Definition of Pro Forma Leverage Test


Pro Forma Leverage Test means, on any date of determination, (i) for purposes of Permitted Acquisitions, that the Pro Forma Leverage Ratio is not greater than 2.50 to 1.00 and (ii) for all other purposes, that the Pro Forma Leverage Ratio is not greater than 3.00 to 1.00.
Sample 1

Examples of Pro Forma Leverage Test in a sentence

The Borrowers and Guarantors will not make, and will not permit or suffer any of the Pledged Entities making, any acquisition of the Capital Stock or all, substantially all or a material portion of the assets of any Person unless (a) such acquisition is in furtherance of the Lines of Business, and (b) at the time of any such acquisition (i) there is no Default outstanding for which notice, if required, has been given, and (ii) the Pro Forma Leverage Test is satisfied.