Interest Expense Coverage Sample Clauses
The Interest Expense Coverage clause defines the minimum ratio of a company's earnings to its interest expenses that must be maintained, typically as a financial covenant in loan agreements. This clause requires the borrower to demonstrate, often through periodic financial reporting, that its earnings are sufficient to cover interest payments by a specified multiple. By setting this standard, the clause helps lenders ensure the borrower's ongoing ability to service debt, thereby reducing the risk of default.
Interest Expense Coverage. The Borrower shall maintain at the end of each Fiscal Quarter, commencing with the Fiscal Quarter ending on March 31, 1998, a ratio of (a) Total Base Rents for such Fiscal Quarter to (b) Net Interest Expense for such Fiscal Quarter, of not less than 2:1.
Interest Expense Coverage. The ratio of Adjusted EBITDA to Interest Expense is not less than 2.10 to 1.
Interest Expense Coverage. The Company will not permit the ratio of
(a) Consolidated Adjusted Cash Flow for any period of four consecutive complete fiscal quarters of the Company to
(b) Consolidated Interest Expense for such period to be less than 2.50 to 1.00.
Interest Expense Coverage. The ratio of Adjusted EBITDA to Interest Expense for the then immediately preceding twelve (12) full calendar months shall not be less than 2.50 to 1.
Interest Expense Coverage. As at the last day of each fiscal quarter of the Borrower, permit the ratio of (i) EBITDA for the four fiscal quarter period ending on such date to (ii) Consolidated Interest Expense for the four fiscal quarter period ending on such date, to be less than (A) 1.50 to 1.00 for the fiscal quarter ending in March 1999 or (B) 2.50 to 1.00 for the fiscal quarter ending in June 1999 or (C) 3.00 to 1.00 for the fiscal quarter ending in September 1999 or (D) 3.50 to 1.00 for any fiscal quarter ending after September 1999.
Interest Expense Coverage. The Interest Expense Coverage as determined as of each Calculation Date shall be not less than 2.00:1. The Interest Expense Coverage covenant shall be tested by the Administrative Agent as of the Calculation Date with results based upon the results for the most recent Calculation Period, such calculation and results to be verified by the Administrative Agent.
Interest Expense Coverage. The Company will not permit the ratio of
(i) EBITDA for any period of four (4) consecutive fiscal quarters of the Company to
(ii) Consolidated Interest Expense for such period to be less than 2.75 to 1.00.
Interest Expense Coverage. The Company shall maintain Interest Expense Coverage of not less than the following amounts for the following periods of time:
(i) As of the end of the quarter ending 3/31/97, on a cumulative basis for the period commencing 4/1/96 and ending as of 3/31/97, not less than 1.50 to 1.0.
(ii) As of the end of each quarter from 4/1/97 until 12/31/97 on a rolling twelve month basis ending as of the last day of each such quarter during such period, not less than 1.50 to 1.0.
(iii) As of the end of the quarter ending 3/31/98 on a twelve month basis ending as of 3/31/98, not less than 1.70 to 1.0.
(iv) As of the end of each quarter from 4/1/98 until the termination of this Agreement on a rolling twelve month basis ending as of the last day of each such quarter during such period, not less than 2.25 to 1.0.
Interest Expense Coverage. Interest Expense Coverage, on a trailing twelve (12) Fiscal Month basis, shall not be less than 1.80 for the Fiscal Quarter ending March 31, 1998 and each Fiscal Quarter thereafter."
H. Subsection 6.5 is hereby amended by deleting subsection 6.5 in its entirety and inserting the following in lieu thereof:
Interest Expense Coverage. As of the end of each fiscal quarter and any other Calculation Date, Borrower shall provide evidence to Agent that the ratio of Adjusted EBITDA to Interest Expense is not less than 1.90 to 1.