Minimum Borrowing Base Debt Service Coverage Ratio Sample Clauses
The Minimum Borrowing Base Debt Service Coverage Ratio clause sets a required financial threshold that a borrower must maintain, ensuring that the borrower's income or cash flow is sufficient to cover debt service obligations relative to the value of the borrowing base (typically a pool of assets securing the loan). In practice, this clause requires the borrower to regularly demonstrate, often through financial reporting, that their debt service coverage ratio—calculated by dividing net operating income by total debt service—does not fall below a specified minimum level. This provision helps lenders manage risk by ensuring the borrower remains financially stable and capable of meeting debt payments, thereby reducing the likelihood of default.
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Minimum Borrowing Base Debt Service Coverage Ratio. The Borrowing Base Debt Service Coverage Ratio is : 1.00 [and immediately following the Transaction, will be : 1.00], which is not less than the minimum Borrowing Base Debt Service Coverage Ratio of 1.50:1.00 as required by Section 5.04(b)(ii) of the Credit Agreement.
Minimum Borrowing Base Debt Service Coverage Ratio. Maintain as of each Test Date, a Borrowing Base Debt Service Coverage Ratio of not less than 1.50:1.00.
Minimum Borrowing Base Debt Service Coverage Ratio. Maintain, as of the last day of each fiscal quarter of the Parent Guarantor, a Borrowing Base Debt Service Coverage Ratio greater than 1.25:1.00.
Minimum Borrowing Base Debt Service Coverage Ratio. The Borrower will not at any time permit the Borrowing Base Debt Service Coverage Ratio to be less than or equal to 2.00 to 1.00.
Minimum Borrowing Base Debt Service Coverage Ratio. Maintain at all times a Borrowing Base Debt Service Coverage Ratio of not less than 1.50:1.00. To the extent any calculations described in Sections 5.04(a) or 5.04(b) are required to be made on any date of determination other than the last day of a fiscal quarter of the Borrower, such calculations shall be made on a pro forma basis to account for any acquisitions or dispositions of Assets, and the incurrence or repayment of any Debt for Borrowed Money relating to such Assets, that have occurred since the last day of the fiscal quarter of the Borrower most recently ended. To the extent any calculations described in Section 5.03(a) or 5.04(b) are required to be made on a Test Date relating to an Advance, a merger permitted under Section 5.02(d), a Transfer permitted under Section 5.02(e)(iii) or new Material Debt, such calculations shall be made both before and on a pro forma basis after giving effect to such Advance, merger, Transfer or such other event, as applicable. All calculations under this Section 5.04 shall be made on a pro forma basis to account for any applicable monthly or 30-day financial statements or reports required to be delivered pursuant to Section 5.03 since the date of the most recently delivered quarterly statements or reports. All such calculations shall be reasonably acceptable to the Administrative Agent.
Minimum Borrowing Base Debt Service Coverage Ratio. The Borrowers will not at any time during any period set forth in the table below permit the Borrowing Base Debt Service Coverage Ratio to be less than the percentage corresponding to such period. Closing Date to but excluding June 30, 2013 1.30 to 1.00 June 30, 2013 to but excluding December 31, 2013 1.40 to 1.00 December 31, 2013 to but excluding March 31, 2014 1.60 to 1.00 March 31, 2014 to but excluding December 31, 2015 1.750 to 1.00 On and after December 31, 2015 2.00 to 1.00
Minimum Borrowing Base Debt Service Coverage Ratio. The Borrowers will not at any time during any period set forth in the table below permit the Borrowing Base Debt Service Coverage Ratio to be less than the percentage corresponding to such period. Closing Date to but excluding June 30, 2013 1.30 to 1.00 June 30, 2013 to but excluding December 31, 2013 1.40 to 1.00 December 31, 2013 to but excluding March 31, 2014 1.60 to 1.00 March 31, 2014 to but excluding December 31, 2015 1.750 to 1.00 On and after December 31, 2015 2.00 to 1.00