Debt Service Test Sample Clauses

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. 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. 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. 60 SECTION 1006.

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

Debt Service Test. 51 SECTION 1006. SECURED DEBT TEST..............................................51 SECTION 1007. MAINTENANCE OF TOTAL UNENCUMBERED ASSETS.......................52 SECTION 1008. EXISTENCE......................................................52

Debt Service Test. 7 ARTICLE IV MISCELLANEOUS..............................................................................8 Section 4.1 Relationship with Indenture.......................................................8 Section 4.2 Trust Indenture Act Controls......................................................9 Section 4.3 Governing Law...........................................................................9 Section 4.4 Multiple Counterparts................................................................9 Section 4.5 Severability................................................................................9 Section 4.6 Ratification................................................................................9 Section 4.7 Headings..................................................................................10 Section 4.8 Effectiveness............................................................................10 This First Supplemental Indenture, dated as of November 24, 2014 (this “First Supplemental Indenture”), among Education Realty Operating Partnership, LP, a Delaware limited partnership (the “Operating Partnership”), Education Realty Trust, Inc., a Maryland corporation, as guarantor (the “Guarantor”), and U.S. Bank National Association, as trustee (the Trustee”), supplements that certain Indenture, dated as of November 7, 2014, among the Operating Partnership, the Guarantor and the Trustee (the “Original Indenture” and together with the First Supplemental Indenture, the “Indenture”).

Debt Service Test. On the first day of each calendar quarter, the Hotel Owners constituting at least seventy five percent (75%) of the total number of Hotel Owners (rounded to the nearest whole number) that have been open for business for at least three (3) months at the beginning of such period shall each have an Adjusted Net Income (calculated on an individual Hotel Owner basis) that equals or exceeds the interest payable (after taking account of any deferral thereof provided for in the Note) by the Borrower to the Lender in respect of the Tranche applicable to and actually funded to such Hotel Owner over the shorter period of (i) one year prior to such first day of the calendar quarter or (ii) the amount of time the Hotel Owner has been open for business.

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

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 since the first day of such period, had occurred as of the first day of such four quarter period; (ii) the repayment or retirement of any other Debt by the Company or its Subsidiaries since the first day of such four quarter period had been repaid or retired as of the first day of such period (except that, in making such computation, the amount of Debt under any revolving credit facility, line of credit or similar facility shall be computed based upon the average daily balance of such Debt during such period);