Interest Expense definition: Copy, customize, and use instantly
Introduction
The term "Interest Expense" refers to the cost incurred by an individual or entity for borrowing funds. It is typically calculated based on the principal amount of the loan and the applicable interest rate and is often recorded as a financial obligation in accounting and financial statements. Interest expense is commonly referenced in loan agreements, financial covenants, and other financial documents to track and manage the cost of debt.
Below are various examples of how "Interest Expense" can be defined in different contexts. Copy the one that fits your needs, customize it, and use it in your contract.
Definition of "Interest Expense" in loan agreements
This definition ties "Interest Expense" to the cost of borrowing.
"Interest Expense" means the aggregate amount of interest accrued or payable on all outstanding indebtedness under this agreement, calculated at the applicable interest rate.
Definition of "Interest Expense" in financial covenants
This definition connects "Interest Expense" to debt servicing metrics.
"Interest Expense" refers to the total amount of interest incurred by the borrower during the applicable period, as determined under Generally Accepted Accounting Principles (GAAP).
Definition of "Interest Expense" in tax reporting
This definition links "Interest Expense" to deductible costs.
"Interest Expense" includes all interest payments made on indebtedness, which may be eligible for tax deduction under applicable laws and regulations.
Definition of "Interest Expense" in bond agreements
This definition applies "Interest Expense" to bondholder obligations.
"Interest Expense" means the cost incurred by the issuer in the form of interest payments to bondholders, as specified in the terms of the bonds.
Definition of "Interest Expense" in capital lease agreements
This definition ties "Interest Expense" to lease obligations.
"Interest Expense" means the portion of lease payments that represents interest on the outstanding lease liability, as determined under applicable accounting standards.
Definition of "Interest Expense" in subordinated debt agreements
This definition connects "Interest Expense" to subordinated obligations.
"Interest Expense" refers to the cost incurred by the borrower in the form of interest payments on subordinated debt, calculated according to the terms of the agreement.
Definition of "Interest Expense" in intercompany loan agreements
This definition links "Interest Expense" to related-party financing.
"Interest Expense" includes any interest accrued or paid by the borrower on intercompany loans, as recorded in the borrower’s financial statements.
Definition of "Interest Expense" in revolving credit facilities
This definition ties "Interest Expense" to variable borrowing costs.
"Interest Expense" means the cost of borrowing under the revolving credit facility, calculated based on the applicable interest rate and the outstanding principal amount.
Definition of "Interest Expense" in financial performance metrics
This definition connects "Interest Expense" to profitability analysis.
"Interest Expense" refers to the total amount of interest incurred by the entity during the measurement period, used for calculating financial ratios such as interest coverage.
Definition of "Interest Expense" in bridge loan agreements
This definition links "Interest Expense" to short-term financing.
"Interest Expense" includes all interest costs incurred on the bridge loan, calculated at the specified rate and accrued until repayment.
Definition of "Interest Expense" in cross-border financing agreements
This definition ties "Interest Expense" to international borrowing costs.
"Interest Expense" means the aggregate interest payable on cross-border loans, adjusted for any applicable foreign exchange or tax considerations.
Definition of "Interest Expense" in mezzanine financing agreements
This definition connects "Interest Expense" to hybrid debt instruments.
"Interest Expense" refers to the cost incurred on mezzanine debt, including cash interest, payment-in-kind (PIK) interest, or other forms of compensation for the lender.
Definition of "Interest Expense" in project finance agreements
This definition links "Interest Expense" to infrastructure financing.
"Interest Expense" includes all interest costs associated with project-specific loans, calculated based on the terms of the project finance agreements.
Definition of "Interest Expense" in syndicated loan agreements
This definition ties "Interest Expense" to multi-lender facilities.
"Interest Expense" refers to the total cost of borrowing under the syndicated loan facility, allocated among the participating lenders according to the agreement.
Definition of "Interest Expense" in tax allocation agreements
This definition connects "Interest Expense" to intercompany tax considerations.
"Interest Expense" includes all interest costs incurred on loans or advances subject to tax-sharing arrangements, calculated in accordance with the group’s tax allocation policy.
Definition of "Interest Expense" in distressed debt agreements
This definition links "Interest Expense" to restructured obligations.
"Interest Expense" refers to the interest cost incurred on distressed or restructured debt, calculated at the renegotiated rates or terms under this agreement.
Definition of "Interest Expense" in corporate bond indentures
This definition ties "Interest Expense" to bondholder obligations.
"Interest Expense" means the total interest paid or accrued on corporate bonds issued under the indenture, as specified in the bond terms.
Definition of "Interest Expense" in operating lease agreements
This definition connects "Interest Expense" to lease accounting.
"Interest Expense" includes the financing cost component of lease payments recognized in accordance with applicable accounting standards for operating leases.
Definition of "Interest Expense" in green bond financing
This definition links "Interest Expense" to sustainability-linked debt.
"Interest Expense" means the total interest paid or accrued on green bonds, with costs allocated to financing environmentally sustainable projects.
Definition of "Interest Expense" in margin loan agreements
This definition ties "Interest Expense" to leveraged financing.
"Interest Expense" refers to the cost of borrowing funds under a margin loan facility, calculated based on the outstanding loan balance and applicable interest rate.
Definition of "Interest Expense" in high-yield debt agreements
This definition connects "Interest Expense" to speculative-grade bonds.
"Interest Expense" means the cost incurred on high-yield bonds, typically at higher interest rates due to the increased risk profile of the borrower.
