Interest Coverage Ratio Test Sample Clauses
The Interest Coverage Ratio Test is a financial covenant used to assess a borrower's ability to meet interest payment obligations on its debt. It typically requires the borrower to maintain a minimum ratio of earnings (often EBITDA or a similar metric) to interest expenses over a specified period, such as quarterly or annually. For example, a loan agreement might stipulate that the borrower's interest coverage ratio must not fall below 2.0x. This clause serves to protect lenders by ensuring the borrower remains financially healthy enough to service its debt, thereby reducing the risk of default.
Interest Coverage Ratio Test. Satisfied if (A) is greater than or equal to (B) as of the most recent Payment Date Report
Interest Coverage Ratio Test. Neither the General Partner nor the Issuer will, nor will either of them permit any of its Subsidiaries to, incur any Debt if, immediately after giving effect to the incurrence of such Debt and the application of the proceeds from such Debt on a pro forma basis, the ratio of Property EBITDA to Interest Expense for the General Partner and its Subsidiaries determined on a consolidated basis in accordance with GAAP, in each case, for the then most recently ended four fiscal quarter period for which financial information is available prior to the incurrence of such Debt, would be less than 1.50 to 1.00.
Interest Coverage Ratio Test. For purposes of Section 6.10, the Interest Coverage Ratio shall be not less than: As of the Closing Date and for all Monthly Fiscal Periods ending on March 31, 2005 and thereafter and including the Annual Fiscal Period 2007: 1.80:1.00 Monthly Fiscal Periods ending in Annual Fiscal Period 2008 and thereafter: 1.75:1.00
Interest Coverage Ratio Test. A test that is satisfied at any time if the Interest Coverage Ratio is greater than or equal to 150%.