Maximum Consolidated Net Leverage Ratio Clause Samples
The Maximum Consolidated Net Leverage Ratio clause sets a limit on the amount of debt a company can have relative to its earnings, typically measured as a ratio of total net debt to EBITDA. In practice, this clause requires the borrower to maintain its net leverage below a specified threshold, which is periodically tested, often quarterly, based on financial statements. Its core function is to ensure the borrower does not become over-leveraged, thereby protecting lenders by reducing the risk of default due to excessive debt.
Maximum Consolidated Net Leverage Ratio. As at the end of any fiscal quarter, the Borrowers shall not permit the Consolidated Net Leverage Ratio for the period of four (4) consecutive fiscal quarters then ending to exceed 4:00 to 1.00: ; provided that if a Permitted Acquisition or a series of Permitted Acquisitions with aggregate consideration (including cash deferred payments, contingent or otherwise, and the aggregate amount of all Indebtedness assumed or, in the case of an acquisition of Equity Interests, including all Indebtedness of the target company) of more $25,000,000 occurs during a fiscal quarter ending on or after the Closing Date, the Borrowers shall have the right to elect to increase the maximum permitted Consolidated Net Leverage Ratio in effect at such time by 0.50x (to no greater than 4.50x to 1.00), during such fiscal quarter and the subsequent three fiscal quarters (each such period, an “Elevated Leverage Ratio Period”); provided, that (x) there shall be no more than one Elevated Leverage Ratio Period in effect at any given time, and (y) there shall be at least one fiscal quarter during which the maximum Permitted Consolidated Net Leverage Ratio is 4.00 to 1.00 between Elevated Leverage Ratio Periods. Notwithstanding the foregoing, solely for the purposes of calculating the Consolidated Net Leverage Ratio pursuant to this Section 7.11(b), Excluded Interim Debt shall not be included in Consolidated Funded Debt during any period in which (and for so long as) such Excluded Interim Debt is properly designated as and qualifies as Excluded Interim Debt under and in accordance with Section 7.03.
Maximum Consolidated Net Leverage Ratio. The Parent and its Subsidiaries shall not have, commencing with the Fiscal Quarter ended March 31, 2017, a Consolidated Net Leverage Ratio greater than 3.00 to 1.00 for any Fiscal Quarter ending on or subsequent to March 31, 2017 for the Test Period then-ended.
Maximum Consolidated Net Leverage Ratio. Commencing with the first full fiscal quarter ending after the Closing Date, permit the Parent’s (or, if the financial statements delivered pursuant to Section 6.01(a) or Section 6.01(b) for such fiscal quarter is in respect of the Public Parent, the Public Parent’s) ratio of Consolidated Net Debt as of such day to Consolidated EBITDAX for the four fiscal quarter period ending on such day to exceed 4.00 to 1.00.
Maximum Consolidated Net Leverage Ratio. Permit the Consolidated Net Leverage Ratio, as at the last day of any period of four consecutive trailing fiscal quarters of Holdings to be greater than the ratio set forth below opposite such period: June 30, 2020 through June 30, 2021 4.00:1.00 September 30, 2021 through December 31, 2021 3.50:1.00 March 31, 2022 through December 31, 2022 3.25:1.00 March 31, 2023 and each fiscal quarter ending thereafter 3.00:1.00
Maximum Consolidated Net Leverage Ratio. As of the end of each of its fiscal quarters ending after the Closing Date, the Borrower will not permit the Consolidated Net Leverage Ratio for any Measurement Period ended on such date, to exceed 3.50:1.00; provided that, at the Borrower’s written election in accordance with the definition of “Qualified Acquisition”, during the first six consecutive fiscal quarters ended immediately following the consummation of any Qualified Acquisition (including the fiscal quarter in which such Qualified Acquisition occurs), the maximum Consolidated Net Leverage Ratio shall increase to 4.00:1.00 (an “Adjusted Leverage Ratio Period”); provided, further, that following any Adjusted Leverage Ratio Period, the maximum Consolidated Net Leverage Ratio shall be 3.50:1.00 for at least the two full consecutive fiscal quarters following such Adjusted Leverage Ratio Period before the maximum Consolidated Net Leverage Ratio may be increased as a result of a subsequent Qualified Acquisition.
