Make-Whole Amount definition: Copy, customize, and use instantly
Introduction
The "Make-Whole Amount" refers to a predetermined sum paid to compensate for the early repayment of a debt or financial instrument. This amount is designed to cover any loss the lender may incur due to the borrower paying off the loan before its maturity date, typically including interest that would have been earned. The make-whole amount ensures that lenders or investors are financially whole, regardless of the premature repayment.
Below are various examples of how "Make-Whole Amount" can be defined in different contexts. Copy the one that fits your needs, customize it, and use it in your contract.
Definition of "Make-Whole Amount" in loan agreements
This definition ties "Make-Whole Amount" to the context of early loan repayment.
"Make-Whole Amount" refers to the sum payable by the borrower in the event of early repayment, calculated to make the lender whole by compensating for any lost interest or other financial returns due to the prepayment.
Definition of "Make-Whole Amount" in debt refinancing
This definition connects "Make-Whole Amount" to debt refinancing scenarios.
"Make-Whole Amount" means the amount required to fully compensate the lender for the early termination of a debt agreement, ensuring the lender is reimbursed for any lost interest payments.
Definition of "Make-Whole Amount" in bond issuances
This definition links "Make-Whole Amount" to bond issuance terms.
"Make-Whole Amount" refers to the amount payable to bondholders when the issuer redeems the bonds before the maturity date, typically including the present value of future interest payments.
Definition of "Make-Whole Amount" in credit agreements
This definition connects "Make-Whole Amount" to credit facility agreements.
"Make-Whole Amount" means the sum paid to the lender when the borrower repays the outstanding balance of the credit facility before the agreed-upon maturity, including any anticipated interest due.
Definition of "Make-Whole Amount" for early prepayment penalties
This definition ties "Make-Whole Amount" to prepayment penalties.
"Make-Whole Amount" refers to the penalty amount due to the lender or investor when the borrower makes an early repayment of the loan, calculated to cover lost interest income over the remaining term.
Definition of "Make-Whole Amount" for mortgage loans
This definition applies "Make-Whole Amount" to early repayment of mortgage loans.
"Make-Whole Amount" means the amount a borrower must pay in the case of an early repayment of a mortgage loan, covering any interest that would have been paid if the loan had remained outstanding until maturity.
Definition of "Make-Whole Amount" in investment agreements
This definition ties "Make-Whole Amount" to investment-related agreements.
"Make-Whole Amount" refers to the sum payable by the issuer in the event of early repayment of the investment, compensating investors for the potential interest earnings lost due to early termination.
Definition of "Make-Whole Amount" in corporate financing
This definition links "Make-Whole Amount" to corporate financing arrangements.
"Make-Whole Amount" means the total amount payable to the lender or bondholder when the company repays its debt ahead of schedule, accounting for the present value of any future interest payments that would have been earned.
Definition of "Make-Whole Amount" in syndicated loans
This definition connects "Make-Whole Amount" to syndicated loan agreements.
"Make-Whole Amount" refers to the payment made by the borrower to the syndicate of lenders in the event of an early repayment of a syndicated loan, covering lost interest payments.
Definition of "Make-Whole Amount" for callable securities
This definition ties "Make-Whole Amount" to callable securities.
"Make-Whole Amount" means the amount payable to the holder of callable securities upon early redemption by the issuer, designed to compensate the investor for the loss of future interest payments.
Definition of "Make-Whole Amount" in capital markets
This definition connects "Make-Whole Amount" to capital market transactions.
"Make-Whole Amount" refers to the amount that the issuer must pay to the bondholder if the issuer chooses to redeem bonds early, designed to ensure the investor is compensated for any lost interest.
Definition of "Make-Whole Amount" in securities offerings
This definition applies "Make-Whole Amount" to securities offerings.
"Make-Whole Amount" refers to the payment due to a security holder when the issuer repurchases the security before the maturity date, ensuring the holder is made whole for any lost future interest payments.
Definition of "Make-Whole Amount" for loans with prepayment options
This definition connects "Make-Whole Amount" to loans with prepayment options.
"Make-Whole Amount" means the amount that must be paid to compensate the lender for any potential losses due to the borrower’s prepayment of the loan, covering interest that would have been earned.
Definition of "Make-Whole Amount" in financing agreements
This definition ties "Make-Whole Amount" to various financing agreements.
"Make-Whole Amount" refers to the agreed-upon amount paid to the lender upon early repayment of a loan or other financing arrangement, compensating for lost interest and investment returns.
Definition of "Make-Whole Amount" for early termination of debt instruments
This definition connects "Make-Whole Amount" to early termination provisions.
"Make-Whole Amount" means the sum required to compensate the lender or investor when the borrower terminates a debt instrument before the maturity date, covering future interest payments.
Definition of "Make-Whole Amount" for high-yield bonds
This definition ties "Make-Whole Amount" to high-yield bond agreements.
