Borrowers Financial Covenants Clause Examples

Borrowers Financial Covenants. Borrower covenants that that until all of the Indebtedness is paid in full and all of the Obligations have been fully performed:

Borrowers Financial Covenants. So long as the Lender shall have any Commitment hereunder, any Secured Hedge Agreement shall be in effect or any Loan or other Secured Obligations hereunder or under any other Loan Document which is accrued and payable shall remain unpaid or unsatisfied, the Borrowers, shall:

Borrowers Financial Covenants. (a) Borrower's consolidated EBITDA and Borrower's consolidated gross revenues, as calculated from amounts reflected on Borrower's unaudited income statements with respect to the covenants as of each six month period ending June 30th and December 31st and audited as to all fiscal year covenants prepared in accordance with GAAP for the periods indicated below shall, at a minimum, be as follows: Date EBITDA REVENUES ---- ------ -------- Full Year Ended December 31, 2003 $ 5,000,000 $ 90,000,000 Six Months Ended June 30, 2004 2,500,000 45,000,000 Six Months Ended December 31, 2004 3,500,000 60,000,000 Total: Fiscal Year 2004 6,000,000 105,000,000 Six Months Ended June 30, 2005 3,000,000 50,000,000 Six Months Ended December 31, 2005 4,000,000 65,000,000 Total: Fiscal Year 2005 7,000,000 115,000,000 Such amounts and values stated above for the six month period ended December 31, 2005, shall remain the benchmark for all six month periods thereafter until all of Borrower's obligations to Lender arising out of or relating to this Agreement are fully extinguished. (b) Borrower's Fixed Charge Ratio, measured quarterly on a consolidated basis beginning with the quarter ending September 30, 2003, shall not be less than 1.75 for the quarter ending September 30, 2003, and shall not be less than 2.0 for all quarters ending thereafter. (c) Borrower's Current Ratio, measured quarterly on a consolidated basis beginning with the month ending June 30, 2003, shall not be less than 1.20, except that for the quarter ended June 30, 2003, the Current Ratio shall be not less than 1.0. (d) Borrower's ratio of Funded Debt to Tangible Net Worth, measured quarterly on a consolidated basis beginning with the month ending September 30, 2003, must be no greater than the following: Date Ratio ---- From Execution Date through September 30, 2003 3.5:1 September 30, 2003 through September 30, 2004 3.0:1 September 30, 2004 through September 30, 2005 2.0:1 September 30, 2005 and thereafter 1.5:1

Borrowers Financial Covenants. Any inconsistency between the provisions of this Section 5.2 and those of Article IV, Section 5.1 and Article VI shall be governed by the provisions of this Section 5.

Borrowers Financial Covenants. (a) RATIO OF INDEBTEDNESS FOR BORROWED MONEY TO TOTAL CAPITAL. The Borrower will not permit Consolidated Indebtedness for Borrowed Money to exceed 65% of Consolidated Total Capital at any time.

Borrowers Financial Covenants. If, in the opinion of the Agent (acting on the instructions of the Lenders), the Borrower, in the context of a financing made or to be made available to a member of the Group or otherwise, agrees with any third party financial covenants which: (a) place that third party in a more favourable position than that applicable to the Creditor Parties pursuant to the Finance Documents; and (b) are more onerous than those imposed on the Borrower pursuant to the Finance Documents, the Borrower shall give the Creditor Parties the benefit of such financial covenants by entering into a supplemental agreement to this Agreement and any of the other Finance Documents by which the applicable covenants and undertakings are amended and supplemented to bring them into line with those imposed on the Borrower by that third party (with such supplemental agreement being entered into as soon as practicable after the imposition of such financial covenants on the Borrower by the third party).

Borrowers Financial Covenants. Borrower further covenants and agrees with Bank as follows: (a) Borrower shall maintain a minimum Current Ratio of 1.0:1.0 to be measured quarterly. "Current Ratio" is defined as the ratio of current assets divided by current liabilities.

Borrowers Financial Covenants. (a) The amount derived by dividing (i) the consolidated EBITDA of Borrower by (ii) the consolidated interest expense of Borrower, ("Times Interest Earned") as calculated by amounts derived from the Parent's audited income statements for the fiscal years ending on the last day of February of each of 1998, 1999, 2000, 2001, 2002, and 2003 shall, at a minimum, equal 2.0. (b) Borrower's consolidated net income before income taxes ("NIBT"), as calculated four (4) times per year on a rolling quarter basis for the current quarter and the most recent three prior quarters as determined from amounts reflected on Borrower's unaudited consolidated income statements as of August 31, November 30, and May 31, and on Borrower's audited consolidated income statements as of the last day of February, of each of 1998, 1999, 2000, 2001, 2002, and 2003 (to the extent set forth below) shall, at a minimum, be at least $1,000,000. (c) Borrower's consolidated net book value of tangible assets, as calculated by amounts reflected on Borrower's unaudited consolidated balance sheets as of August 31, November 30, and May 31, and on Borrower's audited consolidated balance sheets as of the last day of February, of each of 1998, 1999, 2000, 2001, 2002, and 2003 (to the extent set forth below) shall, at a minimum, be $500,000.00. (d) Borrower's consolidated ratio of Funded Debt to the net book value of tangible assets ("Debt to Worth Ratio") as calculated by amounts reflected on Borrower's consolidated unaudited balance sheets as of August 31, November 30, and May 31, and on Borrower's audited consolidated balance sheets as of the last day of February, of each of 1998, 1999, 2000, 2001, 2002, and 2003 (to the extent set forth below) shall, at a maximum, be 2.75. (e) Borrower's consolidated current ratio (current assets divided by current liabilities) as calculated by amounts reflected on Borrower's unaudited consolidated balance sheets as of August 31, November 30, and May 31, and on Borrower's audited consolidated balance sheets as of the last day of February, of each of 1998, 1999, 2000, 2001, 2002, and 2003 (to the extent set forth below) shall, at a minimum, be 1.75.

Borrowers Financial Covenants. (a) Each Borrower shall, for the period commencing on the Utilisation Date in respect of the relevant Tranche being utilised to finance the Ship owned by that Borrower and ending on the date on which that Tranche has been repaid in full, maintain in its Retention Account a minimum liquidity amount of not less than (i) in the case of Borrower A and Borrower B, $650,000 and (ii) in the case of Borrower C, $700,000 (the “Minimum Liquidity Amount”) free of any Security, other than Security created in favour of the Lender. (b) On any Security Cover Testing Date falling on a date 18 Months after the last Utilisation Date relating to each of Tranche A and Tranche B, on which the Loan to Value Ratio in respect of a Ship A or Ship B is less 50 per cent. an amount of $150,000 may, at the Borrowers’ request be released from the Retention Account in relation to that Ship to the Borrowers. In the event that at any time after such release the Loan to Value Ratio is equal to or above 50 per cent. the Borrowers shall ensure that the Minimum Liquidity Amount of $650,000 is restored in the relevant Retention Account. (c) For the purposes of this Clause 21.2 (Borrowers’ financial covenants), “Loan to Value Ratio” means, in respect of each Ship, the ratio of the Tranche relating to such Ship expressed as a percentage of the Market Value of such Ship.