Financial Covenants definition
Examples of Financial Covenants in a sentence
Make or allow any Investment, unless immediately before and after giving effect to such Investment on a Pro Forma Basis, (i) no Default or Event of Default shall have occurred and be continuing or would result therefrom and (ii) the Company and its Subsidiaries are in compliance with the Financial Covenants.
Payment of Obligations 146149 ARTICLE IX NEGATIVE COVENANTS 147149 Section 9.1. Financial Covenants 147149 Section 9.2. Indebtedness 147149 Section 9.3. Liens 148150 Section 9.4. Fundamental Changes 148150 Section 9.5. Restricted Payments 149151 Section 9.6. Transactions with Affiliates 150152 Section 9.7. Amendments to Governing Documents 150152 Section 9.8. No Further Negative Pledges 151153 Section 9.9. Use of Proceeds 151153 Section 9.10.
With respect to any period during which any Permitted Acquisition or any sale, transfer or other Disposition of any material assets outside the ordinary course of business occurs, or any operational change or operational initiative is commenced, for purposes of determining compliance with the Financial Covenants or otherwise for purposes of determining the Total Leverage Ratio, EBITDA and Interest Expense, calculations with respect to such period shall be made on a Pro Forma Basis.
Create, issue, incur, assume, become liable in respect of or suffer to exist any Indebtedness (including any Capital Lease Obligations, securitizations and similar Indebtedness), unless (a) no Default or Event of Default shall have occurred and is continuing or would result therefrom and (b) after giving effect to the incurrence of such Indebtedness on a Pro Forma Basis the Company and its Subsidiaries are in compliance with the Financial Covenants.