Common use of Debt Coverage Clause in Contracts

Debt Coverage. The Borrower will maintain on a consolidated basis as of the end of each fiscal year a ratio of (earnings + interest expense + depreciation + amortization) to (interest expense + current maturity of long term debt + capital lease payments) of not less than 1.4 to 1.0.

Appears in 2 contracts

Sources: Line of Credit Loan Agreement (Zevex International Inc), Line of Credit Loan Agreement (Zevex International Inc)

Debt Coverage. The Borrower will maintain on a consolidated basis as of the end of each fiscal year a ratio of (earnings + before interest expense + depreciation + amortization) to less unrealized gains/(losses) on securities, divided by the sum of (interest expense + current maturity maturities of long term debt + and capital lease paymentspayments and interest expense) of not less than 1.4 to 1.0.

Appears in 1 contract

Sources: Modification Agreement (Zevex International Inc)