GLOSSARY

Basket definition

What does Basket mean?

The term 'basket' typically refers to flexibility built into negative undertakings in the facilities agreement which allows the borrowing group to take the action restricted by the relevant undertaking (eg incurring debt or making acquisitions) up to the level specified in the 'basket'. Where there is a specified cap on the amount of eg additional debt that can be incurred annually or over the life of the facilities, this is known as a 'hard cap' basket. Where the cap can change with reference to a variable such as EBITDA or is capable of growing depending on the performance of the business, this is known as a 'soft cap' basket.

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