Covenant Election definition

Covenant Election means an election made by the Company with respect to any fiscal quarter and the twelve month fiscal period then ended to reduce the covenant levels of Minimum EBITDA and Interest Coverage Ratio contained in Schedule 6.5. The Company may only exercise a Covenant Election and such Covenant Election shall only remain effective if (x) on each day from the date on which the Covenant Election is exercised until the date on which the Company delivers to Note Purchaser the financial statements required by subsection 6.2(b) for the last month of the fiscal quarter immediately succeeding the fiscal quarter for which the Covenant Election is to apply Availability equaled or exceeded $9,000,000, (y) the Company has not exercised a Covenant Election for more than six consecutive fiscal quarters and (z) the Company has not exercised a Covenant Election for more than eight fiscal quarters within the term of this Agreement. In order to make a Covenant Election, the Company must notify Note Purchaser in writing as provided in Section 10.4 of such election no later than thirty days after the end of the fiscal quarter to which the Covenant Election is to apply. By way of example of the period described in clause (x) above, if the Company wishes to make a Covenant Election for the fiscal quarter ended December 31, 2005, then the Company must notify Note Purchaser of such Covenant Election on or prior to January 30, 2006 and must maintain Availability greater than $9,000,000 for each day from the date of the Covenant Election until the date on which the financial statements for the fiscal period ended March 31, 2006 are delivered to Note Purchaser.

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Covenant Election. Section 8.17.

Covenant Election means that (a) the Borrower Leverage Ratio as of the fiscal quarter most recently ended is less than 3.25 to 1.00 and (b) the Borrower has delivered a written notice (an “Election Notice”) to the Administrative Agent, in form and substance satisfactory to the Agent, stating that the Borrower is making a “Covenant Election” for purposes of this Agreement. Any Covenant Election shall be irrevocable once made. The delivery of an Election Notice by the Borrower to the Administrative Agent at a time when the condition set forth in clause (a) above has not been met shall constitute an Event of Default.

Examples of Covenant Election in a sentence

Such Purchaser shall have received evidence reasonably satisfactory to it that the “Investment Grade Financial Covenant Election Date” as defined under and in accordance with the Principal Credit Facility shall have occurred or shall occur on the Closing Date.
If the Company makes the Three-Month Restrictive Covenant Election, then you shall be subject to the Three-Month Restrictive Covenant for three months following the Date of Termination.
Investment Grade Financial Covenant Election Date 11 Section 4.14.
Borrowers shall maintain a Consolidated Fixed Charge Coverage Ratio of at least 1.10 to 1.00 for the period of twelve (12) Fiscal Months ending on the last day of each Fiscal Month beginning after the Covenant Election Date.
Commencing on the Closing Date and at all times thereafter prior to Agent’s receipt of a Minimum Availability Covenant Election Notice, Borrowers shall not permit the Credit Party Liquidity at any time to be less than (a) during the period commencing on February 1st through and including May 31st of each calendar year, $12,500,000 and (b) at all other times, $15,000,000 (the covenant set forth in this Section 6.1, the “Minimum Liquidity Covenant”).
Commencing on the Closing Date and at all times thereafter prior to Agent's receipt of a Minimum Availability Covenant Election Notice, Borrowers shall not permit the Credit Party Liquidity at any time to be less than $6,800,000 (the covenant set forth in this Section 6.1, the “Minimum Liquidity Covenant”).
Commencing with the last day of the fiscal quarter, if any, in which the Financial Covenant Election is made (but in no event prior to June 30, 2019), the Parent and the Borrower will not permit, as of the last day of any fiscal quarter, the Consolidated Senior Secured Leverage Ratio to be greater than 3.50 to 1.00.
Commencing with the Measurement Period ending on the last day of the fiscal quarter in which a Financial Covenant Election is made, and as of the end of any Measurement Period thereafter, permit the Consolidated Senior Secured Leverage Ratio to be greater than 3.75 to 1.00.
For the avoidance of doubt, if EXLP makes the Alternative Covenant Election within the time period specified in paragraph (b) above, EXLP shall not be required to comply with this Section 9.10(c).
Prior to any Financial Covenant Election, the Borrowers will not permit the Total Leverage Ratio to exceed 4.50 to 1.00 as of the last day of any fiscal quarter.

More Definitions of Covenant Election

Covenant Election an election made by Borrower with respect to any fiscal quarter and the twelve month fiscal period then ended to reduce the covenant levels of Minimum EBITDA and Interest Coverage Ratio contained in Exhibit 8.3. Borrower may only exercise a Covenant Election and such Covenant Election shall only remain effective if (x) on each day from the date on which the Covenant Election is exercised until the date on which Borrower delivers to Agent the financial statements required by subsection 8.1.3(ii) for the last month of the fiscal quarter immediately succeeding the fiscal quarter for which the Covenant Election is to apply Availability equalled or exceeded $8,000,000, (y) Borrower has not exercised a Covenant Election for more than six consecutive fiscal quarters and (z) Borrower has not exercised a Covenant Election for more than eight fiscal quarters within the Term. In order to make a Covenant Election, Borrower must notify Agent in writing as provided in Section 12.8 of such election no later than thirty days after the end of the fiscal quarter to which the Covenant Election is to apply. By way of example of the period described in clause (x) above, if Borrower wishes to make a Covenant Election for the fiscal quarter ended 12/31/05, then Borrower must notify Agent of such Covenant Election on or prior to January 30, 2006 and must maintain Availability greater than $8,000,000 for each day from the date of the Covenant Election until the date on which the financial statements for the fiscal period ended March 31, 2006 are delivered to Agent. First Amendment – that certain First Amendment to Fourth Amended and Restated Loan and Security Agreement dated as of March 15, 2005 by and among Borrower, Agent and Lenders.”