Interest Coverage Ratio Clause Samples
The Interest Coverage Ratio clause sets a minimum threshold for a borrower's ability to meet interest payments on its debt, typically by requiring that earnings or cash flow exceed interest expenses by a specified multiple. In practice, this clause is often used in loan agreements or bond covenants, where the borrower must regularly demonstrate compliance by providing financial statements showing the ratio is maintained above the agreed level. Its core function is to protect lenders by ensuring the borrower remains financially stable and capable of servicing its debt, thereby reducing the risk of default.
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Interest Coverage Ratio. The Borrower will maintain, as of the end of each Fiscal Quarter, an Interest Coverage Ratio of not less than 2.00:1.00, determined for the period of the four consecutive preceding Fiscal Quarters ending on the date of determination.
Interest Coverage Ratio. The Borrower will not permit the Interest Coverage Ratio at the end of any fiscal quarter (calculated as of the end of each such fiscal quarter for the four-fiscal quarter period ending on such date) to be less than 3.00 to 1.00.
Interest Coverage Ratio. The Borrower will not permit the Interest Coverage Ratio to be less than 2.75 to 1.0 on the last day of any Fiscal Quarter.
Interest Coverage Ratio. The Company shall not permit its Interest Coverage Ratio to be less than 5.0 to 1.0 as of the last day of any fiscal quarter.
Interest Coverage Ratio. Permit the Interest Coverage Ratio as of the end of any fiscal quarter to be less than the ratio of 3.0 to 1.0.
Interest Coverage Ratio. The Borrower will not permit the Interest Coverage Ratio, as at the end of any Measurement Period, to be less than 2.50 to 1.00.
Interest Coverage Ratio. Permit the Interest Coverage Ratio as of the last day of any fiscal quarter to be less than 2.00 to 1.0.
Interest Coverage Ratio. The Company will not at any time permit the ratio of (a) Consolidated EBITDA to (b) Consolidated Interest Expense for each period of four consecutive fiscal quarters to be less than 2.75 to 1.0.
Interest Coverage Ratio. The Borrower will not, as of the last day of any fiscal quarter, permit its ratio of EBITDA for the period of four fiscal quarters then ending to Interest Expense for such period to be less than 2.5 to 1.0.
Interest Coverage Ratio. 76 SECTION 6.12.