Examples of Maximum Annual Debt Service in a sentence
When calculating the Long-Term Debt Service Coverage Ratio, (i) capitalized interest shall not be counted as income unless it will be available and applied in the same year as the Maximum Annual Debt Service will occur, and (ii) payments to be made in respect of principal and interest on any revolving credit or similar agreement secured solely by a pledge of accounts receivable and inventory shall not be included in determining Maximum Annual Debt Service.
The Subsidiary Borrowers and Guarantors will maintain, as a consolidated group, as of the end of each fiscal quarter of such group for the 12-month period then ended, a Maximum Annual Debt Service and Lease Payment Coverage Ratio of at least 3.00 to 1.
Only for purposes of this paragraph, the Maximum Annual Debt Service on Debt that bears an adjustable interest rate, the interest rate during the first fiscal year of Borrower during which the Debt is outstanding shall be deemed to be 110% of the initial interest rate, and for each fiscal year thereafter, 110% of the average interest rate on the Debt during the last preceding fiscal year.