Minimum Leverage Ratio Clause Samples
The Minimum Leverage Ratio clause sets a required threshold for the ratio of a borrower's equity to its total assets or debt, ensuring that the borrower maintains a certain level of financial stability. In practice, this clause obligates the borrower to keep its leverage ratio above a specified minimum, which is typically monitored through regular financial reporting. By enforcing this requirement, the clause helps lenders manage risk by preventing the borrower from becoming excessively leveraged, thereby reducing the likelihood of default.
Minimum Leverage Ratio. The Company will not permit its Consolidated Leverage Ratio, calculated as of the end of any fiscal quarter ending after the Closing Date, to exceed (x) 3.00 for fiscal quarters ending on or before December 31, 2005, (y) 2.75 for fiscal quarters ending on or after March 31, 2006, and on or before December 31, 2006, or (z) 2.50 for fiscal quarters ending on or after March 31, 2007. For purposes of this Section 8(f)(iii) only, the calculation of Consolidated Leverage Ratio shall exclude any warrant liability or change therein and any effect on the financial statements of the Company resulting from or otherwise related to (i) the Omnibus Amendment dated as of the date hereof involving the Warrants, (ii) the repricing of the warrants on the date hereof that were issued by the Company on July 28, 2005 pursuant to the Note and Warrant Purchase Agreement and to Libra FE, LP and (iii) any related amendment to or waiver dated as of the date hereof involving the Securities Purchase Agreement, the Note and Warrant Purchase Agreement, any transaction document related thereto, or the registration rights agreement with Libra FE, LP.”
Minimum Leverage Ratio. The ratio of consolidated Net Interest Bearing Debt to EBITDA (including any lease obligations) on a trailing four quarter basis shall at no time be greater than 4:1.
Minimum Leverage Ratio. On the date of the initial Advance hereunder (and as a condition precedent thereto) and on the last day of each Collection Period (commencing with the last day of the sixth Collection Period after the date of the initial Advance hereunder), the Originator shall maintain and demonstrate to the Administrative Agent a Leverage Ratio of at least 10%.
Minimum Leverage Ratio. The Company shall not allow the ratio of its Consolidated EBITDA (less cash Capital Expenditures) to the current portion of its Funded Indebtedness for the applicable period to be less than the amounts set forth in Schedule 8.10(a) for the applicable period identified therein.
Minimum Leverage Ratio. The Company will not permit its Consolidated Leverage Ratio, calculated as of the end of any fiscal quarter ending after the Closing Date, to exceed (x) 3.00 for fiscal quarters ending on or before December 31, 2005, (y) 2.75 for fiscal quarters ending on or after March 31, 2006, and on or before December 31, 2006, or (z) 2.50 for fiscal quarters ending on or after March 31, 2007.
Minimum Leverage Ratio. The Borrower will maintain at all times a Leverage Ratio greater than or equal to 5.0%.
Minimum Leverage Ratio. Borrower shall not permit its ratio of Total Debt to EBITDA, as measured and confirmed annually on a trailing twelve (12) month basis to Lender's satisfaction, to exceed 6.25:1.
Minimum Leverage Ratio. The Borrower shall not permit the Consolidated Leverage Ratio of the Borrower and its consolidated Subsidiaries as of the end of any fiscal quarter to be greater than .20 to 1.00.