Debt Covenants. Following the Closing, the Purchasers shall not cause the Company to (a) enter into any transaction with the Purchasers or any Affiliate of the Purchasers including payment of management fees other than expenses reimbursement and standard directors compensation, or (b) effect any dividend distributions, in either case, to the extent such transaction or dividend distributions would violate, and cause the Company to be in default under, the terms of its Series C Debentures (as modified by the Company Debt Modifications).
Debt Covenants. Borrowings under the Company’s debt agreements are subject to various covenants that limit the Company’s ability to incur additional indebtedness, sell assets, effect mergers and certain transactions, and effect certain transactions with subsidiaries and affiliates. In addition, the 2027 Credit Facility, and the Delayed Draw Term Loan also require that the Company maintain a maximum ratio of total indebtedness to EBITDA (earnings before interest expense, taxes, depreciation and amortization), and a minimum interest coverage ratio. The Company is also subject to certain covenants requiring the Company to offer to repurchase the 2025 Notes, 2026 Notes, 2028 Notes, 2029 Notes, and 2030 Notes (collectively the “Notes”) upon a change of control. As of March 31, 2023 and 2022, the Company was in compliance with its debt covenants. The weighted-average interest rates for the Company's long-term debt were 4.7% and 4.0% as of March 31, 2023 and 2022, respectively. Scheduled repayments of the Company's bank borrowings and long-term debt are as follows: Fiscal Year Ending March 31, Amount (In millions) 2024 $ 150 2025 253 2026 1,285 2027 — 2028 546 Thereafter 1,628 Total $ 3,862
Debt Covenants. So long as the Notes are outstanding, each Borrower jointly and severally covenants and agrees that, until all Note Indebtedness has been paid in full, it will comply with the covenants set forth in Exhibit F attached hereto.
Debt Covenants. Section 6.3 of the LC Agreement is hereby --------------- amended by deleting such section in its entirety and substituting the following in lieu thereof:
Debt Covenants. During the entire Term, LodgeNet hereby makes to Hilton and agrees to meet and maintain each of the covenants set forth in that certain $150,000,000 Second Amended and Restated Credit Agreement dated as of February 25, 1999 by and among LodgeNet, National Westminster Bank PLC, as Administrative Agent, BankBoston, N.A and Xxxxxx Xxxxxxx Senior Funding, Inc. as Syndication Agents, and the Lenders Named Therein, as amended or superseded from time to time, which covenants are incorporated herein by reference.
Debt Covenants. The company was in compliance with the covenants in its senior secured credit facility and its other credit facilities and debt instruments during the thirteen weeks ended August 26, 2000 and, with continuing improvements in operating performance, anticipates that it will remain in compliance with its debt covenants during the remainder of fiscal 2001. However, variations in the company's operating performance and unanticipated developments may adversely affect its ability to remain in compliance with the applicable debt covenants. As it monitors future performance and developments, management may, from time-to-time, pursue modifications or waivers with respect to particular covenants as it deems appropriate. Although the company believes that its relations with its principal lenders are generally good, there can be no assurance that any such modifications or waivers, if sought, would be obtained. Net Cash Used in Operating, Investing and Financing Activities The company used $562.0 million of cash to fund operations in the twenty-six weeks ended August 26, 2000. Operating cash flow was negatively impacted by $300.0 million that was used to repurchase accounts receivable when the accounts receivable securitization facility was terminated. In addition, operating cash flow was negatively impacted by $280.1 million in interest payments and by seasonal inventory builds. Operating cash flow benefited from an increase in accounts payable partially offset by a decrease in other liabilities. In the twenty-six weeks ended August 28, 1999, cash provided by operations was $119.0 million. Operating cash flow was negatively impacted by seasonal inventory builds, which was partially offset by a corresponding increase in accounts payable. Cash used for investing activities was $20.2 million and $458.9 million for the twenty-six weeks ended August 26, 2000 and August 28, 1999, respectively. Cash used for store construction and relocations amounted to $59.9 million and $405.6 million for the twenty-six weeks ended August 26, 2000 and August 28, 1999, respectively. In addition, cash of $24.5 million was used to acquire the assets of Edgehill in fiscal 2000. Working Capital Net working capital was $965.8 million at August 26, 2000, compared to $720.0 million at February 26, 2000. The current ratios were 1.39% and 1.31%, respectively. Capital Expenditures The company plans to make total capital expenditures of approximately $160.0 million to $190.0 million during fiscal 2001....
