Maximum Net Leverage Ratio. (a) The Company will not permit the ratio (the “Net Leverage Ratio”), determined as of the end of each of its fiscal quarters ending on and after September 30, 2023, of (i) Consolidated Debt minus Qualified Cash, in each case as of the last day of the applicable fiscal quarter (it being understood that such difference shall not be less than zero) to (ii) Consolidated EBITDA for the period of four (4) fiscal quarters then ended, all calculated for the Company and its Subsidiaries on a consolidated basis, to be greater than the following ratios set forth below for the applicable fiscal quarter: Quarter Ending Net Leverage Ratio September 30, 2023 4.00 to 1.00 December 31, 2023 4.00 to 1.00 March 31, 2024 4.00 to 1.00 June 30, 2024 4.00 to 1.00 September 30, 2024 3.75 to 1.00 December 31, 2024 3.75 to 1.00 March 31, 2025 and each fiscal quarter ending thereafter 3.50 to 1.00 provided, that after the fiscal quarter ending June 30, 2024, the Company may, not more than two (2) times during the term of this Agreement, elect (an “Acquisition Holiday Election”) to increase the maximum Net Leverage Ratio permitted under this Section 10.2 to 4.00 to 1.00 for a period of four (4) consecutive fiscal quarters in connection with, and commencing with the first fiscal quarter ending after, an Acquisition (the “Acquisition Holiday Election Quarter”) if, the aggregate consideration paid or to be paid in respect of such Acquisition equals or exceeds $75,000,000 (it being understood that the Net Leverage Ratio shall return to less than or equal to 3.50 to 1.00 no later than the fifth fiscal quarter following the Acquisition Holiday Election Quarter) and the Company pays the additional fees required by Section 10.2(b).
Appears in 5 contracts
Samples: Note Purchase and Private Shelf Agreement (Stepan Co), Note Purchase Agreement (Stepan Co), Note Purchase Agreement (Stepan Co)