Common use of Limitation on Incurrence of Additional Indebtedness and Issuance of Preferred Stock Clause in Contracts

Limitation on Incurrence of Additional Indebtedness and Issuance of Preferred Stock. The Company shall not, and shall not permit any of its Restricted Subsidiaries to, directly or indirectly, incur any Indebtedness (including Acquired Debt), and the Company shall not permit any of its Restricted Subsidiaries to issue any preferred stock; provided, however, that the Company and any Subsidiary Guarantor may incur Indebtedness (including Acquired Debt), if the Fixed Charge Coverage Ratio for the Company’s most recently ended four full fiscal quarters for which internal financial statements are available immediately preceding the date on which such additional Indebtedness is incurred would have been at least 2.25 to 1, determined on a pro forma basis (including a pro forma application of the net proceeds therefrom), as if the additional Indebtedness had been incurred at the beginning of such four-quarter period. The first paragraph of this Section 4.09 shall not prohibit the incurrence of any of the following items of Indebtedness (collectively, “Permitted Debt”):

Appears in 3 contracts

Samples: Indenture (Landrys Restaurants Inc), Indenture (Landrys Restaurants Inc), Indenture (Landrys Restaurants Inc)

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Limitation on Incurrence of Additional Indebtedness and Issuance of Preferred Stock. The Company shall not, and shall not permit any of its Restricted Subsidiaries to, directly or indirectly, incur any Indebtedness (including Acquired Debt), and the Company shall not permit any of its Restricted Subsidiaries to issue any preferred stock; provided, however, that the Company and or any Subsidiary Guarantor may incur Indebtedness (including Acquired Debt)Indebtedness, if the Fixed Charge Coverage Ratio for the Company’s 's most recently ended four full fiscal quarters for which internal financial statements are available immediately preceding the date on which such additional Indebtedness is incurred would have been at least 2.25 2.00 to 1, determined on a pro forma basis (including a pro forma application of the net proceeds therefrom), as if the additional Indebtedness had been incurred at the beginning of such four-quarter period. The So long as no Default shall have occurred and be continuing or would be caused thereby, the first paragraph of this Section 4.09 shall covenant will not prohibit the incurrence of any of the following items of Indebtedness (collectively, "Permitted Debt"):

Appears in 1 contract

Samples: Esterline Technologies Corp

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