FFO Coverage Ratio definition
FFO Coverage Ratio means the ratio of (x) the sum of Consolidated Funds From Operations plus Consolidated Net Interest Expense plus Significant Operating Lease Payments to (y) Consolidated Senior Interest Expense plus Significant Operating Lease Payments.
FFO Coverage Ratio of any Person means, for any period, the ratio of (1) Consolidated FFO plus the consolidated interest expense of the Company and its Subsidiaries, to the extent paid in cash, to (2) Consolidated Interest Expense plus the consolidated allowance for funds used during construction, debt portion, of the Company and its Subsidiaries, each determined for such period. In the event that the Company or any of its Subsidiaries incurs, assumes, guarantees or redeems any Indebtedness (other than revolving credit borrowings under existing credit facilities) or issues preferred stock subsequent to the commencement of the Reference Period for which the FFO Coverage Ratio is being calculated but prior to the date on which the event for which the calculation of the FFO Coverage Ratio is made (the “Calculation Date”), which Indebtedness or preferred stock remains outstanding on the Calculation Date, then the FFO Coverage Ratio shall be calculated giving pro forma effect to such incurrence, assumption, guarantee or redemption of Indebtedness, or such issuance or redemption of preferred stock, and to the discharge of any other Indebtedness or preferred stock repaid, repurchased, defeased or otherwise discharged with the proceeds of such new Indebtedness or preferred stock, as if the same had occurred at the beginning of the applicable Reference Period. For purposes of making the computation referred to above, acquisitions that have been made by the Company or any of its Subsidiaries, including through mergers or consolidations and including any related financing transactions, during the Reference Period or subsequent to such Reference Period and on or prior to the Calculation Date shall be deemed to have occurred on the first day of the Reference Period.
Examples of FFO Coverage Ratio in a sentence
The Borrower will not permit the Operating Company FFO Coverage Ratio at the end of any Test Period to be less than 1.80 to 1.00.
The Borrower will not permit the Group FFO Coverage Ratio at the end of any Test Period to be less than 2.00 to 1.00.
The Borrower will not permit the Group FFO Coverage Ratio at the end of any Test Period to be less than 1.30 to 1.00.