Extract to table

15 of the Credit Agreement, TSL is required to maintain a minimum collateral coverage ratio of 140% of outstanding facility obligations at all times

Minimum Collateral Coverage Ratio — Contractual Requirement The near-final Credit Agreement dated July 3, 2023 establishes a minimum collateral coverage ratio that TSL must maintain at all times during the term of the Facility

removing the subject vessel's FMV from the numerator of the collateral coverage ratio calculation), the aggregate FMV of the remaining Mortgaged Vessels must be sufficient to maintain a minimum coverage ratio of 140% of then-outstanding facility obligations

If the coverage ratio would fall below 140% after giving pro forma effect to the proposed release, TSL must, contemporaneously with the release, prepay outstanding facility obligations in an amount sufficient to restore the coverage ratio to at least 140%

The mandatory prepayment must be accompanied by a corresponding reduction in commitments, unless the Credit Agreement otherwise provides

No Event of Default or Default (as each is defined in the Credit Agreement) shall have occurred and be continuing at the time of the requested release, or would result from the consummation of the release