Restricted Indebtedness Clause Samples
The Restricted Indebtedness clause limits the amount and types of debt that a party, typically a borrower, is permitted to incur under an agreement. It sets specific thresholds or categories of allowable debt, such as excluding certain routine trade payables or permitting only pre-approved loans, and may require lender consent for additional borrowing. This clause serves to protect the lender or counterparty by preventing the borrower from taking on excessive or risky financial obligations that could jeopardize their ability to meet existing commitments.
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Restricted Indebtedness. (a) Increase the aggregate amount of Consolidated Indebtedness at any time from the Effective Date through and including October 31, 2003 to an amount greater than the aggregate amount of Consolidated Indebtedness outstanding as of March 31, 2003 or (b) create, incur, assume or suffer to exist any Indebtedness unless the ratio of Consolidated Indebtedness on the last day of the most recently ended fiscal quarter, after giving pro forma effect to the incurrence of such Indebtedness as if it had been incurred as of such date to Consolidated EBITDA on the last day of the most recently ended fiscal quarter, is less than (i) 4.0:1.0 for any incurrence of Indebtedness between November 1, 2003 and December 31, 2003, or (ii) the Consolidated Leverage Ratio set forth in the table in Section 8.4(c) for the fiscal quarter during which such Indebtedness is incurred for any Indebtedness incurred at any time after December 31, 2003.
Restricted Indebtedness. The Company will not, directly or indirectly, incur any Indebtedness the proceeds of which will be used to pay dividends upon shares of the Company's Common Stock or any other capital stock of the Company that may from time to time be outstanding.
Restricted Indebtedness. (a) No Credit Party will, nor will it permit any Restricted Subsidiary to, optionally or voluntarily redeem, purchase, acquire, defease or otherwise satisfy prior to the scheduled maturity thereof in any manner, or make any payment in violation of any subordination terms of, or segregate funds with respect to, any Restricted Indebtedness (“Restricted Indebtedness Payments”) other than (i) Restricted Indebtedness Payments made in respect of intercompany Restricted Indebtedness; provided that no such payment may be made to a non-Credit Party unless the Payment Conditions shall be satisfied; (ii) Restricted Indebtedness Payments made by exchange for, or out of the proceeds of the substantially concurrent incurrence of, Permitted Refinancing Indebtedness; (iii) Restricted Indebtedness Payments made by exchange for Equity Interests of the Parent (other than Disqualified Stock); and (iv) Restricted Indebtedness Payments, provided that the Payment Conditions shall be satisfied.
Restricted Indebtedness. (a) Incur, create or assume any Restricted Indebtedness if any Default (including, without limitation, any Default with respect to Sections 6.10 through and including 6.14, as reasonably determined on a pro forma basis) or Event of Default exists or will result from the incurrence, creation or assumption of such Restricted Indebtedness or (b) incur, create or assume any Indebtedness referred to in clause (i) of the definition of Restricted Indebtedness if any Default (including, without limitation, any Default with respect to Sections 6.10 through and including 6.14, as reasonably determined on a pro forma basis) or Event of Default exists or will result from the incurrence, creation or assumption of such Indebtedness.
Restricted Indebtedness. (a) No Credit Party will, nor will it permit any Restricted Subsidiary to, optionally or voluntarily redeem, purchase, acquire, defease or otherwise satisfy prior to the scheduled maturity thereof in any manner, or make any payment in violation of any subordination terms of, or segregate funds with respect to, any Restricted Indebtedness (“Restricted Indebtedness Payments”) other than (i) Restricted Indebtedness Payments made in respect of intercompany Restricted Indebtedness; provided that no such payment may be made to a non-Credit Party unless the Payment Conditions shall be satisfied; (ii) Restricted Indebtedness Payments made by exchange for, or out of the proceeds of the substantially concurrent incurrence of, Permitted Refinancing Indebtedness; (iii) Restricted Indebtedness Payments made by exchange for Equity Interests of the Parent (other than Disqualified Stock); and (iv) Restricted Indebtedness Payments, provided that the Payment Conditions shall be satisfied.
(b) With respect to any financing documentation related to any Restricted Indebtedness that is permitted under this Agreement (other than intercompany Restricted Indebtedness), the Parent and the Company shall not, nor shall it permit any of its Restricted Subsidiaries to amend, modify or change such documentation in any manner materially adverse to the interests of the Lenders, it being understood that an amendment shall be deemed to be materially adverse to the interests of the Lenders if the effect of such amendment is (i) to cause such Restricted Indebtedness to mature prior to the date that is ninety-one (91) days following the Scheduled Termination Date, or (ii) to cause the Weighted Average Life to Maturity of such permitted Restricted Indebtedness to be shorter than the Weighted Average Life to Maturity of the Restricted Indebtedness prior to such amendment.
Restricted Indebtedness. Prior to the occurrence of a Release Event, the Seller shall not, and shall not permit any of its Subsidiaries to, create, incur, assume or suffer to exist any Restricted Indebtedness without the Buyer’s prior consent. As a condition to the incurrence at any time of any secured Indebtedness for borrowed money with one or more Senior Debt Providers, the Buyer shall enter, and the Seller shall enter and cause such Senior Debt Provider to enter, into an Acceptable Intercreditor Agreement to be mutually agreed by the parties thereto. The Buyer and the Seller agree to negotiate such Acceptable Intercreditor Agreement in good faith.
Restricted Indebtedness. Prior to the Minimum Return Date, the Parent shall not, and shall not permit any of its Subsidiaries to, create, incur, assume or suffer to exist any Restricted Indebtedness. As a condition to the incurrence of any secured Permitted Indebtedness for borrowed money with one or more lenders that is secured by the Product Collateral, the Buyer shall enter, and the Parent and the applicable Subsidiaries shall enter and cause such lender or lenders or any agent, representative or trustee acting on behalf of such lender or lenders to enter into an Acceptable Intercreditor Agreement.
Restricted Indebtedness. Prior to the Minimum Return Date, the Seller shall not, and shall not permit any of its Subsidiaries to, create, incur, assume or suffer to exist any Restricted Indebtedness. As a condition to the incurrence at any time of any secured Indebtedness for borrowed money with one or more lenders other than the holders of Indebtedness under the Credit Agreement, either (a) the Seller shall cause such lender or lenders or any agent, representative or trustee acting on behalf of such lender or lenders to become a party to the Intercreditor Agreement or (b) the Buyer shall enter, and the Seller shall enter and cause such lender or lenders or any agent, representative or trustee acting on behalf of such lender or lenders to enter into an Other Intercreditor Agreement which shall be subject to the prior written consent of Buyer, such consent to not be unreasonably withheld, conditioned or delayed.
Restricted Indebtedness. Prior to the Royalty Termination Date, the Seller shall not, and shall not permit any of its Subsidiaries to, create, incur, assume or suffer to exist any Restricted Indebtedness.
Restricted Indebtedness. Section 6.9 Diligence Section 6.10 Efforts to Consummate Transactions