"Make-Whole Amount" refers to the amount payable to bondholders in the event of early redemption of high-yield bonds, ensuring that bondholders are compensated for the higher interest payments they would have otherwise received.
Definition of "Make-Whole Amount" for private placements
This definition connects "Make-Whole Amount" to private placements.
"Make-Whole Amount" means the amount payable to investors in a private placement if the issuer redeems the securities before their maturity, including compensation for lost interest.
Definition of "Make-Whole Amount" in terms of future earnings
This definition links "Make-Whole Amount" to future earnings in a loan.
"Make-Whole Amount" refers to the sum required to fully compensate the lender or bondholder for the loss of future earnings in the event of early loan repayment.
Definition of "Make-Whole Amount" for callable bonds
This definition applies "Make-Whole Amount" to callable bonds.
"Make-Whole Amount" refers to the amount due to the bondholder if the issuer calls the bond before maturity, ensuring that the bondholder is compensated for the future interest that would have been paid.
Definition of "Make-Whole Amount" in asset-backed securities
This definition connects "Make-Whole Amount" to asset-backed securities.
"Make-Whole Amount" refers to the payment made to investors in asset-backed securities if the issuer repays the securities early, designed to compensate for the anticipated return on investment that would have been earned over time.
Definition of "Make-Whole Amount" for revolving credit facilities
This definition ties "Make-Whole Amount" to revolving credit arrangements.
"Make-Whole Amount" means the amount the borrower must pay upon early termination or repayment of a revolving credit facility, including compensation for lost interest income to the lender.
Definition of "Make-Whole Amount" for swap agreements
This definition connects "Make-Whole Amount" to swap agreements.
"Make-Whole Amount" refers to the amount payable under a swap agreement if the transaction is terminated early, designed to compensate the counterparty for any anticipated losses from interest rate differentials.
Definition of "Make-Whole Amount" in financial restructuring
This definition ties "Make-Whole Amount" to financial restructuring.
"Make-Whole Amount" refers to the amount payable to creditors in a restructuring situation, designed to compensate for losses from early repayment or refinancing of debt.
Definition of "Make-Whole Amount" in bank loans
This definition connects "Make-Whole Amount" to bank loans.
"Make-Whole Amount" means the amount due to a bank if a borrower repays a loan ahead of schedule, including the lost interest and any other associated costs due to the early repayment.
Definition of "Make-Whole Amount" for distressed debt
This definition links "Make-Whole Amount" to distressed debt situations.
"Make-Whole Amount" refers to the amount payable to a creditor in a distressed debt scenario, compensating for early repayment or restructuring losses that would otherwise have accrued.
Definition of "Make-Whole Amount" in the context of bankruptcy
This definition applies "Make-Whole Amount" to bankruptcy proceedings.
"Make-Whole Amount" refers to the sum required to compensate creditors for any losses arising from early repayment of debt during a bankruptcy proceeding.
Definition of "Make-Whole Amount" in structured finance
This definition ties "Make-Whole Amount" to structured finance products.
"Make-Whole Amount" means the sum required to compensate investors in structured finance products for early repayment of securities, ensuring investors are made whole for future expected earnings.
Definition of "Make-Whole Amount" in loan acceleration clauses
This definition connects "Make-Whole Amount" to loan acceleration clauses.
"Make-Whole Amount" refers to the amount required to settle a loan in the event of an acceleration clause being triggered, compensating the lender for the full loss of interest.
Definition of "Make-Whole Amount" in the context of bond redemption
This definition applies "Make-Whole Amount" to bond redemption.
"Make-Whole Amount" means the sum payable to bondholders when a bond is redeemed before maturity, accounting for lost interest and any premium above face value.
Here are 4 additional unique examples for the CLIB term "Make-Whole Amount":
Definition of "Make-Whole Amount" in debt repayment
This definition links "Make-Whole Amount" to debt repayment clauses.
"Make-Whole Amount" refers to the total sum required to be paid to a bondholder or lender upon early repayment of debt, ensuring they receive the full value of expected interest payments.
Definition of "Make-Whole Amount" in loan agreements
This definition connects "Make-Whole Amount" to loan agreements.
"Make-Whole Amount" is the amount a borrower must pay to compensate a lender for the early termination of a loan, calculated to cover the lost interest payments.
Definition of "Make-Whole Amount" in financial contracts
This definition applies "Make-Whole Amount" to financial contracts.
"Make-Whole Amount" means the compensation due to the lender in the event of an early termination or prepayment of a loan, ensuring the lender receives the present value of the remaining interest payments.
Definition of "Make-Whole Amount" in bond issuances
This definition ties "Make-Whole Amount" to bond issuance terms.
"Make-Whole Amount" refers to the payment made by the issuer of a bond when redeeming the bond before maturity, calculated to make the bondholder whole for any interest lost due to early redemption.
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.