Ratio of Net Debt to EBITDAX Clause Samples

The 'Ratio of Net Debt to EBITDAX' clause defines a financial covenant that measures a company's leverage by comparing its net debt to its earnings before interest, taxes, depreciation, amortization, and exploration expenses (EBITDAX). This clause typically requires the company to maintain this ratio below a specified threshold, ensuring that its debt levels remain manageable relative to its cash-generating ability. For example, a loan agreement might stipulate that the ratio must not exceed 3.0, meaning net debt cannot be more than three times EBITDAX. The core function of this clause is to protect lenders by limiting the borrower’s financial risk and ensuring the company remains financially stable.
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Ratio of Net Debt to EBITDAX. The Borrower will not permit as of any date of determination the ratio of (A) (1) Total Debt less (2) the sum as of such date of (x) unencumbered cash and Cash Equivalents of the Borrower and its Subsidiaries and (y) Debt permitted pursuant to Section 9.02(g) to (B) EBITDAX for the four fiscal quarters ending on the last day of the fiscal quarter immediately preceding such date for which financial statements are available to be greater than 3.0 to 1.0.
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Ratio of Net Debt to EBITDAX. Commencing December 31, 2008, the Borrower will not, at any time, permit its ratio of Net Debt as of such time to EBITDAX to be greater than (i) 4.5 to 1.0 the fiscal quarters ending December 31, 2008, March 31, 2009, June 30, 2009 and September 30, 2009, and (ii) 3.5 to 1.0 for all fiscal quarters ending thereafter.
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Related to Ratio of Net Debt to EBITDAX

  • Total Debt to EBITDA Ratio Not permit the Total Debt to EBITDA Ratio as of the last day of any Computation Period to exceed 3.25 to 1.00.

  • Debt to EBITDA Ratio Maintain, as of the end of each fiscal quarter, a ratio of (i) Debt, excluding Debt in respect of Hedge Agreements, as of such date to (ii) Consolidated EBITDA of the Company and its Consolidated Subsidiaries for the period of four fiscal quarters most recently ended, of not greater than 4.0 to 1.0.

  • Funded Debt to EBITDA Ratio To maintain on a consolidated basis a ratio of Funded Debt to EBITDA not exceeding 3.0:1.0.

  • Funded Debt to EBITDA Maintain, tested on the last day of each fiscal quarter, a ratio of (i) Funded Debt of Borrower as of the last day of such fiscal quarter to (ii) EBITDA for the four (4) consecutive fiscal quarters of Borrower then ended, not greater than 3.25 to 1.

  • Cash Flow Leverage Ratio The Borrower will not permit the Cash Flow Leverage Ratio on the last day of any fiscal quarter to exceed 3.50 to 1.00.