Senior Debt to Trailing EBITDA Ratio Clause Samples
The Senior Debt to Trailing EBITDA Ratio clause sets a financial covenant that limits the amount of senior debt a borrower can have relative to its trailing earnings before interest, taxes, depreciation, and amortization (EBITDA). Typically, this ratio is calculated by dividing the total outstanding senior debt by the borrower's EBITDA over the most recent twelve-month period, and the result must not exceed a specified threshold. This clause is used to ensure that the borrower maintains a manageable level of debt compared to its earnings, thereby protecting lenders by reducing the risk of default due to excessive leverage.
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Senior Debt to Trailing EBITDA Ratio. The Borrower, shall maintain as of the end of each fiscal quarter of the Borrower, for the fiscal quarters ending May 31, 2006, August 31, 2006 and November 30, 2006, on an annualized year-to-date basis, and thereafter on a rolling four quarter basis, a ratio of (i) Senior Debt to (ii) trailing twelve-month Earnings Before Interest, Taxes, Depreciation and Amortization of not more than as set forth in the following table: E. Section 7.7 of the Loan Agreement is hereby deleted and replaced with the following:
Senior Debt to Trailing EBITDA Ratio. The Borrower shall maintain a ratio of (i) senior bank debt to (ii) trailing earnings before interest, taxes, depreciation and amortization of not more than 3.0 : 1.0 on a rolling four quarter basis as of the end of each fiscal quarter of the Borrower."
15. Exhibit B to the Loan Agreement is hereby deleted in its entirety and in lieu thereof a new Exhibit B is inserted in the form attached hereto as Exhibit B.
16. The effectiveness of this First Amendatory Agreement shall be conditional upon:
a. The execution and delivery by Borrower to Lender of an Amended and Restated Revolving Promissory Note in the form of Exhibit B attached hereto: and
b. The execution and delivery of this First Amendatory Agreement by Borrower and Lender.
17. All other terms and conditions of the Loan Agreement are hereby ratified, continued and confirmed and nothing contained herein shall operate to release the Borrower from its liability to pay the Obligations and to keep and perform the terms, conditions, obligations and agreements contained in all documents relating to and securing repayment of the Loan Agreement, except as herein modified, and the Borrower agrees to pay the indebtedness evidenced and secured by the Loan Agreement with interest and all other payments required to be made by the Loan Agreement in accordance with the provisions thereof, except as herein modified, and the Borrower further agrees that every provision, obligation, right and power contained in and under the Loan Agreement and said related documents shall continue in full force and effect affected only to the extent of the changes herein set forth.
18. The Borrower hereby acknowledges and agrees that it is indebted to the Lender as set forth in the Loan Agreement as modified hereby and that the Borrower has no defense, offset, recoupment or counterclaim with respect thereto all of which are hereby waived. The Borrower hereby releases the Lender from any and all liability arising directly or indirectly with respect to the Loan Agreement, the debt evidenced or governed thereby and any and all actions taken by the Lender with respect to the transactions contemplated therein.
19. All capitalized terms not otherwise defined herein shall have the meaning ascribed to them in the Loan Agreement.
20. This Agreement may be executed in one or more counterparts, each of which shall be deemed to be an original and all of them shall constitute one and the same agreement.
21. This Agreement shall be governed by the int...
Senior Debt to Trailing EBITDA Ratio. The Borrower shall maintain as of the end of each fiscal quarter of the Borrower, on a rolling four quarter basis, a ratio of (i) Senior Debt to (ii) trailing twelve-month Earnings Before Interest, Taxes, Depreciation and Amortization of not more than as set forth in the following table: 2/28/07 5,25:1.0 5/31/07 5.00:1.0 8/31/07 4.75:1.0 11/30/07 4.50:1.0 2/28/08 - Maturity 4.00:1.0
C. Section 7.7 of the Loan Agreement is hereby deleted and replaced with the following:
Senior Debt to Trailing EBITDA Ratio. The Borrower shall maintain on a rolling four quarter basis as of the end of each fiscal quarter of the Borrower a ratio of (i) senior bank debt to (ii) trailing twelve-month Earnings Before Interest, Taxes, Depreciation and Amortization of not more than (i) 4.0:1.0 during the period from the date which is one (1) day following the first anniversary of the date hereof through the second anniversary of the date hereof, (2) 3.5:1.0 during the period from the date which is one (1) day following such second anniversary date through the third anniversary of the date hereof, and (3) 3.0:1.0 at all times following the third anniversary date.
Senior Debt to Trailing EBITDA Ratio. The Borrower shall maintain on a rolling four quarter basis as of the end of each fiscal quarter of the Borrower a ratio of (i) Senior Debt to (ii) trailing twelve-month Earnings Before Interest, Taxes, Depreciation and Amortization of not more than (a) prior to the Drawdown Date of the 2003 Term Loan, 3.0:1.0 and (b) thereafter as set forth in the following table: Fiscal Quarter Ending Ratio Not More Than 5/31/03 - 2/29/04 3.0:1.0 5/31/04 2/28/05 2.75:1.0 5/31/05 - 2/28/06 2.65:1.0
Senior Debt to Trailing EBITDA Ratio. The Borrower shall maintain as of the end of each fiscal quarter of the Borrower, on a rolling four quarter basis, a ratio of (i) Senior Debt to (ii) trailing twelve-month Earnings Before Interest, Taxes, Depreciation and Amortization of not more than 4.00:1.00.