Amendment to Total Debt Covenant Clause Samples

An Amendment to Total Debt Covenant modifies the terms and conditions that restrict the amount of total debt a borrower can incur under a loan agreement. This clause may adjust the maximum allowable debt level, redefine what constitutes total debt, or alter the calculation methods used to assess compliance. For example, it might exclude certain types of debt from the calculation or increase the permitted debt threshold to accommodate new financing needs. The core function of this amendment is to provide flexibility for the borrower while maintaining lender oversight, ensuring the covenant remains relevant to the borrower's evolving financial situation.