Additional Funded Debt Sample Clauses
The "Additional Funded Debt" clause defines the conditions under which a borrower may incur new long-term debt beyond what is already outstanding. Typically, this clause sets limits on the amount, type, or circumstances under which additional loans, bonds, or other forms of funded debt can be issued, often requiring lender consent or compliance with specific financial ratios. Its core function is to protect existing lenders by preventing the borrower from taking on excessive debt that could jeopardize their ability to repay current obligations, thereby managing credit risk and maintaining financial stability.
Additional Funded Debt. The Borrower nor any Subsidiary shall incur additional funded debt beyond the existing approved facilities without the Bank’s prior written consent with the following exceptions: (i) a potential $4,000,000.00 line of credit for the Borrower’s Chinese Subsidiary for the issuance of guarantees and for working capital; (ii) a potential increase to a maximum of $6,000,000.00 to the Taiwanese line of credit; and (iii) acquisition financing in Switzerland for a potential facility and related equipment in an amount not to exceed $6,500,000.00 to replace an existing leased facility.
Additional Funded Debt. The Company and its Subsidiaries shall not, directly or indirectly, create, assume, incur, become liable for or with respect to any additional Funded Debt unless, immediately thereafter, the ratio of Total Funded Debt to Total Capitalization is not greater than 60%. For purposes of the calculations required under this Section 8.1, it shall be understood and agreed that guarantees of Debt owed by Delta Egg Farm, LLC given by the Company shall be included in Total Funded Debt.
Additional Funded Debt. Notwithstanding the provisions of paragraphs 6A(1), (2) and (3) hereof or any other provision of this Agreement, until the Original Covenant Compliance Date the Company covenants that it will not, and will not permit any Subsidiary to, issue, create, incur, assume or permit to exist any Funded Debt other than (a) Senior Indebtedness outstanding on the Fourth Amendment Effective Date (except to the extent refinanced with Senior Indebtedness incurred under the 2004 Credit Agreement), (b) Senior Indebtedness incurred under the 2004 Credit Agreement in compliance with the provisions of paragraphs 6A(1) and 6A(2), and (c) Capitalized Lease Obligations and purchase money Senior Indebtedness incurred by the Company or a Subsidiary in compliance with the provisions of paragraphs 6A(1) and 6A(2) to finance the acquisition of fixed assets and assets related thereto; provided, however, that the capital expenditure related thereto is otherwise permitted under the 2004 Credit Agreement as in effect on the Fourth Amendment Effective Date and that the aggregate outstanding principal amount of all such Capitalized Lease Obligations and purchase money Indebtedness shall not exceed $5,000,000 at any time.”
(d) Paragraph 6F of the Agreement is amended by adding the following to the end thereof: “Notwithstanding the foregoing, until the Original Covenant Compliance Date the Company covenants that it will not, and will not permit any of its Subsidiaries to, declare or make any Restricted Payment other than Restricted Payments as a result of the redemption of capital stock or options held by employees and members of management of the Company and its Subsidiaries in an amount not to exceed $2,000,000 in any fiscal year so long as no Default or Event of Default has occurred and is continuing (both before and after giving effect to such Restricted Payment).”
(e) New paragraph 6N is added to the Agreement, such paragraph 6N to read as follows:
Additional Funded Debt. The Borrower shall not incur any additional debt without the County's prior written approval; provided, however, that the Borrower may enter into unsecured short-term loans made by individuals (not a commercial bank) that are less than or equal to Two Hundred Thousand and 00/100 Dollars ($200,000.00) in principal borrowed and have a term less than nine months unless otherwise approved by the County Manager or her designee. The total outstanding amount of these short-term loans shall not exceed Four Hundred Thousand and 00/100 Dollars ($400,000.00). The Borrower shall provide notification to the County Manager when it enters into such short-term loans.