Consolidated Debt to Total Capitalization Sample Clauses
The Consolidated Debt to Total Capitalization clause defines the ratio of a company's total consolidated debt to its total capitalization, which typically includes both debt and equity. In practice, this clause sets a maximum allowable ratio, requiring the company to maintain its debt at a level that does not exceed a specified percentage of its total capitalization. For example, it may require that consolidated debt not exceed 60% of total capitalization, calculated on a quarterly or annual basis. The core function of this clause is to limit the company's leverage, thereby protecting lenders or investors by ensuring the company remains financially stable and does not become overburdened with debt.
Consolidated Debt to Total Capitalization. Not permit the ratio of (a) the principal amount of Consolidated Debt to (b) the sum of (i) Net Worth plus (ii) Consolidated Debt to exceed 0.35 to 1.0 at any time.
Consolidated Debt to Total Capitalization. Permit the ratio of Consolidated Debt to Total Capitalization at the end of any fiscal quarter after the Closing Date to be greater than 60%.
Consolidated Debt to Total Capitalization. Not permit the principal amount of Consolidated Debt to exceed forty percent (40%) of the sum of Net Worth plus Consolidated Debt plus warrants of the Borrower subject to redemption as reflected in the balance sheets delivered pursuant to Section 8.1.1(a).