Debt Service Test. The Company will not, and will not permit any of its Subsidiaries to, incur any Debt (including without limitation Acquired Debt) if the ratio of the Company’s and its Subsidiaries’ EBITDA to the Company’s and its Subsidiaries’ Interest Expense for the period consisting of the four consecutive fiscal quarters ending with the latest quarter covered in the Parent’s annual or quarterly report most recently furnished to Holders of the Notes or filed with the SEC, as the case may be, most recently ended prior to the date on which such additional Debt is to be incurred shall have been less than 1.5:1 on a pro forma basis after giving effect to the incurrence of such Debt and the application of the proceeds from such Debt, and calculated on the following assumptions:
(1) such Debt and any other Debt (including, without limitation, Acquired Debt) incurred by the Company or any of its Subsidiaries since the first day of such four-quarter period had been incurred, and the application of the proceeds from such Debt (including to repay or retire other Debt) had occurred, on the first day of such period;
(2) the repayment or retirement of any other Debt of the Company or any of its Subsidiaries since the first day of such four-quarter period had occurred on the first day of such period (except that, in making this computation, the amount of Debt under any revolving credit facility, line of credit or similar facility will be computed based upon the average daily balance of such Debt during such period); and
(3) in the case of any acquisition or disposition by the Company or any of its Subsidiaries of any asset or group of assets with a fair market value (as determined by the Company in its reasonable discretion) in excess of $1,000,000 since the first day of such four-quarter period, whether by merger, stock purchase or sale or asset purchase or sale or otherwise, such acquisition or disposition had occurred as of the first day of such period with the appropriate adjustments with respect to such acquisition or disposition being included in such pro forma calculation.
Debt Service Test. In addition to the limitations set forth in Sections 2.1 and 2.2 above, the Operating Partnership will not Incur, or permit any Consolidated Subsidiary
Debt Service Test. The determination by Agent, in its sole discretion exercised in good faith, that the Property has generated Net Operating Income during the immediately preceding three (3) months which, when annualized, equals or exceeds the product of (a) with respect to a proposed reduction in the Interest Rate payable under the Loan Documents, as contemplated in the definition of “LIBOR Rate” below, 1.00 times Debt Service (the “Interest Rate Reduction Debt Service Test”), (b) with respect to the condition set forth in Section 1.4(b) hereof for the Second Extension Period, as determined as of the first day of such Extension Period, 1.00 times Debt Service (the “Extension Debt Service Test”), and (c) with respect to a proposed reduction in the liability of Borrower under the Loan Documents, as contemplated in Section 8.17 hereof, 1.00 times Debt Service (the “Recourse Reduction Debt Service Test”).
Debt Service Test. 60 SECTION 1006.
Debt Service Test. 1. Gross Cash Receipts (See B.1. above)
2. Operating Expenses (See B.2 above)
3. Net Operating Income (See B.3 above)
4. Divide total on line 3 by 1.75
5. Divide total on line 4 by 12
6. Constant based on 10 year Treasury Obligations (yield supplied by Agent) + 2.0% and 25 year mortgage style amortization
7. Total on line 5 divided by constant on line 6, which total is multiplied by 12, equals Debt Service Coverage Amount
Debt Service Test. 48 SECTION 1006. SECURED DEBT TEST..............................................48 SECTION 1007. MAINTENANCE OF TOTAL UNENCUMBERED ASSETS.......................49 SECTION 1008. EXISTENCE......................................................49
Debt Service Test. 19.1.1 The Borrowers undertake that with effect from the Utilisation Date the ratio of the aggregate of Net Operating Income and Management Borrower Operating Income to Debt Service shall be no less than 1.05 on any two consecutive Payment Dates.
19.1.2 Subject to clause 19.1.3 below the ratio referred to in clause 19.1.1 will be tested quarterly on each Payment Date by reference to:
(a) Net Operating Income and Management Borrower Operating Income for the four financial quarters ending before the Payment Date; and
(b) Debt Service for the three months preceding the Payment Date, multiplied by four.
19.1.3 For the first full financial year following the date of this Agreement, the ratio referred to in clause 19.1.1 will be tested quarterly on each Payment Date after and including 8th August 2006 by reference to:
(a) Net Operating Income and Management Borrower Operating Income for each completed financial quarter since the date of this Agreement; and
(b) Debt Service for the three months following the Payment Date, multiplied by the number of completed financial quarters referred to in (a).
Debt Service Test. 1. Total Gross Cash Receipts (See B.1. above)
2. Total Operating Expenses (See B.2 above)
3. Total Net Operating Income (See B.3 above) 4. Divide total on line 3 by 1.75
Debt Service Test. The Company will not, and will not permit any of its Subsidiaries to, incur any Debt if the ratio of the Company’s Consolidated Income Available for Debt Service to the Company’s Annual Debt Service Charge for the four consecutive fiscal quarters most recently ended prior to the date on which such Debt is to be incurred would be less than 1.5 to 1.0, calculated on a pro forma basis after giving effect to the incurrence of such Debt and to the application of the proceeds therefrom, and calculated on the assumptions that:
(i) such Debt and any other Debt (including, without limitation, Acquired Debt) incurred by the Company or its Subsidiaries since the first day of such four quarter period and the application of the proceeds therefrom, including to refinance other Debt
Debt Service Test. 1. Total Gross Cash Receipts (See B.1. above)
2. Total Operating Expenses (See B.2 above)
3. Total Net Operating Income (See B.3 above)
4. Divide total on line 3 by 1.75
5. Divide total on line 4 by 12
6. Constant based on 10 year Treasury Obligations (yield supplied by Agent) + 2.0% and 25 year mortgage style amortization
7. Total on line 5 divided by constant on line 6, which total is multiplied by 12, equals aggregate Debt Service Coverage Amount
8. Total of Line 7 increased, with approval of the Majority Banks, by the book value of other minority interests
