Common use of Cash Flow Leverage Ratio Clause in Contracts

Cash Flow Leverage Ratio. The Company will not permit the Cash Flow Leverage Ratio, as of the end of any fiscal quarter of the Company, to exceed 3.25 to 1.00; provided, however, that, in connection with any Permitted Acquisition for which the purchase consideration equals or exceeds $200,000,000 (including the Finishing Group Acquisition), the maximum Cash Flow Leverage Ratio, with prior notice to the holders of the Notes, shall increase to 3.75 to 1.00 for the four fiscal quarter period beginning with the quarter in which such Permitted Acquisition occurs, so long as (i) the Company is in pro forma compliance herewith at such 3.75 to 1.00 level before and after giving effect to such Permitted Acquisition and (ii) after any such Permitted Acquisition that results in an increase to the 3.75 to 1.00 level, the Cash Flow Leverage Ratio permitted under this paragraph 6A(1) shall decrease to 3.25 to 1.00 for at least one fiscal quarter before becoming eligible to again increase to 3.75 to 1.00 for a new period of four consecutive fiscal quarters (with the understanding that any Permitted Acquisition occurring during such fiscal quarter would be required to comply with the 3.25 to 1.00 ratio).

Appears in 3 contracts

Samples: Intercreditor and Collateral Agency Agreement, Note Agreement (Graco Inc), Pledge Agreement (Graco Inc)

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Cash Flow Leverage Ratio. The Company will not permit Permit the Cash Flow Leverage Ratio, calculated as provided in the definition thereof for each period of the end of any four consecutive fiscal quarter of the Companyquarters, to exceed 3.25 to 1.00; provided, however, that, that in connection with any Permitted Acquisition for which the purchase consideration equals or exceeds $200,000,000 (including the Finishing Group Acquisition), the maximum Cash Flow Leverage Ratio, with prior notice to the holders of the NotesAgent, shall increase to 3.75 to 1.00 for the four fiscal quarter period beginning with the quarter in which such Permitted Acquisition occurs, so long as (i) the Company is in pro forma compliance herewith at such 3.75 to 1.00 level before and after giving effect to such Permitted Acquisition and (ii) after any such Permitted Acquisition that results in an increase to the 3.75 to 1.00 level, the Cash Flow Leverage Ratio permitted under this paragraph 6A(1) Section 9.9 shall decrease to 3.25 to 1.00 for at least one fiscal quarter before becoming eligible to again increase to 3.75 to 1.00 for a new period of four consecutive fiscal quarters (with the understanding that any Permitted Acquisition occurring during such fiscal quarter would be required to comply with the 3.25 to 1.00 ratio).

Appears in 1 contract

Samples: Credit Agreement (Graco Inc)

Cash Flow Leverage Ratio. The Company will not permit Permit the Cash Flow Leverage Ratio, calculated as provided in the definition thereof for each period of the end of any four consecutive fiscal quarter of the Companyquarters, to exceed 3.25 to 1.00; provided, however, that, that in connection with any Permitted Acquisition for which the purchase consideration equals or exceeds $200,000,000 (including the Finishing Group Acquisition), the maximum Cash Flow Leverage Ratio, with prior notice to the holders of the NotesAgent, shall increase to 3.75 to 1.00 for the four fiscal quarter period beginning with the quarter in which such Permitted Acquisition occurs, so long as (i) the Company is in pro forma compliance herewith at such 3.75 to 1.00 level before and after giving effect to such Permitted Acquisition and (ii) after any such Permitted Acquisition that results in an increase to the 3.75 to 1.00 level, the Cash Flow Leverage Ratio permitted under this paragraph 6A(1) Section 9.9 shall decrease to 3.25 to 1.00 for at least one fiscal quarter before becoming eligible to again increase to 3.75 to 1.00 for a new period of four consecutive fiscal quarters (with the understanding that any Permitted 50 Acquisition occurring during such fiscal quarter would be required to comply with the 3.25 to 1.00 ratio).

Appears in 1 contract

Samples: Credit Agreement (Graco Inc)

Cash Flow Leverage Ratio. The Company covenants that it will not permit the Cash Flow Leverage Ratio, as of the end of any fiscal quarter of the Company, to exceed 3.25 3.50 to 1.00; provided, however, that, in connection with any Permitted Acquisition for which the purchase consideration equals or exceeds $200,000,000 (including the Finishing Group Acquisition)200,000,000, the maximum Cash Flow Leverage Ratio, with prior notice to the holders of the Notes, shall increase to 3.75 4.00 to 1.00 for the four fiscal quarter period beginning with the quarter in which such Permitted Acquisition occurs, so long as (i) the Company is in pro forma compliance herewith at such 3.75 4.00 to 1.00 level before and after giving effect to such Permitted Acquisition and (ii) after any such Permitted Acquisition that results in an increase to the 3.75 4.00 to 1.00 level, the Cash Flow Leverage Ratio permitted under this paragraph 6A(1) shall decrease to 3.25 3.50 to 1.00 for at least one fiscal quarter before becoming eligible to again increase to 3.75 4.00 to 1.00 for a new period of four consecutive fiscal quarters (with the understanding that any Permitted Acquisition occurring during such fiscal quarter would be required to comply with the 3.25 3.50 to 1.00 ratio).

