Debt Service Coverage Ratio Covenant. The Borrower covenants that beginning with its fiscal quarter end next following the date of this Agreement and continuing with each fiscal quarter thereafter, it shall not permit the ratio of its EBITDA, minus taxes paid in cash and Distributions to Interest Expense plus CMLTD to be less than 1.30 to 1.00. For purposes of calculating this covenant, EBITDA shall not include any gains or losses from the sale of assets outside the normal course of business or any other extraordinary accounting adjustments or non-recurring items of income or loss, all of the foregoing as determined by the Lender. This covenant will be measured quarterly on a rolling four quarter basis.
Debt Service Coverage Ratio Covenant. Borrower shall not permit the Debt Service Coverage Ratio (as defined below) determined at the last day of each fiscal quarter of Borrower for the four fiscal quarter period ending on such date to be less than 2.0 to 1.0. For the purposes hereof, (i) "Debt Service Coverage Ratio" shall mean, for any period, the ratio of Net Cash Flow for such period to Debt Service for such period, (ii) "Net Cash Flow" shall mean, for any period, the sum of (A) net income (or loss) for the applicable period of measurement determined in accordance with generally accepted accounting principles, plus (B) depreciation deducted in the determination of net income and (iii) "Debt Service" shall mean, for any period, the sum of, without duplication (A) scheduled payments of principal and all credit availability reductions during such period with respect to all indebtedness (including capitalized leases) of Borrower, plus (B) scheduled payments of interest during such period with respect to all indebtedness (including capitalized leases) of Borrower.
Debt Service Coverage Ratio Covenant. Commencing on December 31, 2019, Borrower shall at all times thereafter maintain a Debt Service Coverage Ratio greater than or equal to the Debt Service Coverage Ratio (Minimum).
Debt Service Coverage Ratio Covenant. (A) For each Fiscal Year, commencing with the Fiscal Year ended December 31, 2023, the Company will produce sufficient annual Gross Revenues in order to provide: (I) a Senior Debt Service Coverage Ratio equal to at least 150% for such Fiscal Year (the “Senior Parity Coverage Requirement”); and (II) a ratio of at least 110% of (a) Net Income Available for Debt Service to (b) all obligations of the Company which are charges, liens, Indebtedness or encumbrances upon or payable from the Gross Revenues, including but not limited to Senior Bonds, Parity Indebtedness and Subordinate Bonds (the “Overall Coverage Requirement”) calculated at the end of each Fiscal Year, based upon the Audited Financial Statements of the Company.
(B) If for any Fiscal Year, the Company’s Senior Parity Coverage Requirement falls below 150% or the Overall Coverage Requirement falls below 110%, the Company covenants to retain promptly an Independent Consultant to make recommendations to increase Net Income Available for Debt Service in the following Fiscal Year to the level required or, if in the opinion of the Independent Consultant the attainment of such level is impracticable, to the highest level attainable for such Fiscal Year and the number of Fiscal Years required to return the Company to compliance with the Senior Parity Coverage Requirement and the Overall Coverage Requirement. The Company will provide notice of the proposed retention of an Independent Consultant within three (3) Business Days of such retention to the Trustee (with a direction to the Trustee to notify Bondholders), which notice shall specify the identity of the Independent Consultant proposed to be retained by the Company, and as soon as practicable thereafter the Trustee shall, at the expense of the Company, notify all Holders of Bonds by means of a posting to EMMA of the identity of such Independent Consultant. If within 30 calendar days of providing such notice, the Majority Holders notify the Trustee in writing that they object to the retention of such Independent Consultant, such Independent Consultant shall not be retained by the Company and the Company will provide notice of the proposed retention of a different Independent Consultant in the same manner. If such objection has not been received by the Trustee within 30 calendar days of providing such notice, the retention of such Independent Consultant shall be deemed to have been approved by the Majority Holders. The process will continue until the Compa...
Debt Service Coverage Ratio Covenant. Permit the Debt Service Coverage Ratio for the most recently ended Debt Service Coverage Period to be less than 2.0 to 1.0.
Debt Service Coverage Ratio Covenant. Borrowers' failure to maintain the Debt Service Coverage Ratio as required under Section 8.12 of this Agreement.
Debt Service Coverage Ratio Covenant. Maintain, on the basis of Borrower’s consolidated financial statements and operating results (prepared in accordance with generally accepted accounting procedures) calculated as of the then most current Fiscal Year End for the then 12 month or four quarter period (“Period”), a minimum Debt Service Coverage Ratio before distributions of 1.40:1.00 and a minimum Debt Service Coverage Ratio after distributions of 1.10:1.00 tested annually, which “Debt Service Coverage Ratio” is defined as the ratio of (X) earnings before interest, taxes, depreciation and amortization for the Period to (Y) the sum of: i) the principal amount of all contractual debt payments owed to all lenders (excluding payables incurred in the ordinary course of business, but including debt due to shareholders or other related parties), maturing in the twelve (12) calendar months immediately succeeding the Period; plus, ii) total interest expense for the Period, iii) the projected sum of the first 12 monthly payments of principal and interest that would be due under any additional debt to be incurred by Borrowers which would result from the funding of any approved credit facility. This calculation will be performed by the Borrower in each Compliance Certificate submitted with annual financial reporting under Section 4.1(g) and shall be verified by the Lender. The Lender shall also test for covenant compliance upon receipt of each request for new store development funding from the Borrower, upon the occurrence of an Event of Default or if the Lender believes, in its sole discretion, that there has been a material adverse change in the Borrower’s financial condition. Customer #47856 Page 7 of 15 Loan #71329
Debt Service Coverage Ratio Covenant. Borrower shall not permit the Debt Service Coverage Ratio (as defined below) determined at the last day of each fiscal quarter of Borrower set forth below for the four fiscal quarter period ending on such date to be less than the ratio set forth below opposite such period: Fiscal Quarter Minimum Ratio -------------- ------------- Each fiscal quarter ending on or before September 26, 1998 1.25:1.0 Each fiscal quarter ending after September 26, 1998 1.50:1.0
Debt Service Coverage Ratio Covenant. The Borrower covenants that beginning with its fiscal year end next following the date of this Agreement and continuing with each fiscal year thereafter, it shall not permit the ratio of its EBITDA, minus taxes paid in cash and Distributions divided by Interest Expense plus CMLTD to be less than 1.30 to 1.00 for any fiscal year. For purposes of calculating this covenant, EBITDA shall not include any gains or losses from the sale of assets outside the normal course of business or any other extraordinary accounting adjustments or non- recurring items of income or loss, all of the foregoing as determined by the Lender. Product development payments to Lonza Sales, Ltd shall be added back to EBITDA up to $xxxxxxxxx in 2010 and $xxxxxxxxx for 2011. This covenant will be measured at and as of the end of each fiscal year end following Borrower’s submission of financial statements to Lender as required hereby and by instruments evidencing the Loans dated on or about even date herewith.
Debt Service Coverage Ratio Covenant
