Leverage Ratio Covenant Clause Samples

Leverage Ratio Covenant. Beginning with the first fiscal quarter of the Borrower following the Revenue Covenant Termination Date, the Borrower shall not permit the Consolidated Leverage Ratio to exceed 4.50 to 1.00 as of the last day of any fiscal quarter of the Borrower (the “Leverage Ratio Covenant”).

Leverage Ratio Covenant. Under the leverage ratio covenant, the T&D Utility must maintain a ratio of Consolidated Indebtedness for Borrowed Money to Consolidated Capitalization of no greater than 0.68:1

Leverage Ratio Covenant. (i) Any Indebtedness secured by a Lien is incurred by Parent, any of its Consolidated Subsidiaries, or, without duplication, any Originator, such that, upon giving effect to such incurrence, the Leverage Ratio of Parent, its Consolidated Subsidiaries and, without duplication, the Originators, exceeds 6.00 to 1.00 as of any date during the period beginning on the date hereof and ending on the last day of the fiscal quarter ended December 31, 2021 or (ii) the Leverage Ratio of Parent, its Consolidated Subsidiaries and, without duplication, the Originators shall exceed, as of the last day of and for any fiscal quarter set forth below, the ratio set forth opposite such fiscal quarter in the table below (the “Leverage Ratio Covenant”):

Leverage Ratio Covenant. Section 5.20 of the Credit Agreement is amended by replacing the ratios set forth in the table therein, solely for the Fiscal Quarters set forth below, with the following ratios (and the remainder of such table shall remain without amendment) : Fiscal Quarter Ratio Third Fiscal Quarter 1996 4.75:1 Fourth Fiscal Quarter 1996 4.25:1 First Fiscal Quarter 1997 4.15:1 Second Fiscal Quarter 1997 3.95:1 Third Fiscal Quarter 1997 3.60:1 Fourth Fiscal Quarter 1997 3.35:1

Leverage Ratio Covenant. The Company shall not permit the Leverage Ratio - Covenant as of the last day of any Computation Period to exceed 3.25 to 1.00; provided that, other than with respect to the LEY Acquisition, to the extent the consideration paid in connection with any Acquisition equals or exceeds $500,000,000, at the election of the Company, during the Fiscal Quarter in which such Acquisition is consummated and during the three (3) subsequent Fiscal Quarters (each such four-Fiscal Quarter period, an "Acquisition Period"), the then applicable maximum Leverage Ratio - Covenant of 3.25 to 1.00 shall be deemed increased to 3.50 to 1.00. No more than two (2) Acquisition Periods shall exist during the term of the Revolving Credit Commitments. (d) Effective as of September 30, 2017, Section 8.3.3 [Certificate of the Company] of the Credit Agreement is hereby amended and restated in its entirety as follows:

Leverage Ratio Covenant. Maintain, on a consolidated basis, a Leverage Ratio not to exceed 2.45:1.00 for each calendar quarter beginning on July 1, 2014 and continuing thereafter until all of the Obligations are paid in full. As used herein, Leverage Ratio shall be defined as the ratio of Total Funded Debt held by the Borrowers on an aggregated basis divided by aggregated Earnings before Interest, Taxes, Depreciation, and Amortization as determined under GAAP. This calculation will be performed by the Borrower in each Compliance Certificate submitted with the annual financial reporting under Section 4.1(g) and shall be verified by the Lender. The Lender shall also test for covenant compliance upon receipt of each request for new store development funding from the Borrower, upon the occurrence of an Event of Default or if the Lender believes, in its sole discretion, that there has been a material adverse change in the Borrower’s financial condition.