Maximum Consolidated Net Leverage Ratio. Pursuant to Section 6.12(a) of the Credit Agreement, as of the Reporting Date, the Borrower’s Consolidated Net Leverage Ratio was to 1.00 which o satisfies o does not satisfy the requirement that such ratio be no more than to 1.00 on the Reporting Date.
Maximum Consolidated Net Leverage Ratio. The Company shall not permit the Consolidated Net Leverage Ratio as of the last day of the most recently ended applicable period ending on the dates set forth below to exceed the correlative ratio indicated for such period (or period including such Fiscal Quarter or twelve month period): Twelve Month Period ending 11/30/18 3.75 to 1.0 Four Fiscal Quarter Period Ending 12/31/18 3.75 to 1.0 Four Fiscal Quarter Period Ending 3/31/19 2.75 to 1.0 Four Fiscal Quarter Period Ending 6/30/19 2.50 to 1.0 Four Fiscal Quarter Period Ending 9/30/19 3.50 to 1.0
Maximum Consolidated Net Leverage Ratio. Permit the Consolidated Net Leverage Ratio, as of the end of each fiscal quarter occurring after the Closing Date, to be greater than 3.50 to 1.00; provided, however, that upon the consummation of a Material Acquisition and upon the written election of the Administrative Borrower (which may be exercised not more than two (2) times during the term of this Agreement) to the Administrative Agent (which shall promptly notify the Lenders), the Administrative Borrower may increase the maximum Consolidated Net Leverage Ratio (x) by 0.50x (but in no event to a ratio greater than 4.00 to 1.00) above the Consolidated Net Leverage Ratio then in effect for the next two (2) fiscal quarters ending after the date of the consummation of such Material Acquisition and (y) by 0.25x (but in no event to a ratio greater than 3.75 to 1.00) above the Consolidated Net Leverage Ratio then in effect for the third and fourth fiscal quarters ending after the date of the consummation of such Material Acquisition (the “Adjusted Consolidated Net Leverage Ratio”) (it being understood that, in the event an additional Material Acquisition is consummated during the period set forth in this proviso, a second such written election may be made by the Administrative Borrower, whereupon the Consolidated Net Leverage Ratio shall be increased as set forth in clauses (x) and (y) with respect to the successive four (4) fiscal quarters ending after such second Material Acquisition, but subject to the limitations set forth in clauses (x) and (y)). The Adjusted Consolidated Net Leverage Ratio shall be effective as of the date of consummation of the applicable Material Acquisition (including, without limitation, for determining Pro Forma Compliance with the requirements of this Agreement for such Material Acquisition).
Maximum Consolidated Net Leverage Ratio. The Loan Parties will not permit the Consolidated Net Leverage Ratio to exceed 3.75:1.00 at any time; provided that, at the Borrower’s written election in accordance with the definition of “Qualified Acquisition”, during the first four consecutive fiscal quarters ended immediately following the consummation of any Qualified Acquisition (including the fiscal quarter in which such Qualified Acquisition occurs), the maximum Consolidated Net Leverage Ratio shall increase to 4.50:1.00 (an “Adjusted Leverage Ratio Period”); provided, further, that, following any Adjusted Leverage Ratio Period, the maximum Consolidated Net Leverage Ratio shall be 3.75:1.00 for at least the two full consecutive fiscal quarters following such Adjusted Leverage Ratio Period before the maximum Consolidated Net Leverage Ratio may be increased as a result of a subsequent Qualified Acquisition. DEFAULT
Maximum Consolidated Net Leverage Ratio. Consolidated Funded Debt at the Financial Statement Date3