Coverage Ratios Clause Samples
The Coverage Ratios clause defines specific financial metrics that a party, typically a borrower, must maintain to comply with an agreement. These ratios, such as interest coverage or debt service coverage, measure the party’s ability to meet its financial obligations by comparing earnings to debt-related payments. By setting minimum thresholds for these ratios, the clause helps ensure the financial stability of the party and provides early warning to the other party, often a lender, if financial health deteriorates, thereby managing credit risk and protecting against default.
Coverage Ratios in the event that, as of any Ratio Calculation Date,
(A) the Revenue Coverage Ratio for the most recent Calculation Period is equal to or less than 1.00 to 1.00 or (B) the Debt Service Coverage Ratio for the most recent Calculation Period is equal to or less than 1.50 to 1.00;
Coverage Ratios. The Loan Servicer shall have received, in form and substance satisfactory to each Relevant Credit Party, a certificate setting forth calculations, consistent with the Base Case Projections delivered pursuant to Section 4.1.4 indicating that throughout the term of the DOE Credit Facility a minimum annual Debt Service Coverage Ratio of 1.30 to 1 for the period after the Project Completion Date is expected to be achieved.
Coverage Ratios. Borrowers shall not permit (a) the Fixed Charge Coverage Ratio to be less than 2.00 to 1.00; and (b) the Interest Coverage Ratio to be less than 2.00 to 1.00.
Coverage Ratios. (a) If any Other Borrower Debt Agreement contains a Fixed Charge Coverage Ratio, the Borrower shall not permit the Fixed Charge Coverage Ratio on the last day of any fiscal quarter to be less than the ratio set forth in such Other Borrower Debt Agreement, which is 2.50 to 1.00 as of May 8, 2018.
(b) In the absence of a Fixed Charge Coverage Ratio in any Other Borrower Debt Agreement, the Borrower shall not permit the Interest Coverage Ratio on the last day of any fiscal quarter to be less than 3.00 to 1.00.”
(r) Section 7.6 of the Credit Agreement is hereby amended and restated in its entirety as follows:
Coverage Ratios. 14 Section 5.6
Coverage Ratios. The undertakings in this Clause 19 remain in force from the date of this Addendum until the Final Discharge Date.
Coverage Ratios. Section 8.3 of the Loan Agreement shall be amended and restated in its entirety as follows:
Coverage Ratios. 85 SECTION 6.10 Maximum Total Leverage Ratio......................................................... 85 SECTION 6.11 Minimum Net Worth.................................................................... 86 SECTION 6.12 Maximum Senior Secured Debt Ratio.................................................... 86 SECTION 6.13
Coverage Ratios. 26 5.8. Leverage Ratios.........................................................................27 5.9.
Coverage Ratios. 60 Section 5.19 Equity or Debt Offerings...................................................................61 Section 5.20 Minimum Asset Value........................................................................61 Section 5.21 Managers...................................................................................61 Section 5.22 Further Assurances.........................................................................61 Section 5.23 REIT Status................................................................................61 Section 5.24