Common use of Adjustment of Permitted Leverage Ratio Clause in Contracts

Adjustment of Permitted Leverage Ratio. If at any time at which the Permitted Leverage Ratio is less than 55%, Borrower shall satisfy the Interest Coverage Test (which for purposes of this Section 9.2(c) shall be deemed satisfied only if, on the same day on which Borrower satisfies the Interest Coverage Test, Borrower is also in compliance with the Leverage Test), then the Permitted Leverage Ratio, effective as of the fiscal quarter immediately following the fiscal quarter with respect to which Borrower shall have so satisfied the Interest Coverage Test, shall be increased as follows: (i) upon satisfaction of the Interest Coverage Test on a date on which the Permitted Leverage Ratio is 50%, the Permitted Leverage Ratio for the next fiscal quarter shall be increased to 55%; and (ii) upon satisfaction of the Interest Coverage Test on a date on which the Permitted Leverage Ratio is less than 50%, the Permitted Leverage Ratio for the next fiscal quarter shall be increased by 2.5%. In no event shall the Permitted Leverage Ratio exceed 55%.

Adjustment of Permitted Leverage Ratio. If at any time at which the Permitted Leverage Debt to Capitalization Ratio is less than 55%, Borrower shall satisfy have satisfied the Interest Coverage Test (which for purposes of this Section 9.2(c5.2(a)(ii) shall be deemed satisfied only if, on the same day on which Borrower satisfies the Interest Coverage Test, Borrower is also in compliance with the Leverage TestDebt to Capitalization Covenant), then the Permitted Leverage Debt to Capitalization Ratio, effective as of the fiscal quarter immediately following the fiscal quarter with respect to which Borrower shall have so satisfied the Interest Coverage Test, shall be increased as follows: (i) upon satisfaction of the Interest Coverage Test on a date on which the Permitted Leverage Debt to Capitalization Ratio is 50%, the Permitted Leverage Debt to Capitalization Ratio for the next fiscal quarter shall be increased to 55%; and (ii) upon satisfaction of the Interest Coverage Test on a date on which the Permitted Leverage Debt to Capitalization Ratio is less than 50%, the Permitted Leverage Debt to Capitalization Ratio for the next fiscal quarter shall be increased by 2.5%. In no event shall the Permitted Leverage Debt to Capitalization Ratio exceed 55%.

Adjustment of Permitted Leverage Ratio. If at any time at which the Permitted Leverage Ratio is less than 5557.5%, Borrower shall satisfy have satisfied the Interest Coverage Test (which for purposes of this Section 9.2(c6.25(c) shall be deemed satisfied only if, on the same day on which Borrower satisfies the Interest Coverage Test, Borrower is also in compliance with the Leverage TestCovenant), then the Permitted Leverage Ratio, effective as of the fiscal quarter immediately following the fiscal quarter with respect to which Borrower shall have so satisfied the Interest Coverage Test, shall be increased as follows: (i) upon satisfaction of the Interest Coverage Test on a date on which the Permitted Leverage Ratio is 5052.5%, the Permitted Leverage Ratio for the next fiscal quarter shall be increased to 5557.5%; and (ii) upon satisfaction of the Interest Coverage Test on a date on which the Permitted Leverage Ratio is less than 5052.5%, the Permitted Leverage Ratio for the next fiscal quarter shall be increased by 2.5%. (By way of example, if the Permitted Leverage Ratio was 47.5% prior to the satisfaction of the Interest Coverage Test, the Permitted Leverage Ratio for the next fiscal quarter shall be 50.0%.) The increased Permitted Leverage Ratio shall remain in effect unless and until further increased pursuant to this Section 6.25(c) or decreased pursuant to Section 6.25(b). In no event shall the Permitted Leverage Ratio exceed 5557.5%.