Revolving Credit Agreement Template for Denmark

The Revolving Credit Agreement serves as a fundamental financing tool in the Danish market, providing businesses with flexible access to working capital and general corporate funding. This document is typically used when a borrower requires ongoing access to credit with the ability to draw down and repay funds multiple times within an agreed facility limit. The agreement must comply with Danish law requirements, including the Danish Credit Agreements Act and Financial Business Act, while also adhering to EU financial regulations. It contains detailed provisions covering facility terms, conditions for drawdown, interest calculations, repayment mechanisms, and various protections for both lender and borrower. The document is particularly suitable for businesses with fluctuating capital needs or seasonal working capital requirements, offering more flexibility than a traditional term loan.

1. Parties: Identification of the lender, borrower, and any other parties to the agreement

2. Background: Context of the agreement and brief description of the parties' intentions

3. Definitions and Interpretation: Definitions of key terms and interpretation rules used throughout the agreement

4. The Facility: Description of the revolving credit facility, including amount, purpose, and revolving nature

5. Conditions Precedent: Conditions that must be satisfied before the facility becomes available

6. Utilisation: Process and requirements for drawing down the facility

7. Repayment and Prepayment: Terms for regular repayment and voluntary/mandatory prepayment provisions

8. Interest: Interest rate, calculation methods, and payment terms

9. Fees: Commitment fees, arrangement fees, and other applicable charges

10. Tax Gross Up and Indemnities: Tax-related provisions and associated indemnities

11. Representations and Warranties: Borrower's representations and warranties

12. Information Undertakings: Borrower's obligations to provide financial and other information

13. General Undertakings: Borrower's general obligations and covenants

14. Events of Default: Circumstances constituting default and consequences

15. Changes to Parties: Provisions for transfer, assignment, and delegation

16. Payment Mechanics: Payment procedures, currencies, and set-off rights

17. Notices: Communication methods and contact details

18. Calculations and Certificates: Rules for calculations and validity of certificates

19. Governing Law and Jurisdiction: Danish law as governing law and jurisdiction provisions