Debt Servicing Clause Samples
The Debt Servicing clause outlines the obligations and procedures for making payments on outstanding debt under an agreement. It typically specifies the schedule, method, and priority of payments, as well as any requirements for maintaining sufficient funds to meet debt obligations. For example, it may require the borrower to make monthly principal and interest payments and restrict the use of funds until debt payments are satisfied. The core function of this clause is to ensure that debt obligations are met in a timely and orderly manner, thereby protecting the interests of lenders and maintaining financial discipline.
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Debt Servicing. CFADS to Debt Service Liability for each financial year must be at least 10.00 to 1.
Debt Servicing. EBITDA to Debt Service Liability for each financial year must be at least 10.00 to 1.
Debt Servicing. Adjusted EBITDA to Debt Service Liability for each financial year must be at least 10.00 to 1. Minimum EBITDA: EBITDA for each financial year must be at least £100. Gross Leverage: Gross Borrowings to EBITDA for each financial year must not exceed 10.00 to 1. Net Leverage: Net Borrowings to EBITDA for each financial year must not exceed 10.00 to 1.
Debt Servicing dividends and share buyback