Total Gross Leverage Ratio Clause Samples
The Total Gross Leverage Ratio clause defines the maximum allowable ratio of a company's total debt to its earnings or another financial metric, serving as a key financial covenant in loan agreements. This ratio is typically calculated by dividing the borrower’s total outstanding debt by a measure such as EBITDA, and is monitored periodically to ensure compliance. Its core function is to limit the borrower’s indebtedness, thereby protecting lenders by reducing the risk of default due to excessive leverage.
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Total Gross Leverage Ratio. The Loan Parties shall not permit the ratio of Funded Debt of the Borrowers and their consolidated Subsidiaries minus $10,000,000 to Consolidated EBITDA, calculated as of the end of each fiscal quarter for the four (4) immediately preceding fiscal quarters, beginning with the fiscal quarter first ending after the Closing Date and continuing thereafter, to exceed 3.75 to 1.00 (the “Total Gross Leverage Ratio”).
Total Gross Leverage Ratio. On the Funding Date, the Borrower and its Restricted Subsidiaries shall be in compliance, on a Pro Forma Basis, with a Total Gross Leverage Ratio of not greater than 8.00:1.00.
Total Gross Leverage Ratio. (Section 6.7(d)) (upon the occurrence of the Financial Covenant Change Event) – NOTE – below calculation is on a consolidated basis Required: 2.00:1.00 Actual: :1.00
A. Aggregate amount of Indebtedness of Borrower and its Subsidiaries outstanding $ B. Line III.F. (trailing 12 month Adjusted EBITDA) $ C. Total Gross Leverage Ratio (line A divided by line B) Is line C equal to or greater than 2.00:1:00? No, not in compliance Yes, in compliance N/A as covenant need not be tested for such quarter per Section 6.7(d)
Total Gross Leverage Ratio. Solely with respect to the Revolving Credit Facility, the Borrower will not permit the Total Gross Leverage Ratio as of the last day of any Test Period (commencing with the Test Period ending September 30, 2017) to be greater than the ratio set forth below opposite such period: Closing Date through September 30, 2017 5.25 to 1.00 December 31, 2017 through September 30, 2018 4.25 to 1.00 December 31, 2018 and thereafter 3.50 to 1.00
Total Gross Leverage Ratio. The Fiscal Quarter in which the Closing Date occurs and each of the next two succeeding Fiscal Quarters 3.75 to 1.00 Each of the next two succeeding Fiscal Quarters, the second of which will occur no later than the last day of Fiscal Year 2020 3.50 to 1.00 Each of the next two succeeding Fiscal Quarters, the first of which will occur no later than the Fiscal Quarter ending March 31, 2021 3.00 to 1.00 Each of the next two succeeding Fiscal Quarters 2.50 to 1.00 Each of the next two succeeding Fiscal Quarters 2.25 to 1.00 Each of the next two succeeding Fiscal Quarters 2.00 to 1.00 Each of the next two succeeding Fiscal Quarters 1.75 to 1.00 Each Fiscal Quarter thereafter 1.50 to 1.00
Total Gross Leverage Ratio. The Borrower will not permit the Total Gross Leverage Ratio:
(a) on the last day of any Fiscal Quarter of the Borrower which ends during the Fiscal Year ending on December 31, 2019, to be greater than 8.00:1.00;
(b) on the last day of any Fiscal Quarter of the Borrower which ends during the Fiscal Year ending on December 31, 2020, to be greater than 7.50:1.00;
(c) on the last day of any Fiscal Quarter of the Borrower which ends during the Fiscal Year ending on December 31, 2021, to be greater than 7.25:1.00;
(d) on the last day of any Fiscal Quarter of the Borrower which ends during the Fiscal Year ending on December 31, 2022, to be greater than 6.75:1.00.