Debt/EBITDA Ratio Clause Samples
The Debt/EBITDA Ratio clause sets a financial covenant that limits the amount of debt a company can carry relative to its earnings before interest, taxes, depreciation, and amortization (EBITDA). Typically, this clause requires the company to maintain its total debt below a specified multiple of its EBITDA, which is periodically tested, such as at the end of each fiscal quarter. By imposing this restriction, the clause helps ensure the company remains financially stable and capable of meeting its debt obligations, thereby protecting lenders from excessive credit risk.
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Debt/EBITDA Ratio. Adjusted Debt less excluded items as of Statement Date:
Debt/EBITDA Ratio. The Debt/EBITDA Ratio to exceed the ratio specified below: Date Ratio Through March 1, 2003 3.00 After March 1, 2003 through February 28, 2004 2.75 After February 28, 2004 2.50
Debt/EBITDA Ratio. Maintain a ratio of Consolidated Debt to Consolidated EBITDA for the period of twelve months most recently ended on or prior to the last day of each fiscal quarter set forth below of not greater than the ratio set forth opposite such fiscal quarter end below: September 30, 2004 4.75 to 1 December 31, 2004 4.50 to 1 March 31, 2005 4.25 to 1 June 30, 2005 4.25 to 1 September 30, 2005 4.00 to 1 December 31, 2005 3.75 to 1 Each fiscal quarter end after December 31, 2005 3.50 to 1
Debt/EBITDA Ratio. FIL shall not permit its Debt/EBITDA Ratio as of the last day of any fiscal quarter to exceed 4.00:1.00.
Debt/EBITDA Ratio. Maintain at all times a Debt/EBITDA Ratio of not more than the amount set forth below for each Measurement Period set forth below: June 30, 2006 3.50:1.00 September 30, 2006 3.50:1.00 December 31, 2006 3.50:1.00 March 31, 2007 3.00:1.00 June 30, 2007 3.00:1.00 September 30, 2007 3.00:1.00 December 31, 2007 3.00:1.00 March 31, 2008 and thereafter 2.50:1.00
Debt/EBITDA Ratio. FIL shall not permit its Debt/EBITDA Ratio to be greater than 3.25 to 1.00 for any consecutive four-quarter period ending on the last day of any fiscal quarter.
Debt/EBITDA Ratio. Total Indebtedness at Statement Date: $
Debt/EBITDA Ratio. Maintain at the end of each fiscal quarter of the Parent a Debt/EBITDA Ratio not greater than 3.25 to 1.00.
Debt/EBITDA Ratio. At the end of each Fiscal Quarter ending during each period set forth below, the Debt/EBITDA Ratio will not be higher than the ratio set forth opposite such period below: PERIOD RATIO ------ ----- End of first three Fiscal Quarters of Fiscal 1998 4.50 to 1 End of fourth Fiscal Quarter of Fiscal 1998 through end of third 4.25 to 1 Fiscal Quarter of Fiscal 1999 End of fourth Fiscal Quarter of Fiscal 1999 and thereafter 3.75 to 1
Debt/EBITDA Ratio. The Debt/EBITDA Ratio exceeds 3.00:1.00 as at the end of any fiscal quarter of the Parent.