{"component": "clause", "props": {"groups": [{"size": 14, "snippet": "Permit the Fixed Charge Coverage Ratio, as of any day, to be less than 1.50 to 1.00.", "snippet_links": [{"key": "fixed-charge-coverage-ratio", "type": "definition", "offset": [11, 38]}], "samples": [{"hash": "6jRFnQM6zYy", "uri": "/contracts/6jRFnQM6zYy#fixed-charge-coverage", "label": "Unsecured Credit Agreement (BioMed Realty L P)", "score": 24.7453804016, "published": true}, {"hash": "a4AjE7ecHPe", "uri": "/contracts/a4AjE7ecHPe#fixed-charge-coverage", "label": "Unsecured Term Credit Agreement (BioMed Realty L P)", "score": 23.25872612, "published": true}, {"hash": "670G0NNo7q0", "uri": "/contracts/670G0NNo7q0#fixed-charge-coverage", "label": "Unsecured Credit Agreement (BioMed Realty L P)", "score": 22.5441474915, "published": true}], "hash": "362dce2259d965e5173d7840d1bda568", "id": 5}, {"size": 11, "snippet": "As at the end of any fiscal quarter or other date of measurement, the Borrower shall not permit 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Restricted Payments...............................................................................44 SECTION 5.11. Negative Pledge...................................................................................44 SECTION 5.12. Consolidations, Mergers and Sales of Assets.......................................................46 SECTION 5.13. Use of Proceeds...................................................................................47 SECTION 5.14. Transactions with Affiliates......................................................................47", "snippet_links": [{"key": "restricted-payments", "type": "definition", "offset": [17, 36]}, {"key": "negative-pledge", "type": "clause", "offset": [132, 147]}, {"key": "mergers-and-sales-of-assets", "type": "clause", "offset": [263, 290]}, {"key": "use-of-proceeds", "type": "definition", "offset": [362, 377]}, {"key": "transactions-with-affiliates", "type": "definition", "offset": [477, 505]}], "samples": [{"hash": "cci2OsbSDuh", "uri": "/contracts/cci2OsbSDuh#fixed-charge-coverage", "label": "Credit Agreement (Tyco International LTD)", "score": 18.0, "published": true}, {"hash": "blSQizvV9HX", "uri": "/contracts/blSQizvV9HX#fixed-charge-coverage", "label": "364 Day Credit Agreement (Tyco International LTD)", "score": 18.0, "published": true}], "hash": "66a564c86e2453331d9fa96780e1b665", "id": 9}, {"size": 11, "snippet": "Borrower shall maintain on a consolidated basis a ratio of Fixed Charge Coverage (for the four most recent fiscal quarters) of at least 1.4 to 1.0. As used in this Agreement, \"Fixed Charge Coverage\" means for any period the ratio derived by dividing (a) the sum of net income for such period (before income taxes, patronage dividends, and extraordinary items) plus Fixed Charges by (b)", "snippet_links": [{"key": "borrower-shall", "type": "clause", "offset": [0, 14]}, {"key": "consolidated-basis", "type": "clause", "offset": [29, 47]}, {"key": "ratio-of", "type": "clause", "offset": [50, 58]}, {"key": "most-recent", "type": "definition", "offset": [95, 106]}, {"key": "fiscal-quarters", "type": "definition", "offset": [107, 122]}, {"key": "used-in-this-agreement", "type": "clause", "offset": [151, 173]}, {"key": "sum-of", "type": "clause", "offset": [258, 264]}, {"key": "net-income", "type": "clause", "offset": [265, 275]}, {"key": "income-taxes", "type": "definition", "offset": [300, 312]}, {"key": "patronage-dividends", "type": "definition", "offset": [314, 333]}, {"key": "extraordinary-items", "type": "definition", "offset": [339, 358]}, {"key": "fixed-charges", "type": "clause", "offset": [365, 378]}], "samples": [{"hash": "kWELUULEspu", "uri": "/contracts/kWELUULEspu#fixed-charge-coverage", "label": "Credit Agreement (United Grocers Inc /Or/)", "score": 18.0, "published": true}, {"hash": "2mJ7oO17fdW", "uri": "/contracts/2mJ7oO17fdW#fixed-charge-coverage", "label": "Credit Agreement (United Grocers Inc /Or/)", "score": 18.0, "published": true}], "hash": "3ed6e74727c7061c09f42b5bec20840b", "id": 10}], "next_curs": "Cl4SWGoVc35sYXdpbnNpZGVyY29udHJhY3RzcjoLEhZDbGF1c2VTbmlwcGV0R3JvdXBfdjU2Ih5maXhlZC1jaGFyZ2UtY292ZXJhZ2UjMDAwMDAwMGEMogECZW4YACAA", "clause": {"parents": [["financial-covenants", "Financial Covenants"], ["negative-covenants", "NEGATIVE COVENANTS"], ["covenants", "COVENANTS"], ["affirmative-covenants", "AFFIRMATIVE COVENANTS"], ["financial-condition-covenants", "Financial Condition Covenants"]], "size": 1160, "title": "Fixed Charge Coverage", "children": [["", ""], ["loan-documents", "Loan Documents"], ["covenants", "Covenants"], ["events-of-default", "Events of Default"], ["liens", "Liens"]], "id": "fixed-charge-coverage", "related": [["minimum-fixed-charge-coverage", "Minimum Fixed Charge Coverage", "Minimum <strong>Fixed Charge Coverage</strong>"], ["fixed-charge-coverage-ratio", "Fixed Charge Coverage Ratio", "<strong>Fixed Charge Coverage</strong> Ratio"], ["minimum-fixed-charge-coverage-ratio", "Minimum Fixed Charge Coverage Ratio", "Minimum <strong>Fixed Charge Coverage</strong> Ratio"], ["consolidated-fixed-charge-coverage-ratio", "Consolidated Fixed Charge Coverage Ratio", "Consolidated <strong>Fixed Charge Coverage</strong> Ratio"], ["minimum-consolidated-fixed-charge-coverage-ratio", "Minimum Consolidated Fixed Charge Coverage Ratio", "Minimum Consolidated <strong>Fixed Charge Coverage</strong> Ratio"]], "related_snippets": [], "updated": "2026-03-14T06:33:37+00:00", "also_ask": ["What are the most negotiable elements in a Fixed Charge Coverage clause?", "Which drafting terms are essential to prevent loopholes or manipulation?", "What are the most common risks or pitfalls that could render this clause unenforceable?", "How does this clause compare to Debt Service Coverage Ratio provisions in similar agreements?", "What factors do courts consider when determining the enforceability of Fixed Charge Coverage requirements?"], "drafting_tip": "Define 'fixed charges' precisely to avoid ambiguity; specify calculation method to ensure consistency; set minimum coverage ratio to protect lender interests.", "explanation": "The Fixed Charge Coverage clause defines a financial metric used to assess a borrower's ability to meet its fixed financial obligations, such as debt payments, lease payments, and other recurring charges. Typically, this clause requires the borrower to maintain a minimum ratio of earnings to fixed charges, calculated over a specified period, and may be tested quarterly or annually. By setting this requirement, the clause helps lenders ensure that the borrower remains financially stable and capable of servicing its debts, thereby reducing the lender's risk of default."}, "json": true, "cursor": ""}}