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Alternative Interest Rate
Definition
Any alternative interest rate. This is not the primary rate under the loan but one that is only used in agreed circumstances (such as if the primary rate becomes unavailable, illegal or cost inefficient for the lenders).
Example
"Alternate Base Rate" shall mean, for any day, a rate per annum equal to the greater of (a) the US Prime Rate in effect on such day, (b) the Federal Funds Effective Rate in effect on such day plus 1/2 of 1%, (c) a rate reasonably determined by the Administrative Agent to be equal to the LIBO Rate for a one month Interest Period in effect on such day (or if such day is not a Business Day, the immediately preceding Business Day) plus 1.00% and (d) solely with respect to the Initial Term Loans, 2.00% per annum.