Indebtedness, Coverage and Net Worth Covenants Clause Samples

The Indebtedness, Coverage and Net Worth Covenants clause sets financial limits and requirements that a borrower must maintain during the term of a loan or credit agreement. Typically, this clause restricts the amount of debt a borrower can incur, requires the borrower to maintain certain financial ratios (such as debt service coverage or interest coverage), and mandates a minimum net worth threshold. By imposing these financial covenants, the clause helps protect the lender by ensuring the borrower remains financially stable and capable of repaying the loan, thereby reducing the lender's risk of default.
Indebtedness, Coverage and Net Worth Covenants. Permit or suffer: (a) as of any day, Consolidated Secured Debt less the outstanding principal balance under the REMIC Loan to exceed 15% of Total Value; (b) as of any day, Consolidated Total Indebtedness to exceed the lesser of (i) 45% of Total Value or (ii) 45% of Total Cost; (c) as of any day, the "tangible net worth" of the Consolidated Group, as determined and defined under GAAP, to be less than the sum of (i) eighty-five percent (85%) of the Consolidated Group's tangible net worth as of June 30, 1997 plus (ii) fifty percent (50%) of the aggregate proceeds received (net of customary related fees and expenses) in connection with any offering or sale after June 30, 1997 of equity interests in the Borrower or the Guarantors, whether common stock, preferred stock, limited partnership units or other forms of equity ownership; (d) as of the last day of any fiscal quarter, the ratio of (A) the sum of (i) Adjusted EBITDA of the Consolidated Group plus (ii) Ground Lease Expense to (B) Fixed Charges for such fiscal quarter to be less than 2.00 to 1; (e) as of the last day of any fiscal quarter, the ratio of Adjusted EBITDA of the Consolidated Group to Interest Expense for such fiscal quarter to be less than 2.5 to 1;
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Indebtedness, Coverage and Net Worth Covenants. Permit or suffer: (a) as of any day, the Tangible Net Worth of the Consolidated Group, to be less than the sum of (i) eighty percent (80%) of the Consolidated Group's Tangible Net Worth as of December 31, 2002 plus (ii) seventy-five percent (75%) of the aggregate proceeds received (net of customary related fees and expenses) in connection with any offering or sale after December 31, 2002 of equity interests in the Borrower or the Guarantors, whether common stock, preferred stock, limited partnership units or other forms of equity ownership; (b) as of any day, the ratio of (A) the sum of (i) Adjusted EBITDA for the most recent four quarters plus (ii) Ground Lease Expense for such period to (B) Fixed Charges for such period to be less than 1.45 to 1 for the period beginning with the Agreement Execution Date and ending December 31, 2003, and 1.50 to 1 thereafter; (c) as of any day, the ratio of Adjusted EBITDA of the Consolidated Group for the most recent four quarters to Interest Expense for such period to be less than 2.00 to 1 for the period from the Agreement Execution Date through December 31, 2004, 2.15 to 1 for the period from January 1, 2005 through December 31, 2005, and 2.25 to 1 thereafter.
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Indebtedness, Coverage and Net Worth Covenants. Permit or suffer: (a) as of any day, the Consolidated Group's Tangible Net Worth, plus accumulated depreciation, to be less than the sum of (i) eighty percent (80%) of the Consolidated Group's Tangible Net Worth, plus accumulated depreciation, as of December 31, 2004 plus (ii) seventy-five percent (75%) of the aggregate proceeds received (net of customary related fees and expenses) in connection with any offering or sale after December 31, 2004 of equity interests in the Borrower or the Guarantors, whether common stock, preferred stock, limited partnership units or other forms of equity ownership; (b) as of any day, the ratio of (A) the sum of (i) Adjusted EBITDA for the most recent four quarters plus (ii) Ground Lease Expense for such period to (B) Fixed Charges for such period to be less than 1.50 to 1;
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Indebtedness, Coverage and Net Worth Covenants. Permit or suffer: (a) as of any day, the Consolidated Group’s Tangible Net Worth, plus accumulated depreciation, to be less than the sum of (i) eighty percent (80%) of the Consolidated Group’s Tangible Net Worth, plus accumulated depreciation, as of December 31, 2005 plus (ii) seventy-five percent (75%) of the aggregate proceeds received (net of customary related fees and expenses) in connection with any offering or sale after December 31, 2005 of equity interests in the Borrower or the Guarantors, whether common stock, preferred stock, limited partnership units or other forms of equity ownership; (b) as of the last day of any fiscal quarter, Total Secured Indebtedness to exceed fifty percent (50%) of Total Asset Value, provided that such percentage may be up to fifty-five percent (55%) for up to two consecutive quarters once during the term of the Facility; (c) as of the last day of any fiscal quarter, Total Unsecured Indebtedness to exceed sixty percent (60%) of Unencumbered Asset Value, provided that for purposes of this Section 9.8 (c) only, Total Unsecured Indebtedness shall not include Indebtedness resulting from the issuance of Qualifying Trust Preferred Securities; (d) as of any day, Adjusted EBITDA derived from Unencumbered Assets to be less than 2.0 times Interest Expense associated with Total Unsecured Indebtedness; and (e) as of any day, the ratio of (A) the sum of (i) Adjusted EBITDA for the most recent four quarters plus (ii) Ground Lease Expense for such period to (B) Fixed Charges for such period to be less than 1.50 to 1.
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Related to Indebtedness, Coverage and Net Worth Covenants