Debt Covenants. 3.4 Legal due diligence shall be conducted by the legal advisor and it should be verifying the Company’s legal records, material contracts and litigation. Key areas of focus shall include:
Debt Covenants. As of December 31, 1999 and March 31, 2000, the Company was not in compliance with certain formula-based covenants in its credit facilities. If the lenders do not waive this failure to comply, a majority of the lenders could declare an event of default, which would allow the lenders to accelerate payment of all amounts due under the credit facilities. Additionally, this noncompliance results in higher interest costs, and the lenders may require additional concessions from the Company before giving a waiver. In the event of default under the credit facilities, the holders of the convertible subordinated notes could also declare the Company to be in default. The Company is highly leveraged and would be unable to pay the accelerated amounts that would become immediately payable if default were declared. As a result of this non-compliance, all debt outstanding under the credit facility and the convertible subordinated notes as of December 31, 1999 and March 31, 2000 that is potentially due within one year has been reclassified from long-term debt to a current classification. Under these conditions, the Company is currently unable to draw additional amounts under the credit facilities. The Company is currently in discussions with the lenders regarding obtaining a waiver of these violations or restructuring the credit facilities. Actions the Company has taken and is taking to ensure its ongoing ability to cover scheduled debt service include divestiture of operations outside the continental U.S., curtailment of new facility acquisitions and developments, improvements in billing and cash collections processes, increased management controls over expenditures, and evaluations of alternative capital sources, as well as pursuing debt restructuring with the current lenders. Prior to March 2000, the Company focused its attention primarily on those actions that would improve operating performance and cash flows, as well as filling key senior management positions. Given the progress made in these areas, the Company has now entered into more active discussions with its lenders for an acceptable restructuring arrangement. Management believes it is unlikely that an event of default will be declared because of the Company's substantial cash balance and because cash flows are expected to be sufficient to cover operating requirements and scheduled debt service through 2001. Long-term debt is comprised of the following: March 31, 2000 ----------- December 31, 1999 ------------ ...
Debt Covenants. As of December 31, 1999, the Company was not in compliance with certain covenants in its credit facilities. As a result of this non-compliance, all debt outstanding under the credit facilities and the convertible subordinated notes as of December 31, 1999 was potentially callable and due within one year, and therefore had been reclassified from long-term debt to a current classification. On July 14, 2000 a restructuring of the credit facilities was completed, and the Company is now in compliance with all credit facility covenants. Accordingly, the long-term portion of our debt was not classified as a current liability as of June 30, 2000. The major terms of the restructured credit facilities include the collateralization of the debt with substantially all of the Company's assets, reduction in the revolving credit availability to $150,000 together with conversion of $299,000 of the revolving facility into a term loan, and a new quarterly amortization schedule beginning September 30, 2000. In conjunction with the restructuring a permanent pay down of $50,000 was made and the associated interest rates were returned to the lower LIBOR-based rate formulas in effect prior to the non-compliance. The new financial covenants reflect the Company's current financial position and projected operating results and plans. Long-term debt is comprised of the following: June 30, 2000 ---------- December 31, 1999 ------------ Credit facilities................................. $ 819,996 $ 959,610 Convertible subordinated notes, 7%, due 2009...... 345,000 345,000 Convertible subordinated notes, 5 5/8%, due 2006.. 125,000 125,000 Acquisition obligations and other notes payable... 12,986 21,482 Capital lease obligations......................... 6,389 ---------- 1,309,371 6,799 ----------- 1,457,891 Less current portion.............................. (121,237) ---------- $1,188,134 ========== (1,452,195) ----------- $ 5,696 ===========
Debt Covenants. The Company must comply with various restrictive debt covenants that require the maintenance of certain financial ratios and other financial conditions. The most restrictive covenants limit the ratio of debt to equity, the ratio of earnings before interest, taxes and non-cash expenses to fixed charges, the Company's investment in its subsidiaries, the ratio of debt to advances, the ratio of debt to gross installment contracts receivable and the ratio of advances to installment contracts receivable, and require that the Company maintain specified minimum levels of net worth.
