Funded Debt/EBITDA Clause Samples
The Funded Debt/EBITDA clause sets a financial covenant that limits the ratio of a company's funded debt to its earnings before interest, taxes, depreciation, and amortization (EBITDA). In practice, this clause requires the borrower to maintain its total funded debt below a specified multiple of its EBITDA, which is typically tested on a quarterly or annual basis. This ensures that the company does not become over-leveraged relative to its operating cash flow, thereby protecting lenders by reducing the risk of default due to excessive debt.
Funded Debt/EBITDA. The Borrower shall maintain a ratio of the average of Borrower's Funded Debt as of the last day of each Fiscal Month in the Fiscal-Quarter ending on the respective dates set forth below to EBITDA for the four-Fiscal-Quarter period then ended of not more than the ratio set forth opposite such Fiscal Quarter: Fiscal Quarter Ending Ratio --------------------- ----- June 26, 1997 6.00 to 1.00 and each Fiscal Quarter thereafter through the Fiscal Quarter ending December 31, 1998 April 1, 1999 5.75 to 1.00 July 1, 1999 5.50 to 1.00 September 30, 1999 5.25 to 1.00 December 31, 1999 5.00 to 1.00 March 30, 2000 4.75 to 1.00 June 29, 2000 4.50 to 1.00 September 28, 2000 4.25 to 1.00 December 31, 2000 4.00 to 1.00 and each Fiscal Quarter thereafter
Funded Debt/EBITDA. Borrowers shall maintain a ratio of their ------------------ consolidated Funded Debt to EBITDA, as calculated on a rolling four-quarter basis, of less than or equal to 3.0 to 1.0, as measured at the end of each Fiscal Quarter.
Funded Debt/EBITDA. Maintain, on a consolidated basis, a ratio of Funded Debt to EBITDA of not more than 4.0 to 1.0, determined as at the end of each fiscal quarter, provided, however, that upon successful placement of a Qualified Notes Offering, the Borrower shall maintain a ratio of Funded Debt to EBITDA of not more than 5.0 to 1.0, determined as at the end of each fiscal quarter;
Funded Debt/EBITDA. Permit, in the case of the Company on a Consolidated basis, (a) the ratio of Funded Debt (as defined below) to Earnings before Interest and Taxes plus Depreciation and Amortization ("EBITDA") as of the last day of any fiscal quarter, to be greater than 4.0 to 1.0 or (b) the ratio of Senior Debt (as defined below) to EBITDA, as of the last day of any fiscal quarter from the date hereof through March 31, 2001, to be greater than 3.25 to 1.0 or as of the last day of any fiscal quarter thereafter, to be greater than 3.0 to 1.0, such calculations to be based on an annual rolling basis of four fiscal quarters.
Funded Debt/EBITDA. Permit, in the case of the Company on a Consolidated bases, the ratio of Funded Debt (as defined below) to Earnings Before Interest and Taxes plus Depreciation and Amortization ("EBITDA") as of the last day of any fiscal quarter, to be greater than 3.75 to 1.0 as of the last day of the fiscal quarter ending September 30, 2001; 3.75 to 1.0 as of the last day of the fiscal quarter ending December 31, 2001; and 3.00 to 1.0 for each fiscal quarter thereafter, such calculations to be based on annual rolling basis of four fiscal quarters; provided, however, if the Company completes the Equity Offering (as defined in Section 6.16 hereof), then the following ratios shall apply in place of the foregoing ratios as of the end of the below indicated quarters: December 31, 2001 3.25 to 1.0 March 31, 2002 and each fiscal quarter thereafter 3.00 to 1.0.
Funded Debt/EBITDA. Paragraph 6.6B of the Original Credit Agreement is amended and restated in its entirety, effective as of December 31, 1996, as follows: The Borrower and Refinishers will not, on a consolidated basis, permit or suffer their ratio of (i) Funded Debt to (ii) EBITDA, as measured on the last day of each calendar quarter, in each case for the four calendar quarters preceding the date of measurement, to exceed:
(a) 3.75 to 1 with respect to the four quarter period ending on December 31, 1996; and
(b) 3.50 to 1 with respect to each four quarter period ending on or after March 31, 1997.
Funded Debt/EBITDA. The ratio, after giving effect to any Permitted Acquisition if audited financials are available or, if audited financials are not available, based on Determining Lender approval, of (a) the Companies' consolidated Funded Debt on the last day of any fiscal quarter to (b) their consolidated EBITDA for the 12-fiscal month period ending on that last day to ever exceed: =============================================================================== Period(s) Ratio =============================================================================== Each fiscal quarter from 9/28/96 through 1/2/99 4.00 to 1.00 ------------------------------------------------------------------------------- Each subsequent fiscal quarter 3.50 to 1.00 ===============================================================================
Funded Debt/EBITDA. The ratio of the Funded Debt of NCP-Seven to its EBITDA shall not exceed the ratio indicated below: Measured as of Funded Debt to EBITDA Ratio --------------------------- --------------------------- 2002 first fiscal quarter 6.45 to 1 2002 second fiscal quarter 6.10 to 1 2002 third fiscal quarter 6.00 to 1 2002 fourth fiscal quarter 5.90 to 1 2003 first fiscal quarter 5.90 to 1 2003 second fiscal quarter 5.45 to 1 2003 third fiscal quarter 5.30 to 1 2003 fourth fiscal quarter 5.20 to 1
Funded Debt/EBITDA. The ratio between Funded Debt and EBITDA on a running basis for the previous four quarters in respect of the Borrower on a consolidated basis at any time in the Loan Period exceeds 5.
Funded Debt/EBITDA. Permit, in the case of the Company on a Consolidated basis, the ratio of Funded Debt (as defined below) to Earnings before Interest and Taxes plus depreciation and amortization as of the last day of any fiscal quarter, calculated on an annual rolling basis of four fiscal quarters, to be greater than 3.0 to 1.0 as of any fiscal quarter end.