DSC Ratio definition

DSC Ratio means the ratio determined as follows: for any fiscal year add (i) total net income from the ▇▇▇▇▇▇▇ Project, or comparable term, of the Borrower, as determined in accordance with GAAP plus Depreciation and Amortization Expense, and interest on Long-Term Debt for such year, divided by (ii) the sum of all scheduled payments of principal required to made during such year and the amount of interest expense related to the period on Long-Term Debt.

Split View

AI-Powered Contracts

Draft, Review & Redline at the Speed of AI

Get StartedSchedule a Demo

DSC Ratio is hereby defined as the debt service coverage ratio which shall be calculated by Lender in the form of a ratio of: (i) EBITDA (as defined in this section); to (ii) Interest Expense plus CMLTD (as defined in this section). “EBITDA” is defined as combined earnings from the continuing operations of Borrower, plus interest expense, taxes, depreciation, and amortization, and shall not include any gains or losses from the sale of assets outside the normal course of business or any other extraordinary accounting adjustments or non‐recurring items of income or loss except as determined by the Lender. “Interest Expense” is defined to mean the combined interest expense of Borrower determined on a consolidated basis for such period in review. “CMLTD” is defined to mean all scheduled principal payments of current maturing long term debt paid during the period in review, excluding prepayments of principal. Any values may be prorated by the Lender at its option. All such calculations and determinations of the DSC Ratio made by the Lender in good faith, absent manifest error, shall be binding for all purposes under this Loan Agreement

DSC Ratio means the ratio of the annual net operating income from the Lease(s) to the annual regularly scheduled installments of debt service on the Note. Only net operating income from approved or acceptable executed Lease(s) in effect on the Premises, with no uncured monetary Event of Default or material non-monetary Event of Default, shall be used in Lender’s determination of the annual net operating income.

Examples of DSC Ratio in a sentence

• Notwithstanding the foregoing, Borrower’s failure to maintain the DSC Ratio shall not constitute an Event of Default if, within 60 days after the reporting period of such failure, Borrower receives cash proceeds from the sale and issuance of its equity and/or Subordinated Debt securities in an amount no less than the shortfall amount that caused Borrower’s failure to maintain the DSC Ratio.

• Commencing on the Closing Date, the Borrower Consolidation shall maintain a minimum Adjusted DSC Ratio no less than 1.0 to 1.0 calculated as of the end of each Fiscal Quarter.

• Prior to the Public Debt Rating Date: Loan Year 1 Current DSC Ratio Applicable Percentage (per annum) ----------------- --------------------------------- 1.

• Minimum DSC Ratio on a Trailing 12 Month Basis: (Income Before Taxes plus Depreciation, Amortization, plus Interest Expense) divided by (All Scheduled Loan Payments).

• The DSC Ratio may be tested by the Lender commencing as of the Lender’s receipt of ▇▇▇▇▇▇▇▇’s Federal US Corporation Income Tax Return Form 1120 proforma for year-end 2023, and annually thereafter for so long as the Loan remains outstanding (notwithstanding anything to the contrary contained herein, the Lender will separately test the DSCR Ratio in connection Borrower’s request for release of the Payment Reserve pursuant to Section 8.02(e)).

More Definitions of DSC Ratio

DSC Ratio means, as of the end of any Rolling Period, a ratio of (a) --------- the Parent's Adjusted EBITDA earned from Permitted Property Agreements entered into with MHC and MHC's Subsidiaries to (b) Parent's Interest Expense, for such Rolling Period.

DSC Ratio is hereby defined as the debt service coverage ratio which shall be calculated by Lender in the form of a ratio of: (i) Net Operating Income (as defined this section) to (ii) Debt Service (as defined in this section) as determined solely but reasonably by the Lender during any review period for so long as the Loan remains outstanding.

DSC Ratio means, with respect to any applicable period of time, the ratio of the annual net operating income from the Lease(s) to the annual regularly scheduled Monthly Payments, as reasonably determined by Lender. Only net operating income from executed Lease(s) in effect on the Premises which (i) are deemed approved (in accordance with Section 8.3 of this Agreement) or acceptable to Lender, or do not require Lender's approval, (ii) have no uncured defaults, and (iii) have not had an event occur which has not otherwise been remedied or waived in a commercially reasonable manner, and which at the time of Lender's determination, with the passage of time or giving of notice or both, would become a default, shall be used in Lender's determination of the annual net operating income.

DSC Ratio shall have the meaning set forth in Schedule B hereof.

DSC Ratio means, as of the end of any Rolling Period, a ratio of (a) the Borrower's and its Subsidiaries' consolidated Adjusted EBITDA to (b) Borrower's and its Subsidiaries' Debt Service, for such Rolling Period.

DSC Ratio shall have the meaning set forth in Section 6.02(b) of this Loan Agreement. [***]

DSC Ratio means the ratio determined as follows: for any fiscal year, as set forth in the Borrower’s annual audited financial statements, add (a) increase (decrease) in net position (i.e. net income or other comparable term) of the Borrower with respect to the Project, as determined in accordance with GAAP plus Depreciation and Amortization Expense, and interest on Long-Term Debt for such year, divided by (b) the sum of all scheduled payments of principal required to made during such year with respect to the Project and the amount of interest expense related to such period on Long-Term Debt.