Definition of Transaction Test


Transaction Test means, with respect to any specified transaction, that either (1) no Event of Default or Default then exists and the Debt Service Coverage Ratio for the most recent Fiscal Year for which audited financial statements are available, calculated as if such transaction had occurred on the first day of such Fiscal Year, would be (A) greater than the actual Debt Service Coverage Ratio for such Fiscal Year or (B) at least 2.0:1.0 or (2) no Event of Default or Default then exists, the Debt Service Coverage Ratio for the most recent Fiscal Year for which audited financial statements are available, calculated as if such transaction had occurred on the first day of such Fiscal Year, would be at least equal to 75% of the actual Debt Service Coverage Ratio for such Fiscal Year, and, following such transaction, the Credit Group could satisfy the conditions for the issuance of $1.00 of additional Long-Term Indebtedness.
Sample 1 Sample 2