Adjusted Total Debt to Adjusted EBITDA Ratio Clause Samples
The Adjusted Total Debt to Adjusted EBITDA Ratio clause defines a financial covenant that measures a borrower's leverage by comparing its total adjusted debt to its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA). In practice, this clause sets a maximum allowable ratio, requiring the borrower to maintain its debt at a level that does not exceed a specified multiple of its adjusted EBITDA, with adjustments often made to exclude certain non-recurring items or to account for specific types of debt. This clause serves to limit the borrower's indebtedness relative to its operating cash flow, thereby protecting lenders by ensuring the borrower remains financially stable and capable of meeting its debt obligations.
Adjusted Total Debt to Adjusted EBITDA Ratio. Permit or suffer the Adjusted Total Debt to Adjusted EBITDA Ratio to be greater than (i) 6.95 to 1.0 at any time from and including the Effective Date to and including September 29, 1999, (ii) 6.75 to 1.0 at any time from and including September 30, 1999 to and including Dece▇▇▇▇ ▇▇, ▇▇▇▇, (▇▇▇) ▇.▇ to 1.0 at any time from and including January 1, 2000 to and including September 30, 2000, (iv) 6.50 to 1.0 at any time from and including October 1, 2000 to and including Marc▇ ▇▇, ▇▇▇▇, (▇) ▇.▇5 to 1.00 at any time from and including March 31, 2001 to and including June 29, 2001, (vi) 6.20 to 1.00 at any time from and including June 30, 2001 to and including September 29, 2001, (vii) 6.00 to 1.00 at any time from and including September 30, 2001 to and including December 30, 2001, (viii) 5.80 to 1.00 at any time from and including December 31, 2001 to and including March 30, 2002 or (ix) 5.50 to 1.0 at any time thereafter.
Adjusted Total Debt to Adjusted EBITDA Ratio. Permit or suffer the Adjusted Total Debt to Adjusted EBITDA Ratio to be greater than the levels set forth in the following table as of the dates shown: March 31, 2002 5.89 to 1.00 June 30, 2002 6.57 to 1.00 September 30, 2002 6.60 to 1.00 December 31, 2002 7.29 to 1.00 March 31, 2003 7.22 to 1.00 June 30, 2003 6.89 to 1.00 September 30, 2003 6.53 to 1.00 December 31, 2003 6.53 to 1.00 As of December 31, 2001, the Company shall have a minimum Adjusted EBITDA of $26,200,000.
Adjusted Total Debt to Adjusted EBITDA Ratio. (i) Permit or suffer the Adjusted Total Debt to Adjusted EBITDA Ratio to be greater than the levels set forth in the following table as of the dates shown: September 30, 2003 6.88 to 1.00 December 31, 2003 6.73 to 1.00 March 31, 2004 6.73 to 1.00 June 30, 2004 6.73 to 1.00 September 30, 2004 6.73 to 1.00 December 31, 2004 6.27 to 1.00 March 31, 2005 6.27 to 1.00 June 30, 2005 6.27 to 1.00 September 30, 2005 6.27 to 1.00 December 31, 2005 5.71 to 1.00 March 31, 2006 5.71 to 1.00 June 30, 2006 5.71 to 1.00
(ii) Permit or suffer the Adjusted Total Debt to Adjusted EBITDA Ratio to be greater than the levels set forth in the following table as of the dates shown: September 30, 2003 7.50 to 1.00 December 31, 2003 7.34 to 1.00 March 31, 2004 7.34 to 1.00 June 30, 2004 7.34 to 1.00 September 30, 2004 7.34 to 1.00 December 31, 2004 6.84 to 1.00 March 31, 2005 6.84 to 1.00 June 30, 2005 6.84 to 1.00 September 30, 2005 6.84 to 1.00 December 31, 2005 6.23 to 1.00 March 31, 2006 6.23 to 1.00 June 30, 2006 6.23 to 1.00
Adjusted Total Debt to Adjusted EBITDA Ratio. Permit or suffer the Adjusted Total Debt to Adjusted EBITDA Ratio to be greater than (i) 6.95 to 1.0 at any time from and including the Effective Date to and including June 29, 1999, (ii) 6.50 to 1.0 at any time from and including June 30, 1999 to and including June 29, 2000 or (iii) 6.00 to 1.0 at any time from and including June 30, 2000 to and including June 29, 2001, or (iv) 5.50 to 1.0 at any time thereafter.