Appears in 1 contract

Samples: Guaranty Agreement (Graco Inc)

Cash Flow Leverage Ratio. The Company will not permit Permit the Cash Flow Leverage Ratio, calculated as provided in the definition thereof for each period of the end of any four consecutive fiscal quarter of the Companyquarters, to exceed 3.25 3.50 to 1.00; provided, however, that, that in connection with any Permitted Acquisition for which the purchase consideration equals or exceeds $200,000,000 (including the Finishing Group Acquisition)200,000,000, the maximum Cash Flow Leverage Ratio, with prior notice to the holders of the NotesAgent, shall increase to 3.75 4.00 to 1.00 for the four fiscal quarter period beginning with the quarter in which such Permitted Acquisition occurs, so long as (i) the Company is in pro forma compliance herewith at such 3.75 4.00 to 1.00 level before and after giving effect to such Permitted Acquisition and (ii) after any such Permitted Acquisition that results in an increase to the 3.75 4.00 to 1.00 level, the Cash Flow Leverage Ratio permitted under this paragraph 6A(1) Section 9.9 shall decrease to 3.25 3.50 to 1.00 for at least one fiscal quarter before becoming eligible to again increase to 3.75 4.00 to 1.00 for a new period of four consecutive fiscal quarters (with the understanding that any Permitted Acquisition occurring during such fiscal quarter would be required to comply with the 3.25 3.50 to 1.00 ratio).. 77

Appears in 1 contract

Samples: Pledge Agreement (Graco Inc)

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Cash Flow Leverage Ratio. The Company will not permit Permit the Cash Flow Leverage Ratio, calculated as provided in the definition thereof for each period of the end of any four consecutive fiscal quarter of the Companyquarters, to exceed 3.25 3.50 to 1.00; provided, however, that, that in connection with any Permitted Acquisition for which the purchase consideration equals or exceeds $200,000,000 (including the Finishing Group Acquisition)200,000,000, the maximum Cash Flow Leverage Ratio, with prior notice to the holders of the NotesAgent, shall increase to 3.75 4.00 to 1.00 for the four fiscal quarter period beginning with the quarter in which such Permitted Acquisition occurs, so long as (i) the Company is in pro forma compliance herewith at such 3.75 4.00 to 1.00 level before and after giving effect to such Permitted Acquisition and (ii) after any such Permitted Acquisition that results in an increase to the 3.75 4.00 to 1.00 level, the Cash Flow Leverage Ratio permitted under this paragraph 6A(1) Section 9.9 shall decrease to 3.25 3.50 to 1.00 for at least one fiscal quarter before becoming eligible to again increase to 3.75 4.00 to 1.00 for a new period of four consecutive fiscal quarters (with the understanding that any Permitted Acquisition occurring during such fiscal quarter would be required to comply with the 3.25 3.50 to 1.00 ratio).

Appears in 1 contract

Samples: Credit Agreement (Graco Inc)

Cash Flow Leverage Ratio. The Company will not permit Permit the Cash Flow Leverage Ratio, calculated as provided in the definition thereof for each period of the end of any four consecutive fiscal quarter of the Companyquarters, to exceed 3.25 3.50 to 1.00; provided, however, that, that in connection with any Permitted Acquisition for which the purchase consideration equals or exceeds $200,000,000 (including the Finishing Group Acquisition)300,000,000, the maximum Cash Flow Leverage Ratio, with prior notice to the holders of the NotesAgent, shall increase to 3.75 4.00 to 1.00 for the four fiscal quarter period beginning with the quarter in which such Permitted Acquisition occurs, so long as (i) the Company is in pro forma compliance herewith at such 3.75 4.00 to 1.00 level before and after giving effect to such Permitted Acquisition and (ii) after any such Permitted Acquisition that results in an increase to the 3.75 4.00 to 1.00 level, the Cash Flow Leverage Ratio permitted under this paragraph 6A(1) Section 9.9 shall decrease to 3.25 3.50 to 1.00 for at least one fiscal quarter before becoming eligible to again increase to 3.75 4.00 to 1.00 for a new period of four consecutive fiscal quarters (with the understanding that any Permitted Acquisition occurring during such fiscal quarter would be required to comply with the 3.25 3.50 to 1.00 ratio).. Section 9.10

Appears in 1 contract

Samples: Credit Agreement (Graco Inc)

Cash Flow Leverage Ratio. The Company will not permit the Cash Flow Leverage Ratio, as of the end of any fiscal quarter of the Company, to exceed 3.25 3.50 to 1.00; provided, however, that, in connection with any Permitted Acquisition for which the purchase consideration equals or exceeds $200,000,000 (including the Finishing Group Acquisition)200,000,000, the maximum Cash Flow Leverage Ratio, with prior notice to the holders of the Notes, shall increase to 3.75 4.00 to 1.00 for the four fiscal quarter period beginning with the quarter in which such Permitted Acquisition occurs, so long as (i) the Company is in pro forma compliance herewith at such 3.75 4.00 to 1.00 level before and after giving effect to such Permitted Acquisition and (ii) after any such Permitted Acquisition that results in an increase to the 3.75 4.00 to 1.00 level, the Cash Flow Leverage Ratio permitted under this paragraph 6A(1) shall decrease to 3.25 3.50 to 1.00 for at least one fiscal quarter before becoming eligible to again increase to 3.75 4.00 to 1.00 for a new period of four consecutive fiscal quarters (with the understanding that any Permitted Acquisition occurring during such fiscal quarter would be required to comply with the 3.25 3.50 to 1.00 ratio).

Appears in 1 contract

Samples: Note Agreement (Graco Inc)

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