Delta Airlines 2006 Annual Report Download - page 140

1.4 Use of Proceeds.
Borrower shall utilize the proceeds of the Loans and Letters of Credit solely for the general corporate purposes of the Credit Parties.
1.5 Interest and Applicable Margins.
(a) Borrower shall pay interest to the Administrative Agent, for the ratable benefit of Lenders in accordance with the various Loans
being made by each Lender, in arrears on each applicable Interest Payment Date, at the following rates: (i) with respect to the Term Loan A, at the election of
Borrower, (A) the Index Rate plusthe Applicable Term A Index Margin per annum or (B) at the election of Borrower, the applicable LIBOR Rate plusthe
Applicable Term A LIBOR Margin per annum; (ii) with respect to the Term Loan B, at the election of Borrower, (A) the Index Rate plusthe Applicable Term
B Index Margin per annum or (B) the applicable LIBOR Rate plusthe Applicable Term B LIBOR Margin per annum; and (iii) with respect to the Term Loan
C, at the election of Borrower, (A) the Index Rate plusthe Applicable Term C Index Margin per annum or (B) the applicable LIBOR Rate plusthe Applicable
Term C LIBOR Margin per annum.
The applicable margins are as follows:
Applicable Term A Index Margin 2.00%
Applicable Term A LIBOR Margin 2.75%
Applicable Term B Index Margin 4.00%
Applicable Term B LIBOR Margin 4.75%
Applicable Term C Index Margin 6.75%
Applicable Term C LIBOR Margin 7.50%
(b) If any payment on any Loan becomes due and payable on a day other than a Business Day, the maturity thereof will be
extended to the next succeeding Business Day (except as set forth in the definition of LIBOR Period) and, with respect to payments of principal, interest
thereon shall be payable at the then applicable rate during such extension.
(c) All computations of interest shall be made by the Administrative Agent on the basis of a 360-day year (or, in the case of
interest calculated based on the Index Rate, a 365/366 day year), in each case for the actual number of days occurring in the period for which such interest is
payable. The Index Rate is a floating rate determined for each day. Each determination by the Administrative Agent of interest rates hereunder shall be
presumptive evidence of the correctness of such rates.
(d) So long as an Event of Default has occurred and is continuing under Section 8.1(a), or so long as any other Event of Default
has occurred and is continuing and at the election of any of (i) the Administrative Agent, (ii) the Requisite Term A Lenders, (iii) the Requisite Term B
Lenders or (iv) the Requisite Term C Lenders confirmed by written notice from the Administrative Agent to Borrower, (A) the interest rates applicable to the
Loans shall be increased by two percentage points (2%) per annum above the rates of interest otherwise applicable to such Loans hereunder (the “Default
Rate”), and (B) all other outstanding Obligations shall bear interest at the Default Rate applicable to the Term Loan C. Interest at the Default Rate shall accrue
from the initial date of such Event of Default until that Event of Default is cured or waived and shall be payable upon demand.
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