Leverage Test Interest Coverage Test. A. Interest Coverage Test (for determination of Leverage Ratio): (In thousands) Consolidated EBITDA (based on trailing four quarters): Consolidated Net Income [excl. Non- Guarantor Subsidiaries] $ Changes in GAAP after 12/31/12 $ Plus dividends paid by Non-Guarantor Subsidiaries $ Plus taxes paid by Non-Guarantor Subsidiaries $ Plus Consolidated Interest Expense: Total Interest Expense (per definition) $ less interest expense for Non-Guarantor Subsidiaries $ Equals Consolidated Interest Expense $ Plus federal, state and local taxes $ Plus depreciation expense $ Plus amortization expense $ Plus other non-cash charges and expenses $ Plus losses outside the ordinary course of business $ Less gains outside the ordinary course of business $ Equals Consolidated EBITDA $ (In thousands) Consolidated Interest Incurred (based on trailing four quarters): Interest expense $ Plus capitalized interest $ Plus other items per definition (if applicable) $ Less interest expense for Non-Guarantor Subsidiaries $ Equals: Consolidated Interest Incurred: $ Interest Coverage Ratio: ______ to 1.0 Minimum Interest Coverage Ratio required: Closing through Month 12 after closing: None Beginning from and after December 31, 2014 through and including March 31, 2015: 1.0 to 1.0 Beginning after March 31, 2015: 1.5 to 1.0 If the required minimum Interest Coverage Ratio (the “Interest Coverage Test”) is not achieved for two consecutive fiscal quarters, the Permitted Leverage Ratio for the calculation below shall be decreased as provided in the Credit Agreement.
Leverage Test Interest Coverage Test
