Examples of Lease Coverage Ratio in a sentence
Within thirty (30) days after the end of each quarter, Tenant shall provide to Landlord internally generated financial statements, which statements shall include a calculation of the Lease Coverage Ratio.
Appropriate adjustments and assumptions are documented to reflect the applicant’s expected repayment ability.The cash flow projection is used to calculate the loan applicant’s Term Debt/Capital Lease Coverage Ratio as the primary basis to determine the strength of repayment capacity.
Repayment capacity measures and standards are outlined below:Repayment Capacity: Term Debt/Capital Lease Coverage Ratio (TDCLCR) below 1.25:1.00 is considered weak and must have offsetting strengths in other credit factors.
Sublessee shall be required to comply with the following financial covenant: Maintaining a Lease Coverage Ratio of 1.0 to 1.0 for months 9 through 18 of the Initial Term, 1.15 to 1.0 for months 19 through 36 of the Initial Term and 1.25 to 1.0 thereafter.
After month 24 of the Initial Term, Sublessee must satisfy the Lease Coverage Ratio for a trailing twelve-month testing period tested quarterly beginning with the first full fiscal quarter ended of Sublessee after month 24 of the Initial Term.