Charge Coverage Ratio Clause Samples
The Charge Coverage Ratio clause defines the minimum ratio of a company's earnings or cash flow to its debt service obligations, such as interest or principal payments. In practice, this clause requires the borrower to maintain a specified level of financial health, often measured by comparing earnings before interest and taxes (EBIT) to interest expenses. For example, a lender may require that the borrower's EBIT is at least twice the amount of its interest payments. The core function of this clause is to ensure the borrower remains financially stable and capable of meeting its debt obligations, thereby reducing the lender's risk of default.
Charge Coverage Ratio. August 31, 2009 2.50 : 1.00 September 30, 2009 2.50 : 1.00 October 31, 2009 2.50 : 1.00 November 30, 2009 2.50 : 1.00 December 31, 2009 2.50 : 1.00 January 31, 2010 2.50 : 1.00 February 28, 2010 2.50 : 1.00 March 31, 2010 2.50 : 1.00 April 30, 2010 2.50 : 1.00 May 31, 2010 2.50 : 1.00 June 30, 2010 2.50 : 1.00 July 31, 2010 2.50 : 1.00 August 31, 2010 2.50 : 1.00
Charge Coverage Ratio. The Company shall not permit, as of the last day of any fiscal quarter, its Fixed Charge Coverage Ratio to be less than 1.50 to 1.00.
Charge Coverage Ratio. When a Cash Dominion Activation Period is in effect, the Borrower will not permit the Fixed Charge Coverage Ratio, as of the end of any fiscal quarter, to be less than 1.00 to 1.00, commencing with the fiscal quarter most recently ended prior to the commencement of such Cash Dominion Activation Period for which financial statements have been delivered in accordance with Section 5.01(b) and for each fiscal quarter thereafter during which the Cash Dominion Activation Period remains in effect.
Charge Coverage Ratio. Permit the Consolidated InterestFixed Charge Coverage Ratio as of the end of (i) the Measurement Period of Holdings ending with the fiscal quarter ending June 30, 2024, to be less than 2.15:1.00, (ii) the Measurement Period of Holdings ending with the fiscal quarter ending September 30, 2024, to be less than 1.80:1.00, (iii) the Measurement Period of Holdings ending with the fiscal quarter ending December 31, 2024, to be less than 1.65:1.00, (iv) the Measurement Period of Holdings ending with the fiscal quarter ending March 31, 2025, to be less than 1.901.10:1.00, (v) the Measurement Period of Holdings ending with the fiscal quarter ending June 30, 2025, to be less than 2.25:1.00, (viii) the Measurement 139 206718545