Definition of "Interest Expense" in construction financing agreements
This definition links "Interest Expense" to project development costs.
"Interest Expense" includes all interest costs accrued on construction loans, calculated from the loan disbursement date until project completion or refinancing.
Definition of "Interest Expense" in leveraged buyout (LBO) agreements
This definition ties "Interest Expense" to acquisition financing.
"Interest Expense" refers to the total cost of debt incurred in connection with a leveraged buyout, including interest on senior, mezzanine, and subordinated debt.
Definition of "Interest Expense" in export credit agreements
This definition connects "Interest Expense" to trade finance.
"Interest Expense" includes all interest costs incurred on loans or credit facilities provided for export transactions, calculated according to the terms of the export credit agreement.
Definition of "Interest Expense" in default scenarios
This definition ties "Interest Expense" to defaulted debt obligations.
"Interest Expense" means the accrued or unpaid interest on debt obligations in default, calculated in accordance with the applicable default interest rate and terms.
Definition of "Interest Expense" in hybrid financing agreements
This definition connects "Interest Expense" to hybrid instruments.
"Interest Expense" refers to the cost incurred on hybrid financial instruments, including subordinated and convertible debt, as determined under the terms of this agreement.
Definition of "Interest Expense" in escrow funding agreements
This definition links "Interest Expense" to escrowed amounts.
"Interest Expense" includes all interest costs associated with funds held in escrow accounts, calculated at the agreed-upon escrow interest rate.
Definition of "Interest Expense" in operating expense agreements
This definition ties "Interest Expense" to operational debt.
"Interest Expense" refers to the interest incurred on operational loans or lines of credit used to fund day-to-day business activities.
Definition of "Interest Expense" in multi-currency loan agreements
This definition connects "Interest Expense" to currency-specific borrowing.
"Interest Expense" means the total interest accrued on multi-currency loans, calculated based on the applicable interest rates for each currency in which the loan is denominated.
Definition of "Interest Expense" in equipment financing agreements
This definition links "Interest Expense" to leased equipment.
"Interest Expense" includes the financing cost component of payments under equipment financing agreements, as specified in the contract terms.
Definition of "Interest Expense" in energy project finance
This definition ties "Interest Expense" to renewable and non-renewable energy projects.
"Interest Expense" refers to all interest costs incurred on loans used to finance energy-related projects, calculated in accordance with the loan agreement terms.
Definition of "Interest Expense" in deferred interest agreements
This definition connects "Interest Expense" to delayed payment structures.
"Interest Expense" includes any interest accrued but not payable until a specified future date, as outlined in the deferred payment terms of the agreement.
Definition of "Interest Expense" in distressed asset acquisitions
This definition links "Interest Expense" to the cost of financing distressed assets.
"Interest Expense" means the total interest incurred on loans or credit facilities used to finance the acquisition of distressed assets.
Definition of "Interest Expense" in sovereign debt agreements
This definition ties "Interest Expense" to government borrowing.
"Interest Expense" refers to the interest payments made by sovereign entities on their debt obligations, as calculated under the terms of the loan or bond agreements.
Definition of "Interest Expense" in trade finance agreements
This definition connects "Interest Expense" to export and import financing.
"Interest Expense" means the cost incurred on credit facilities or loans provided to support trade transactions, calculated in accordance with the terms of the agreement.
Definition of "Interest Expense" in bullet loan agreements
This definition links "Interest Expense" to loans with balloon payments.
"Interest Expense" includes the accrued interest on bullet loans, where repayment of the principal and interest occurs in a lump sum at maturity.
Definition of "Interest Expense" in asset-backed securities (ABS)
This definition ties "Interest Expense" to structured finance instruments.
"Interest Expense" refers to the interest incurred on securities backed by assets, calculated based on the underlying cash flow generated by the asset pool.
Definition of "Interest Expense" in regulatory compliance reporting
This definition connects "Interest Expense" to financial disclosures.
"Interest Expense" means the total cost of interest incurred by the entity during the reporting period, as disclosed in compliance with regulatory requirements.
Definition of "Interest Expense" in liquidity management agreements
This definition links "Interest Expense" to short-term funding.
"Interest Expense" refers to the interest incurred on short-term credit facilities or overdrafts used for liquidity management purposes.
Definition of "Interest Expense" in sustainable finance agreements
This definition ties "Interest Expense" to green and social bonds.
"Interest Expense" includes the total interest paid or accrued on sustainable finance instruments, such as green bonds, issued to fund environmentally or socially beneficial projects.
Definition of "Interest Expense" in leveraged finance agreements
This definition connects "Interest Expense" to acquisition financing.
"Interest Expense" means the aggregate interest costs incurred on loans or credit facilities used to finance leveraged buyouts or acquisitions.
Definition of "Interest Expense" in peer-to-peer lending agreements
This definition links "Interest Expense" to alternative lending platforms.
"Interest Expense" refers to the interest costs incurred on loans obtained through peer-to-peer lending platforms, calculated at the applicable interest rate.
Definition of "Interest Expense" in recapitalization agreements
This definition ties "Interest Expense" to restructuring scenarios.
"Interest Expense" includes the interest costs incurred on new or restructured debt issued as part of a recapitalization process.
Definition of "Interest Expense" in joint venture agreements
This definition connects "Interest Expense" to shared project financing.
"Interest Expense" refers to the total interest costs incurred on debt financing obtained by a joint venture, allocated among the venture partners as specified in the agreement.
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.