Maximum Funded Debt/EBITDA Sample Clauses
Maximum Funded Debt/EBITDA. (1) The BORROWERS on a combined basis will not permit the ratio of Funded Debt to EBITDA to exceed the following: Period Ratio ------ ----- from closing to 12/30/1998: 4.20 to 1.0 12/31/1998 to 06/29/1999: 3.75 to 1.0 06/30/1999 and thereafter: 3.00 to 1.0
(i) For purposes of the foregoing, Funded Debt shall mean all of the BORROWERS' obligations for borrowed money for the four quarters being measured.
(ii) Also for purposes of the foregoing, EBITDA shall mean all of the BORROWERS' net income (before restructuring charges) plus letter of credit fees plus interest plus taxes plus depreciation plus amortization, all the foregoing to be based on the four quarters being measured.
(3) This covenant will be tested, in accordance with GAAP, annually and quarterly based on the financial statements required to be submitted by the BORROWERS to BANK. END OF ARTICLE VII
Maximum Funded Debt/EBITDA. From the Closing Date through the Scheduled Maturity Date, maintain a ratio of (a) Funded Debt, as measured at the end of each of the Borrowers’ fiscal quarters, to (b) EBITDA, as measured at the end of each of the Borrowers’ fiscal quarters on a trailing four-quarter basis, of no more than 2.50:1:00.
Maximum Funded Debt/EBITDA. Maintain a ratio of (a) Funded Debt, as measured at the end of each of the Borrowers’ fiscal quarters, to (b) EBITDA, as measured at the end of each of the Borrowers’ fiscal quarters on a trailing four-quarter basis, of no more than 2.50:1:00.
(k) Effective as of the effective date of this Agreement, Section 10.7 of the Credit Agreement is hereby deleted, and the following is inserted in lieu thereof:
Maximum Funded Debt/EBITDA. From the Closing Date through the Scheduled Maturity Date, maintain a ratio of (a) Funded Debt, as measured at the end of each of the Borrowers’ fiscal quarters, to (b) EBITDA, as measured at the end of each of the Borrowers’ fiscal quarters on a trailing four-quarter basis, of no more than 3.00:1:00; provided, however, if TESSCO (or any affiliate) purchases a new headquarters building (the “HQ Purchase Transaction”), this Section 9.4 shall cease to be applicable and Section 9.5 shall become applicable. The date on which TESSCO consummates the purchase of a new headquarters building is referred to in herein as the “HQ Purchase Date”.