  • Indebtedness Cross-Default (i) The Borrower, any other Obligor, or any of their respective Subsidiaries shall fail to pay when due and payable, the principal of, or interest on, any Indebtedness or obligations under Derivative Contracts (other than (A) the Obligations and (B) Nonrecourse Indebtedness) having an aggregate outstanding principal amount (or, in the case of any Derivatives Contract, the marked to market value of such Derivative Contract if the Borrower is out of the money) greater than or equal to $50,000,000 (all such Indebtedness or obligations under Derivative Contracts being “Material Indebtedness”); or (ii) (x) The maturity of any Material Indebtedness shall have been accelerated in accordance with the provisions of any indenture, contract or instrument evidencing, providing for the creation of or otherwise concerning such Material Indebtedness or (y) any Material Indebtedness shall have been required to be prepaid, redeemed, defeased or repurchased prior to the stated maturity thereof (which for the purposes hereof shall include any termination event or other event resulting in the settling of payments due under a Derivative Contract); or (iii) Any other event shall have occurred and be continuing which would permit any holder or holders of Material Indebtedness, any trustee or agent acting on behalf of such holder or holders or any other Person, to accelerate the maturity of any such Material Indebtedness or require any such Material Indebtedness to be prepaid or repurchased prior to its stated maturity (which for the purposes hereof shall include any termination event or other event resulting in the settling of payments due under a Derivative Contract).

  • COMPLIANCE WITH COVENANTS, RESTRICTIONS AND BUILDING CODE Lessor warrants that any improvements (other than those constructed by Lessee or at Lessee's direction) on or in the Premises which have been constructed or installed by Lessor or with Lessor's consent or at Lessor's direction shall comply with all applicable covenants or restrictions of record and applicable building codes, regulations and ordinances in effect on the Commencement Date. Lessor further warrants to Lessee that Lessor has no knowledge of any claim having been made by any governmental agency that a violation or violations of applicable building codes, regulations, or ordinances exist with regard to the Premises as of the Commencement Date. Said warranties shall not apply to any Alterations or Utility Installations (defined in Paragraph 7.3(a)) made or to be made by Lessee. If the Premises do not comply with said warranties, Lessor shall, except as otherwise provided in this Lease, promptly after receipt of written notice from Lessee given within six (6) months following the Commencement Date and setting forth with specificity the nature and extent of such non-compliance, take such action, at Lessor's expense, as may be reasonable or appropriate to rectify the non-compliance. Lessor makes no warranty that the Permitted Use in Paragraph 1.8 is permitted for the Premises under Applicable Laws (as defined in Paragraph 2.4).

  • Parent Covenants Except as otherwise provided below, during the time period from the Agreement Date until the earlier to occur of (a) the Effective Time or (b) the termination of this Agreement in accordance with the provisions of Article 9, Parent covenants and agrees with the Company as follows:

  • CONTINUING COVENANTS The Competitive Supplier agrees and covenants to perform each of the following obligations during the term of this ESA.

  • Interim Covenants (a) Except with the prior written consent of Purchaser (which consent shall not be unreasonably withheld, delayed or conditioned), as otherwise contemplated or permitted by this Agreement or as required by the Bankruptcy Code or other applicable Law, during the period prior to and up to Closing, Seller shall operate the Yu-Gi-Oh! Business in compliance in all material respects with all Laws applicable to the operation of its business. From the date hereof through the Closing Date, or as otherwise required by applicable Law, Seller shall use commercially reasonable efforts to: (i) maintain the Purchased Assets in a manner consistent with past practices, reasonable wear and tear excepted and maintain the types and levels of insurance currently in effect in respect of the Purchased Assets; (ii) preserve intact the Yu-Gi-Oh! Business, to keep available the services of its current employees and agents and to maintain its relations and goodwill with its suppliers, customers, distributors and any others with whom or with which it has business relations; (iii) upon any damage, destruction or loss to any Purchased Asset, apply any insurance proceeds received with respect thereto to the prompt repair, replacement and restoration thereof to the condition of such Purchased Asset before such event or, if required, to such other (better) condition as may be required by applicable Law; (iv) promptly advise Purchaser in writing of the occurrence of any event that has had, or would reasonably be expected to have, a Material Adverse Change; and (v) consult with Purchaser on all material aspects of the Yu-Gi-Oh! Business as may be reasonably requested from time to time by Purchaser, including, but not limited to, personnel, accounting and financial functions. (b) Except as otherwise contemplated or permitted by this Agreement or by applicable Law, during the period prior to and up to Closing, Seller shall not, without the prior written consent of Purchaser: (i) enter into, terminate or amend or reject any of the Transferred Agreements, or cancel, modify or waive any material claims held in respect of the Purchased Assets or waive any material rights of value; (ii) do any act or fail to do any act that will cause a material breach or default under any of the Transferred Agreements; (iii) sell, transfer or otherwise dispose of any of the Purchased Assets; (iv) modify any of its sales practices or receivables collections practices from those in place on the date hereof, including offering any discounts, incentives or other accommodations for early payment; (v) conduct any “going out of business,” liquidation, bankruptcy, or similar sales or take any action to fashion its business as going out of business, liquidating or closing; (vi) dispose of or fail to keep in effect any material rights in, to, or for the use of any of the Intellectual Property, except for rights which expire or terminate in accordance with their terms; (vii) subject any Purchased Assets to any Liens; (viii) enter into, or negotiate any licenses or grant any party any rights or license in any of the Purchased Assets; or (ix) authorize any of the foregoing, or commit or agree to take actions, whether in writing or otherwise, to do any of the foregoing. (c) Seller take all action to properly and timely (i) exercise its option for the next season of Yu-Gi-Oh! such that the expiration dates of the Yu-Gi-Oh! Grant Agreements at Closing shall be August 31, 2019 for broadcast and home video rights in the United States, August 31, 2020 for broadcast and home video rights in the territory described therein outside of the United States, and August 31, 2019 with respect to merchandising rights and (ii) make any required payments under the Yu-Gi-Oh Grant Agreements.