Net Leverage Ratio Clause Samples
The Net Leverage Ratio clause defines a financial metric used to assess a borrower's indebtedness relative to its earnings, typically by comparing total debt minus cash or cash equivalents to EBITDA. In practice, this ratio is calculated periodically and may be used as a covenant in loan agreements, requiring the borrower to maintain the ratio below a specified threshold. The core function of this clause is to help lenders monitor and control the borrower's financial risk, ensuring the borrower does not become over-leveraged and thus protecting the lender's interests.
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Net Leverage Ratio. The Borrower will not permit the Net Leverage Ratio at the end of any fiscal quarter to exceed 3.5 to 1.00; provided that if, at the end of any fiscal quarter, the Net Leverage Ratio is greater than 3.5 to 1.00 and the Borrower has entered into a permitted acquisition within the two most recently ended fiscal quarters (including such fiscal quarter) (a fiscal quarter in which all such conditions are satisfied, a “Trigger Quarter”), then the Net Leverage Ratio may be greater than 3.5 to 1.00 (but shall not exceed 4.00 to 1.00) for such Trigger Quarter and the next succeeding three fiscal quarters; provided that, following the occurrence of a Trigger Quarter, no subsequent Trigger Quarter shall be permitted or deemed to exist unless and until the Net Leverage Ratio has returned to less than or equal to 3.5 to 1.00 as of the end of at least one fiscal quarter following the occurrence of such initial Trigger Quarter; provided, further that, the Borrower shall cause the Net Leverage Ratio to be less than or equal to 3.5 to 1.00 by the end of a fiscal quarter no later than the fourth fiscal quarter after such initial Trigger Quarter.
Net Leverage Ratio. The Borrowers will not permit the ------------------ Net Leverage Ratio as of the end of any fiscal quarter during any period set forth below to exceed the ratio set forth opposite such period: Period Ratio ------ ----- March 30, 2002 to June 29, 2002 1.75 to 1.00 June 30, 2002 and thereafter 1.50 to 1.00.
Net Leverage Ratio. Have a Net Leverage Ratio, measured on a quarter-end basis, of not greater than the applicable ratio set forth in the following table for the applicable date set forth opposite thereto:
Net Leverage Ratio. The Borrower shall not, as of the last day of any fiscal quarter, permit its Net Leverage Ratio to be greater than 3.00 to 1.00.
Net Leverage Ratio. Subject to the proviso set forth in Section 10.3, the Company will not permit the Consolidated Net Leverage Ratio at any time during any period of four consecutive fiscal quarters of the Company to be greater than (a) 3.50 to 1.00 or (b) during an Acquisition Holiday Period, 4.00 to 1.00.
1.6. Section 10.3(b) of the Original Note Purchase Agreement shall be and hereby is amended and restated in its entirety to read as follows:
Net Leverage Ratio. The Borrower will not permit the Net Leverage Ratio as of the last day of any fiscal quarter ending on or about any date set forth below to exceed the ratio set forth opposite such period: September 29, 2006 4.50 to 1.00 December 29, 2006 4.50 to 1.00 March 30, 2007 4.00 to 1.00 June 29, 2007 4.00 to 1.00 September 28, 2007 4.00 to 1.00 December 28, 2007 4.00 to 1.00 March 28, 2008 4.00 to 1.00 June 27, 2008 4.00 to 1.00 September 26, 2008 4.00 to 1.00 December 26, 2008 3.50 to 1.00 March 27, 2009 3.50 to 1.00 June 26, 2009 3.50 to 1.00 September 25, 2009 3.50 to 1.00 December 25, 2009 3.50 to 1.00 March 26, 2010 3.50 to 1.00 June 25, 2010 3.50 to 1.00 September 24, 2010 3.50 to 1.00 December 31, 2010 3.50 to 1.00 Thereafter 3.50 to 1.00
Net Leverage Ratio. Commencing with the Fiscal Quarter ending September 30, 2015, the Credit Parties will not permit the Net Leverage Ratio of the Credit Parties and their Subsidiaries as of the last day of any Fiscal Quarter to be greater than the maximum ratio specified below during the period opposite such maximum ratio: September 30, 2015 3.50 to 1.00 December 31, 2015 3.50 to 1.00 March 31, 2016 3.25 to 1.00 June 30, 2016 3.25 to 1.00 September 30, 2016 3.25 to 1.00 December 31, 2016 and thereafter 3.00 to 1.00
Net Leverage Ratio. As of each Quarterly Testing Date, commencing with September 30, 2024, (i) before the first occurrence of an Investment Grade Event, the Net Leverage Ratio will not exceed 5.50 to 1.00 and (ii) from and after the first occurrence of an Investment Grade Event, the Net Leverage Ratio will not exceed 5.00 to 1.00; provided that, if a Specified Acquisition Period is in effect at any time from and after the first occurrence of an Investment Grade Event, the Net Leverage Ratio shall not exceed 5.50 to 1.00.
Net Leverage Ratio. Beginning with the fiscal quarter ending September 30, 2014, the Borrower shall not permit the Net Leverage Ratio as of each fiscal quarter end to be more than 4.00 to 1.00.”
Net Leverage Ratio. AGCO shall not allow, as of the end of each Fiscal Quarter of AGCO, the Net Leverage Ratio to exceed 3.00 to 1.00.