Covenant Triggering Event definition

Covenant Triggering Event shall occur at any time that (i) an Event of Default has occurred and is continuing or (ii) Availability is less than 15.0% of the Revolving Facility Commitment.

Covenant Triggering Event shall occur at any time that Excess Availability is less than the greater of (a) 10.0% of the Line Cap at such time or (b) $30.0 million. Once occurred, a Covenant Triggering Event shall be deemed to be continuing until such time as Excess Availability is greater than the greater of (i) 10.0% of the Line Cap at such time or (ii) $30.0 million for thirty (30) consecutive days.

Covenant Triggering Event has the meaning set forth in Section 6.07.

Examples of Covenant Triggering Event in a sentence

• The Company will not permit its Consolidated Fixed Charge Coverage Ratio for any Test Period to be lower than 1.00 to 1.00; provided that such Consolidated Fixed Charge Coverage Ratio will only be tested as of the last day of the Test Period ending immediately prior to the date on which a Financial Covenant Triggering Event shall have occurred and shall continue to be tested as of the last day of each Test Period thereafter until such Financial Covenant Triggering Event is no longer continuing.

• For purposes of this Section 6.10, when calculating Excess Availability under the definition of Covenant Triggering Event, Excess Availability for a non-Business Day shall be Excess Availability as of the immediately preceding Business Day.

• Guarantor shall not, at any time following the occurrence of a Modified Covenant Triggering Event, permit its Total Leverage Ratio to be greater than 5.00 to 1.00.

• After the occurrence of a Covenant Triggering Event, the Consolidated First Lien Net Leverage Ratio shall continue to be tested on the last day of each fiscal quarter until the Total Revolving Credit Outstandings (calculated in the same manner as the prior sentence) is equal to or less than 35.0% of the amount of the Revolving Credit Commitments (the “Testing Threshold”), in which case, such Covenant Triggering Event shall no longer be deemed to be continuing for purposes of this Agreement.

• If, at the close of business on any day, a Covenant Triggering Event shall exist, the Borrower and the other Subsidiaries of Holdings must maintain a Fixed Charge Coverage Ratio (commencing with the 12-month period then most recently ended for which the certificate described in Section 5.04(d) has been (or was required to be) delivered) of not less than 1.0 to 1.0 (which calculation shall be made on a Pro Forma Basis) until such time as no Covenant Triggering Event shall exist.

More Definitions of Covenant Triggering Event

Covenant Triggering Event as defined in Section 8.1.

Covenant Triggering Event means if at any time: (i) Excess Availability for three (3) consecutive business days is less than the greater of (a) 12.5% of the Gross Borrowing Base or (b) Seventeen Million Five Hundred Thousand Dollars ($17,500,000.00), or (ii) a Default has occurred and is continuing under Section 6 of the Agreement.”

Covenant Triggering Event shall occur at any time that Excess Availability is less than the greater of (a) 10% of the lesser of (i) the Borrowing Base at such time and (ii) the aggregate amount of Revolving Facility Commitments at such time or (b) $10.0 million. Once occurred, a Covenant Triggering Event shall be deemed to be continuing until such time as Excess Availability is greater than the greater of (i) 10% of the lesser of (A) the Borrowing Base at such time and (B) the aggregate amount of Revolving Facility Commitments at such time, or (ii) $10.0 million for ten (10) consecutive days.

Covenant Triggering Event means the occurrence of any of the following: (a) an Event of Default or (b) Availability, as set forth on two consecutive Borrowing Base Certificates, is less than the greater of (i) $3,500,000 and (ii) fifteen percent (15%) of the lesser of (x) the Maximum Revolver Amount and (y) the Borrowing Base calculated as if Reserves were $0.

Covenant Triggering Event means the failure of the Permitted Owners (as defined in the Corporate Governance Agreement) to consent to a transaction contemplated by Section 3.1(i) or 3.1(j) of the Corporate Governance Agreement.

Covenant Triggering Event means if at any time: (i) Excess Availability for three (3) consecutive business days is less than the greater of (a) 12.5% of the Gross Borrowing Base (as defined in the BFA) or (b) Seventeen Million Five Hundred Thousand Dollars ($17,500,000.00), or (ii) a default under Section 13 of the Agreement has occurred and is continuing. The “Fixed Charge Coverage Ratio” means for any period of calculation, the ratio of (A) EBITDA minus the sum of (1) taxes on or measured by income paid or payable in cash, plus (2) unfinanced capital expenditures, to (B) the sum of (1) interest expense paid or payable in cash, plus (2) actual payments of principal on Debt (as defined below) (excluding payments of principal with respect to this Agreement or the BFA) plus (3) distributions paid in cash to the equity holders of Dealer.

Covenant Triggering Event means any time that Excess Availability is less than the greater of (a) 12.5% of the Maximum Borrowing Amount and (b) $7,500,000.