Common use of Section 407. Limitation on Indebtedness Clause in Contracts

Section 407. Limitation on Indebtedness. The Company will not, and will not permit any Restricted Subsidiary to, Incur any Indebtedness; provided, however, that the Company or any Restricted Subsidiary may Incur Indebtedness if on the date of the Incurrence of such Indebtedness, after giving effect to the Incurrence thereof, the Consolidated Coverage Ratio would be equal to or greater than 2.00:1.00; provided, further, that the Indebtedness that may be Incurred pursuant to this Section 407(a) by Restricted Subsidiaries that are not Subsidiary Guarantors shall not exceed an amount equal to the greater of $100.0 million and 25.0% of Consolidated Tangible Assets at any time outstanding.

Appears in 2 contracts

Samples: Indenture (Frontdoor, Inc.), Indenture (Servicemaster Global Holdings Inc)

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Section 407. Limitation on Indebtedness. The Company will not, and will not permit any Restricted Subsidiary to, Incur any Indebtedness; provided, however, that the Company or any Restricted Subsidiary may Incur Indebtedness if on the date of the Incurrence of such Indebtedness, after giving effect to the Incurrence thereof, the Consolidated Coverage Ratio would be equal to or greater than 2.00:1.00; provided2.00 to 1.00, further, provided further that the aggregate principal amount of Indebtedness that may be Incurred pursuant to this Section 407(a) the foregoing by Restricted Subsidiaries that are not Subsidiary Guarantors shall not exceed an amount equal to the greater of $100.0 150.0 million and 25.0% of Consolidated Tangible Assets at any one time outstanding.

Appears in 1 contract

Samples: Indenture (Hd Supply, Inc.)

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Section 407. Limitation on Indebtedness. The Company will not, and will not permit any Restricted Subsidiary to, Incur any Indebtedness; provided, however, that the Company or any Restricted Subsidiary may Incur Indebtedness if on the date of the Incurrence of such Indebtedness, after giving effect to the Incurrence thereof, the Consolidated Coverage Ratio would be equal to or greater than 2.00:1.00; provided2.00 to 1.00, further, provided further that the aggregate principal amount of Indebtedness that may be Incurred pursuant to this Section 407(a) the foregoing by Restricted Subsidiaries that are not Subsidiary Guarantors shall not exceed an amount equal to the greater of $100.0 300.0 million and 25.0% of Consolidated Tangible Assets at any one time outstanding.

Appears in 1 contract

Samples: Indenture (HSI IP, Inc.)

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