(b) — Interest Coverage Ratio Sample Clauses
The Interest Coverage Ratio clause sets a minimum threshold for the ratio of a company's earnings to its interest expenses, ensuring the company maintains sufficient income to cover its debt obligations. Typically, this clause requires the borrower to regularly calculate and report the ratio, often using metrics like EBITDA divided by interest payments, and to remain above a specified minimum level. Its core function is to protect lenders by monitoring the borrower's financial health and ability to service debt, thereby reducing the risk of default.
(b) — Interest Coverage Ratio. A. Adjusted Consolidated EBITDA for four consecutive fiscal quarters ending on the Statement Date, except that for the period ending September 30, 2008, such calculation shall be done on a pro forma basis (“Subject Period”) (see Credit Agreement definition of “Consolidated EBITDA” and “Adjusted Consolidated EBITDA”):
1. Consolidated EBITDA for Subject Period: $
2. Distribution Equivalent Amount for Subject Period $
3. Adjusted Consolidated EBITDA (Lines II.A.1 + II.A.2) $
B. Consolidated Interest Charges for the Subject Period
1. Consolidated Interest Charges for the four consecutive fiscal quarters ending on the Statement Date): $
2. Pro forma adjustment for Consolidated Interest Charges during the four consecutive fiscal quarters ending on the Statement Date (Section 7.16(c)): $
3. Consolidated Interest Charges (Lines II.B.1 + II.B.2): $
C. Interest Coverage Ratio 1. Adjusted Consolidated EBITDA (Line II.A.3): $
(b) — Interest Coverage Ratio. Adjusted Consolidated EBITDA for four consecutive fiscal quarters ending on the Statement Date, except that for periods ending December 31, 2007, March 31, 2008, June 30, 2008 and September 30, 2008, such calculations shall be done on a pro forma basis (“Subject Period”) (see Credit Agreement definition of “Consolidated EBITDA” and “Adjusted Consolidated EBITDA”):
(b) — Interest Coverage Ratio. EBITDA (as defined in the Agreement) of Lead Borrower and its Subsidiaries for the Subject Period (see Line I.A. above): $
(b) — Interest Coverage Ratio. A. Numerator (for the prior trailing 12-month period then ending on the most recent fiscal quarter end available):
i. Operating income (measured in accordance with GAAP) plus depreciation and amortization included in COGS $
ii. [***] of general and administration costs (G&A, as measured in accordance with GAAP) $
iii. [***] percent of sales and marketing costs (S&M, as measured in accordance with GAAP) $
iv. [***] percent of research and development costs (R&D, as measured in accordance with GAAP) $ v. Sum of Line II.A.i + Line II.A.ii + Line II.A.iii + Line II.A.iv $ 1 Only applicable to Acquisitions with a Cost of Acquisition in excess of $5,000,000.
(b) — Interest Coverage Ratio. EBITDA for the Subject Period (Line I.B) Alternatively, Historically EBITDA should be used, as applicable. $_____________
(b) — Interest Coverage Ratio. EBITDA for four consecutive fiscal quarters ending on above date (“Subject Period”):
(b) — Interest Coverage Ratio. Adjusted Consolidated EBITDA for four consecutive fiscal quarters ending on the Statement Date (“Subject Period”) (see Credit Agreement definition of “Consolidated EBITDA” and “Adjusted Consolidated EBITDA”):
(b) — Interest Coverage Ratio. A. EBITDA for four consecutive fiscal quarters ending on above date (“Subject Period”):
1. Net income or net loss (before provision for income taxes) for Subject Period: $
2. All Interest Expense for Subject Period: $
3. Depreciation expenses for Subject Period: $
4. Amortization expenses for Subject Period: $
5. Non-cash charges for Subject Period: $
6. One-time cash charges associated with merger or acquisition-related expenses which are paid in the Subject Period: $
7. One-time cash charges associated with restructuring costs which are paid in the Subject Period: $
8. One-time cash charges associated with net losses from the early extinguishment of notes or other Indebtedness, which are paid in the Subject Period: $
(b) — Interest Coverage Ratio a. Net income of borrower for twelve month period preceding the applicable date
b. Extraordinary items for the twelve month period preceding the applicable date
c. Interest Expense for the twelve month period preceding the applicable date
d. Federal and State income taxes incurred during such period e. a minus b, plus c plus d
(b) — Interest Coverage Ratio of the Credit Agreement is hereby amended by deleting “3.00:1.00” and inserting in lieu thereof “2.25:1.00” and by inserting the following new row at the bottom of the grid in Section 7.18(b): December 31, 2008 2.75:1.00
(g) Section 7.18(c) (Maximum Leverage Ratio) is hereby amended by deleting “3.50:1.00” and “3.00:1.00” and inserting in lieu thereof “4.00:1.00”.
(h) Schedule C-1 is hereby deleted in its entirety and replaced with Schedule C-1 attached hereto.