MAC

material adverse change (MAC)

USA

This term has a number of meanings. In the context of:

• Finance. A term of art used as a threshold to measure the effect of some event. The language may vary slightly, but a typical definition is:

"a material adverse change in the business, assets, properties, liabilities (actual or contingent), operations, condition (financial or otherwise) or prospects, of the Borrower, individually, or the Borrower and its Subsidiaries taken as a whole."

Used primarily as a condition precedent to funding in commitment letters and loan agreements and may also constitute an event of default under the loan agreement. Often used interchangeably with the term "material adverse effect" although the definition of material adverse effect should be used when qualifying representations and warranties, covenants and other terms of the loan documents since it is more extensive. See also material adverse effect.