Debt to EBIT Clause Samples
Debt to EBIT. Commencing on the first day of the calendar quarter in which the first day of the 19th month following the Opening Date of the first store of Borrower occurs and measured on the last day of the calendar quarter in which such 19th month occurs and on the last day of each calendar quarter thereafter, the ratio of Borrower’s Debt to EBIT for such calendar quarter shall not exceed 16:1.0;
Debt to EBIT. A. Enter amount of Debt
B. Enter amount of Debt attributable to store locations open less than 19 months
C. Subtract B from A
D. Enter amount of net income for last three months (backing out income for stores less than 19 months old)
E. Enter amount of interest and taxes based upon income for last three months (backing out interest and taxes for stores less than 19 months old)
F. Add D plus E Ratio of C:F STANDARD 16.0 : 1.0 Compliance? Yes No