Increase of Permitted Leverage Ratio. If the Permitted Leverage Ratio, determined as of the last day of a fiscal quarter of the Borrower, is less than 60%, the Borrower shall satisfy the Interest Coverage Test (which for purposes of this Section 6.19(b)(iii) shall be deemed satisfied only if, on the same day on which Borrower satisfies the Interest Coverage Test, Borrower is also in compliance with the Leverage Test), then the Permitted Leverage Ratio, effective as of the fiscal quarter immediately following the fiscal quarter with respect to which the Borrower shall have so satisfied the Interest Coverage Test, shall be increased as follows: (i) upon satisfaction of the Interest Coverage Test at the end of a fiscal quarter for which the Permitted Leverage Ratio is 55%, the Permitted Leverage Ratio for the next fiscal quarter shall be increased to 60%; and (ii) upon satisfaction of the Interest Coverage Test at the end of a fiscal quarter for which the Permitted Leverage Ratio is less than 55%, the Permitted Leverage Ratio for the next fiscal quarter shall be increased by 2.5%. In no event shall the Permitted Leverage Ratio exceed 60%.
Appears in 4 contracts
Samples: Credit Agreement (M.D.C. Holdings, Inc.), Credit Agreement (M.D.C. Holdings, Inc.), Credit Agreement (M.D.C. Holdings, Inc.)
Increase of Permitted Leverage Ratio. If at any time at which the Permitted Leverage Ratio, determined as of the last day of a fiscal quarter of the Borrower, Ratio is less than 60%, the Borrower shall satisfy the Interest Coverage Test (which for purposes of this Section 6.19(b)(iii) shall be deemed satisfied only if, on the same day on which Borrower satisfies the Interest Coverage Test, Borrower is also in compliance with the Leverage Test), then the Permitted Leverage Ratio, effective as of the fiscal quarter immediately following the fiscal quarter with respect to which the Borrower shall have so satisfied the Interest Coverage Test, shall be increased as follows: (i) upon satisfaction of the Interest Coverage Test at the end of on a fiscal quarter for date on which the Permitted Leverage Ratio is 55%, the Permitted Leverage Ratio for the next fiscal quarter shall be increased to 60%; and (ii) upon satisfaction of the Interest Coverage Test at the end of on a fiscal quarter for date on which the Permitted Leverage Ratio is less than 55%, the Permitted Leverage Ratio for the next fiscal quarter shall be increased by 2.5%. In no event shall the Permitted Leverage Ratio exceed 60%.
Appears in 2 contracts
Samples: Credit Agreement (MDC Holdings Inc), Credit Agreement (MDC Holdings Inc)
Increase of Permitted Leverage Ratio. If the Permitted Leverage Ratio, determined as of the last day of a fiscal quarter of the Borrower, is less than 60%, the Borrower shall satisfy the Interest Coverage Test (which for purposes of this Section 6.19(b)(iii) shall be deemed satisfied only if, on the same day on which Borrower satisfies the Interest Coverage Test, Borrower is also in compliance with the Leverage Test), then the Permitted Leverage Ratio, effective as of the fiscal quarter immediately following the fiscal quarter with respect to which the Borrower shall have so satisfied the Interest Coverage Test, shall be increased as follows: (i) upon satisfaction of the Interest Coverage Test at the end of a fiscal quarter for which the Permitted Leverage Ratio is 55%, the Permitted Leverage Ratio for the next fiscal quarter shall be increased to 60%; and (ii) upon satisfaction of the Interest Coverage Test at the end of a fiscal quarter for which the Permitted Leverage Ratio is less than 55%, the Permitted Leverage Ratio for the next fiscal quarter shall be increased by 2.5%. In no event shall the Permitted Leverage Ratio exceed 60%.. Table of Contents
Appears in 1 contract
Samples: Credit Agreement (MDC Holdings Inc)