Maximum First Lien Net Leverage Ratio Sample Clauses
The Maximum First Lien Net Leverage Ratio clause sets a limit on the amount of debt secured by a first lien that a borrower can have relative to its net earnings, typically measured by EBITDA. In practice, this clause requires the borrower to maintain its first lien net leverage below a specified ratio, which is periodically tested, often quarterly, based on financial statements. This provision helps lenders manage credit risk by ensuring the borrower does not become over-leveraged with secured debt, thereby protecting the lender’s position and maintaining the financial health of the borrower.
Maximum First Lien Net Leverage Ratio. The Borrower will not permit the First Lien Net Leverage Ratio, determined as of the last day of any fiscal quarter of the Borrower ended after the Effective Date to be greater than 1.75 to 1.00.
Maximum First Lien Net Leverage Ratio. Without the prior written consent of the Required Revolving Lenders, permit the First Lien Net Leverage Ratio (calculated on a Pro Forma Basis), as of the last day of any fiscal quarter (but only if, on the last day of such fiscal quarter, the Total Revolving Credit Outstandings (exclusive of (x) all Cash Collateralized L/C Obligations and (y) the aggregate amount available to be drawn under all Letters of Credit that have not been Cash Collateralized in an amount not exceeding $2,500,000) is in excess of the Covenant Trigger Amount), to be greater than 6.60:1.00.
Maximum First Lien Net Leverage Ratio. The First Lien Net Leverage Ratio, as of the last day of each Test Period set forth below, to be greater than the First Lien Net Leverage Ratio set forth below opposite such Test Period:
Maximum First Lien Net Leverage Ratio. Permit the First Lien Net Leverage Ratio as of the last day of any Test Period, commencing with the Test Period ending September 30, 2017 to be greater than 4.00:1.00. Notwithstanding the foregoing, at the election of the Borrower, up to three times during the term of this Agreement, the First Lien Net Leverage Ratio set forth above may be increased to accommodate a Qualifying Material Acquisition, as determined by the Borrower and as designated in the Compliance Certificate or earlier notice given by the Borrower in connection with such Qualifying Material Acquisition; provided, however, (i) such increase will not go into effect until the closing of such Permitted Acquisition and, at the Borrower’s election, such increase shall apply either (x) for the fiscal quarter in which such Qualifying Material Acquisition is consummated and the three full fiscal quarters immediately following the consummation thereof or (y) for the four fiscal quarters immediately following the fiscal quarter in which such Qualifying Material Acquisition is consummated, and immediately upon the expiration of the applicable time period referenced in clause (x) or (y) above, the required First Lien Net Leverage Ratio shall revert to 4.00 to 1.00 for the measurement period in which such step-down occurs; and (ii) in no event shall the First Lien Net Leverage Ratio after giving effect to any such step-up exceed 4.50 to 1.00.
Maximum First Lien Net Leverage Ratio. (i) for so long as there are any Non-Extended Revolving Credit Commitments then in effect or any Non-Extended Revolving Credit Loans then outstanding, commencing with the first fiscal quarter ending after the Covenant Amendment Period, permit the First Lien Net Leverage Ratio (calculated on a Pro Forma Basis), as of the last day of any such fiscal quarter (but only if, on the last day of such fiscal quarter, the Total Revolving Credit Outstandings (excluding (x) L/C Obligations that have been Cash Collateralized and (y) L/C Obligations that have not been Cash Collateralized in an amount not to exceed $5,000,000) is in excess of 35% of the aggregate Commitments then in effect under the Revolving Credit Facilities on such day), to be greater than 6.20:1.00; or
(ii) permit the First Lien Net Leverage Ratio (calculated on a Pro Forma Basis), as of the last day of any fiscal quarter (but only if, on the last day of such fiscal quarter, the Total Revolving Credit Outstandings (excluding (x) L/C Obligations that have been Cash Collateralized and (y) L/C Obligations that have not been Cash Collateralized in an amount not to exceed $5,000,000) is in excess of 25% of the aggregate Commitments then in effect under the Revolving Credit Facilities on such day), to be greater than 6.20:1.00;
Maximum First Lien Net Leverage Ratio. Permit the First Lien Net Leverage Ratio as of the last day of any fiscal quarter ending during a period set forth below to be greater than the ratio set forth opposite such period below: Period Ratio October 1, 2017 through June 30, 2018 5.25 to 1.00 July 1, 2018 through December 31, 2018 5.00 to 1.00 January 1, 2019 through December 31, 2019 4.75 to 1.00 January 1, 2020 through June 30, 2020 4.50 to 1.00 Thereafter 4.25 to 1.00 For the purposes of this Section 6.13, the following terms shall have the meanings specified:
Maximum First Lien Net Leverage Ratio. Permit the First Lien Net Leverage Ratio as of the last day of any fiscal quarter ending during a period set forth below to be greater than the ratio set forth opposite such period below: Period Ratio October 1, 2017 through June 30, 2018 5.25 to 1.00 July 1, 2018 through December 31, 2018 5.00 to 1.00 January 1, 2019 through December 31, 2019 4.75 to 1.00 January 1, 2020 through June 30, 2020 4.50 to 1.00 Thereafter 4.25 to 1.00 The provisions of this Section 6.13 are solely for the benefit of the Revolving Credit Lenders and any Lenders having Other Term A Loans and, notwithstanding the provisions of Section 9.08, the Required Covenant Lenders may (i) amend or otherwise modify Section 6.13 or, solely for the purposes of Section 6.13, the defined terms used, directly or indirectly, therein, or (ii) waive any non-compliance with Section 6.13 or any Event of Default resulting from such non-compliance, in each case without the consent of any other Lenders.