Common use of Borrowing Base Covenant Clause in Contracts

Borrowing Base Covenant. At any time after (i) any assets of a type that would constitute Collateral have been pledged by any Subsidiary to any Person financing a transaction permitted under Section 5.02(f)(vii) or (ii) the Borrower has elected to designate a newly-formed or newly-acquired Subsidiary as an Excluded Subsidiary as permitted under Section 5.01(j), then, the Borrower shall not permit at any time thereafter the aggregate of (x) 85% of the book value of the accounts receivable that constitute Collateral and (y) 65% of the book value of the inventory that constitutes Collateral to be less than the sum of (A) the aggregate principal amount outstanding under the Revolving Credit Facility at such time (including outstanding Letters of Credit and Swing Line Advances) plus (B) the aggregate amount of obligations outstanding under Secured Cash Management Agreements at such time plus (C) the aggregate Agreement Value of all Secured Hedge Agreements at such time.