Financial Covenant definition
Examples of Financial Covenant in a sentence
Except as otherwise expressly provided herein, all terms of an accounting or financial nature shall be construed in accordance with GAAP, as in effect from time to time; provided, however, that for purposes of determining compliance with the Credit Agreement Financial Covenant, such terms shall be construed in accordance with GAAP as in effect on the date hereof applied on a basis consistent with the application used in preparing Oncor’s audited financial statements referred to in Section 6.02(u).
The Minimum Cash Financial Covenant set forth in Section 5 of the Schedule is hereby amended and restated to read as follows: Minimum Cash: Borrower shall at all times maintain unrestricted cash or cash equivalents in deposit accounts with Agent and Agent’s Affiliates of not less than $[***], which shall be measured on a daily basis.
Borrower has advised Agent and Lenders that prior to the date of the Sixth Amendment, Borrower has from time to time failed to comply with the Minimum Cash Financial Covenant set forth in Section 5 of the Schedule (collectively, the “Minimum Cash Defaults”) as such Minimum Cash Financial Covenant required unrestricted cash to be maintained in deposit account with Agent and did not include unrestricted cash or cash equivalents maintained in deposit accounts with Agent’s Affiliates.
Notwithstanding anything herein to the contrary, the Financial Covenant shall be solely for the benefit of the Revolving Credit Lenders.
The cash proceeds received by Holdco from such purchases or contributions shall be deemed to increase Consolidated Adjusted EBITDA on a dollar-for-dollar basis, and the amount of such increase may be included in a recalculation of the financial covenant(s) giving rise to the Financial Covenant Default for the fiscal quarter immediately preceding such purchase or contribution, as applicable, and, without duplication, for each of the following three fiscal quarters.