche (itself a term loan) of a term loan or revolving credit facility made by an Eligible Lender that was originated on or before April 24, 2020, and that has a remaining maturity of at least 18 months.

If the original credit was part of a multi-lender facility, FRB guidance contemplates that any Eligible Lender participating in such credit may provide all or a prorated portion the upsized tranche if such lender owns an interest in the credit at the time of upsizing.

5 years

Adjustable Rate LIBOR (1-month or 3-month) + 3%

$250,000

$10,000,000

The lesser of (i) $35M or (ii) the amount that, when added to outstanding and undrawn available debt,* does not exceed 4x adjusted 2019 EBITDA

The lesser of (i) $50M or (ii) the amount that, when added to outstanding and undrawn available debt,* does not exceed 6x adjusted 2019 EBITDA

The lesser of (i) $300M or (ii) an amount that, when added to outstanding and undrawn available debt,* does not exceed 6x adjusted 2019 EBITDA

The methodology an Eligible Lender requires an Eligible Borrower to use in calculating adjusted 2019 EBITDA must be the same methodology that the Eligible Lender previously used for adjusting EBITDA when extending credit to the Eligible Borrower (or to similarly situated borrowers) on or before April 24, 2020.

The methodology an Eligible Lender requires an Eligible Borrower to use in calculating adjusted 2019 EBITDA must be the same methodology that the Eligible Lender previously used for adjusting EBITDA when originating or amending the Eligible Loan on or before April 24, 2020.

No principal payments required for the first 24 months.
Interest payments deferred for 12 months (interest capitalized).

Years 3-4: 15% of the principal each year
Year 5: remaining 70% of principal due

Eligible Lender retains 5% of loan principal.

Eligible Lender retains 5% of principal of upsized tranche.

Must be retained until loan matures or the Main Street SPV sells all of its participation, whichever comes first.

Eligible Lender must retain (i) its 5% of the upsized tranche until the upsized tranche matures or the SPV sells all of its 95% participation, whichever comes first, and (ii) its interest in the underlying loan until the underlying loan matures, the upsized tranche matures, or the SPV sells all of its 95% participation, whichever comes first.

Eligible Borrower may prepay loans without penalty at any time.

Main Street loans are full-recourse loans that are not forgivable. The principal amount cannot be reduced through loan forgiveness.

Secured or unsecured

Secured or unsecured.
If the Eligible Borrower has any other secured loans or debt instruments at the time of origination, the loan must be secured.

Secured or unsecured; however, any collateral securing the Eligible Loan must secure the upsized tranche on a pro rata basis.
Note: an Eligible Lender can require the Eligible Borrower to pledge additional collateral to secure an upsized tranche as a condition of approval.

At the time of origination or any time during the loan term, the loan cannot be contractually subordinated in a manner that subordinates the loan in or outside of bankruptcy to the Eligible Borrower’s other debt instruments. There is no prohibition on an Eligible Borrower’s taking on new secured or unsecured debt after receiving an MSNLF loan, provided the new debt would not have higher contractual payment priority in bankruptcy than the MSNLF loan.

At the time of origination or any time during the loan term, the loan must be senior to or pari passu with, in terms of priority and security, the Eligible Borrower’s other loans or debt instruments, other than mortgage debt.
Must include a standard lien covenant or negative pledge that is of the type and that contains the exceptions, limitations, carve-outs, baskets, materiality thresholds, and qualifiers that are consistent with those used by the Eligible Lender in its ordinary course lending to similarly situated borrowers.

At the time of upsizing and at all times the upsized tranche is outstanding, the upsized tranche must be senior to or pari passu with, in terms of priority and security, the Eligible Borrower’s other loans or debt instruments, other than mortgage debt.

Must include a standard lien covenant or negative pledge that is of the type and that contains the exceptions, limitations, carve-outs, baskets, materiality thresholds, and qualifiers that are consistent with those used by the Eligible Lender in its ordinary course lending to similarly situated borrowers. (For upsized tranches where the underlying loan is part of a multi-lender facility, any lien covenant or negative pledge that was negotiated in good faith prior to April 24, 2020, as part of the underlying loan is sufficient.)

The Eligible Borrower cannot repay the principal balance of, or pay any interest on, any debt until the MSLP loan is repaid in full, unless the debt or interest payment is mandatory and due.**

The Eligible Borrower cannot repay the principal balance of, or pay any interest on, any debt until the MSLP loan is repaid in full, unless the debt or interest payment is mandatory and due.**

However, the Eligible Borrower may, at the time of MSPLF loan origination, refinance existing debt owed by the Eligible Borrower to a lender that is not the Eligible Lender.

The Eligible Borrower cannot repay the principal balance of, or pay any interest on, any debt until the upsized tranche is repaid in full, unless the debt or interest payment is mandatory and due.**

The Eligible Borrower must commit that it will not seek to cancel or reduce any of its committed lines of credit with the Eligible Lender or any other lender.

Eligible Lenders may charge Eligible Borrowers an origination fee of up to 1% of the principal amount of the loan.

Eligible Lenders may charge Eligible Borrowers an origination fee of up to 1% of the principal amount of the loan.

Eligible Lenders may charge Eligible Borrowers an origination fee of up to 0.75% of the principal amount of the loan.

Eligible Lenders must pay the SPV a transaction fee of 1% of the principal amount of the loan. This fee may be passed on to borrowers.

Eligible Lenders must pay the SPV a transaction fee of 1% of the principal amount of the loan. This fee may be passed on to borrowers.

Eligible Lenders must pay the SPV a transaction fee of 0.75% of the principal amount of the upsized tranche of the loan at the time of the upsizing. This fee may be passed on to borrowers.

The SPV will pay an Eligible Lender 0.25% of the principal amount of the SPV’s participation per annum for loan servicing.

Must include a mandatory prepayment clause if the borrower breaches its Borrower Certifications and Covenants.

Must include a mandatory prepayment clause if the borrower breaches its Borrower Certifications and Covenants.

Must include, to the extent feasible in light of existing voting arrangements in existing multi-lender facilities, a mandatory prepayment clause if the borrower breaches its Borrower Certifications and Covenants.

Must include a cross-acceleration provision tied to Borrower default with respect to other indebtedness

Must include a cross-acceleration provision tied to Borrower default with respect to other indebtedness.

Must include a cross-acceleration provision.

For MSELF upsized tranches where the underlying loan is part of a multi-lender facility, any cross-default or cross-acceleration provision that was negotiated in good faith prior to April 24, 2020, as part of the underlying loan shall be deemed sufficient.

If secured, collateral should be described in accordance with the bank’s ordinary practices in its loan documentation.

If secured, collateral should be described in accordance with the bank’s ordinary practices in its loan documentation.

If secured, collateral should be described in accordance with the bank’s ordinary practices in its loan documentation.

Must include a quarterly financial reporting covenant requiring the financial information set out in Appendix C of the MSLP Frequently Asked Questions found here.

Must include a quarterly financial reporting covenant requiring the financial information set out in Appendix C of the MSLP Frequently Asked Questions found here.

Must include a quarterly financial reporting covenant requiring the financial information set out in Appendix C of the MSLP Frequently Asked Questions found here.

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