Leverage Coverage Ratio Sample Clauses
The Leverage Coverage Ratio clause defines a financial metric used to assess a borrower's ability to meet its debt obligations by comparing its earnings or cash flow to its outstanding debt. Typically, this clause specifies how the ratio is calculated, such as dividing EBITDA by total debt service, and may set minimum ratio requirements that the borrower must maintain throughout the term of a loan. Its core practical function is to provide lenders with a safeguard by ensuring the borrower maintains sufficient financial health, thereby reducing the risk of default.
Leverage Coverage Ratio. A. Total Debt $____________ B. Hedging Obligations $____________ C. Consolidated Debt (Item A minus Item B) $____________ D. Consolidated Net Worth $____________ E. Intangible Assets $____________ F. Capitalized Expenses $____________ G. Tangible Net Worth (Item D minus E minus F) $____________ H. Item C plus Item G $____________ I. Ratio of Item C to Item H ____________% Item I is not permitted to exceed 30%
Leverage Coverage Ratio. Convertible debt to annualized quarterly earnings before interest, taxes, depreciation and amortization not to exceed 25 to 1, beginning first fiscal quarter 2008 (September 30, 2007); not to exceed 20 to 1, beginning the first quarter 2009 (September 30, 2008). No Event of Default shall be deemed to have occurred pursuant to the provisions of this Section 10.17(a) until the required ratios have not been met for two consecutive fiscal quarters.
Leverage Coverage Ratio. The ratio of Total Funded Indebtedness divided by EBITDA, determined as at the end of each fiscal quarter for the preceding twelve month period, shall not exceed 1.25 to 1.00.
Leverage Coverage Ratio. Section 9.3 of the Credit Agreement is amended by amending and restating such Section 9.3 in its entirety to read as follows: