Operating Coverage Ratio definition
Operating Coverage Ratio means the ratio of (i) Consolidated EBITDA during any period to (ii) Consolidated Interest Expense during any such period.
Operating Coverage Ratio. Permitted Investment,"Permitted Refinancing," "Proceeds Purchase Date,"Qualified Capital Stock,"Refinancing Indebtedness,"Restricted Payment,"Significant Stockholder" and "Weighted Average Life to Maturity." ARTICLE THREE
Operating Coverage Ratio of the Company to become due from time to time during such period. For purposes of this definition, if the Transaction Date occurs prior to the first anniversary of the Transactions, "EBITDA" for the Pro Forma Period shall be calculated after giving effect on a pro forma basis to the Transactions and the California Disposition as if they had occurred on the first day of the Pro Forma Period. In addition to, but without duplication of, the foregoing, for purposes of this definition, "EBITDA" shall be calculated after giving effect (without duplication), on a pro forma basis for the Pro Forma Period (but no longer), to (a) any Investment, during the period commencing on the first day of the Pro Forma Period to and including the Transaction Date (the "Reference Period"), in any other Person that, as a result of such Investment, becomes a Restricted Subsidiary, (b) the acquisition, during the Reference Period (by merger, consolidation or purchase of stock or assets) of any business or assets, which acquisition is not prohibited by this Indenture, and (c) any sales or other dispositions of any Restricted Subsidiary or any line of business (or geographical area thereof) of the Company or any Restricted Subsidiary occurring during the Reference Period, in each case as if such incurrence, Investment, repayment, acquisition or asset sale had occurred on the first day of the Reference Period. In addition, for purposes of this definition, "Consolidated Interest Expense" shall be calculated after giving effect (without duplication), on a pro forma basis for the Forward Period, to any Indebtedness Incurred or repaid on or after the first day of the Forward Period and prior to the Transaction Date. If the Company or any Restricted Subsidiary directly or indirectly guarantees any Indebtedness of a third Person, the Operating Coverage Ratio shall give effect to the Incurrence of such Indebtedness as if the Company or such Restricted Subsidiary had directly Incurred such guaranteed Indebtedness.
Examples of Operating Coverage Ratio in a sentence
Amendment consists of a modification to the Minimum Required Operating Coverage Ratio from a minimum of 2.40 to a minimum 1.80 (or 2.00 ?).
Notwithstanding the foregoing, neither of the Guarantee Conditions shall be deemed to exist during any period when the Company's Operating Coverage Ratio is greater than 3.0 to 1.0.
Except as set forth in this Section 4.12, the Company shall not create, incur, issue, assume, guarantee or otherwise become liable for, contingently or otherwise (collectively, "issue"), directly or indirectly, any Indebtedness, and shall not permit any Restricted Subsidiary to issue, directly or indirectly, any Indebtedness, provided that the Company or a Restricted Subsidiary may issue Indebtedness if the Operating Coverage Ratio of the Company exceeds 2.25 to 1.0.
More Definitions of Operating Coverage Ratio
Operating Coverage Ratio shall have the meaning given such term in that certain Indenture dated as of January 15,1997 between the Company (formerly ABC Rail Products Corporation) and U.S. Bank National Association (successor Trustee to First Trust National Association), as supplemented prior to the date Hereof but without giving effect to any subsequent amendment, waiver or Modification thereof."
Operating Coverage Ratio addition to, but without duplication of, the foregoing, for purposes of this definition, "EBDIT" shall be calculated after giving effect (without duplication), on a pro forma basis for the Pro Forma Period (but no longer), to (a) any Investment, during the period commencing on the first day of the Pro Forma Period to and including the Transaction Date (the "Reference Period"), in any other person that, as a result of such Investment, becomes a subsidiary of such person, (b) the acquisition, during the Reference Period (by merger, consolidation or purchase of stock or assets) of any business or assets, which acquisition is not prohibited by this Indenture, and (c) any sales or other dispositions of assets (other than sales of inventory in the ordinary course of business) occurring during the Reference Period, in each case as if such incurrence, Investment, repayment, acquisition or asset sale had occurred on the first day of the Reference Period. In addition, for purposes of this definition, "Fixed Charges" shall be calculated after giving effect (without duplication), on a pro forma basis for the Forward Period, to any Indebtedness incurred or repaid on or after the first day of the Forward Period and prior to the Transaction Date. If such person or any of its subsidiaries directly or indirectly guarantees any Indebtedness of a third person, the Operating Coverage Ratio shall give effect to the incurrence of such Indebtedness as if such person or subsidiary had directly incurred such guaranteed Indebtedness.