Consolidated Interest and Rent Coverage Ratio Clause Samples

The Consolidated Interest and Rent Coverage Ratio clause defines a financial metric used to assess a company's ability to meet its interest and rent payment obligations from its earnings. Typically, this ratio is calculated by dividing earnings before interest, taxes, depreciation, amortization, and rent (EBITDAR) by the sum of interest and rent expenses. It is often used in loan agreements or bond covenants to ensure that the borrower maintains sufficient cash flow to cover these fixed charges. The core function of this clause is to protect lenders or investors by setting a minimum threshold for financial health, thereby reducing the risk of default.
Consolidated Interest and Rent Coverage Ratio. Permit the Consolidated Interest and Rent Coverage Ratio as of the end of any fiscal quarter of the Company to be less than 2.00 to 1.00.
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Consolidated Interest and Rent Coverage Ratio. Permit the Consolidated Interest and Rent Coverage Ratio for any period of four consecutive fiscal quarters of the Borrower (or, if less, the number of full fiscal quarters subsequent to the Closing Date) ending with any fiscal quarter set forth below to be less than the ratio set forth below opposite such fiscal quarter: April 2, 2005 1.25 to 1.00 July 2, 2005 1.25 to 1.00 October 1, 2005 1.25 to 1.00 December 31, 2005 1.25 to 1.00 April 1, 2006 1.25 to 1.00 July 1, 2006 1.25 to 1.00 September 30, 2006 1.30 to 1.00 December 30, 2006 1.30 to 1.00 March 31, 2007 1.35 to 1.00 June 30, 2007 1.35 to 1.00 September 29, 2007 1.35 to 1.00 December 29, 2007 1.35 to 1.00 March 29, 2008 1.40 to 1.00 June 28, 2008 1.40 to 1.00 September 27, 2008 1.40 to 1.00 January 3, 2009 1.40 to 1.00 April 4, 2009 1.45 to 1.00 July 4, 2009 1.45 to 1.00 October 3, 2009 1.45 to 1.00 January 2, 2010 1.45 to 1.00 April 3, 2010 1.45 to 1.00 July 3, 2010 1.45 to 1.00 October 2, 2010 1.45 to 1.00 January 1, 2011 1.45 to 1.00 April 2, 2011 1.50 to 1.00 July 2, 2011 1.50 to 1.00 October 1, 2011 1.50 to 1.00 December 31, 2011 1.50 to 1.00 ; provided, that for the purposes of determining the ratio described above for the fiscal quarters of the Borrower ending April 2, 2005, July 2, 2005 and October 1, 2005, Consolidated Interest Expense for the relevant period shall be deemed to equal Consolidated Interest Expense for such fiscal quarter (and, in the case of the latter two such determinations, each previous fiscal quarter commencing after the Closing Date) multiplied by 4, 2 and 4/3, respectively.
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Consolidated Interest and Rent Coverage Ratio. Consolidated EBITDAR for the period ending on the Statement Date (see Line I.(g)(xi) above): $____________
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Related to Consolidated Interest and Rent Coverage Ratio

  • Consolidated Interest Coverage Ratio Permit the Consolidated Interest Coverage Ratio as of the end of any fiscal quarter of the Borrower to be less than 3.00 to 1.00.

  • Minimum Consolidated Interest Coverage Ratio Permit the Consolidated Interest Coverage Ratio as of the end of any fiscal quarter of the Borrower to be less than 3.25 to 1.00.

  • Interest Coverage Ratio The Borrower will not permit the Interest Coverage Ratio to be less than 2.75 to 1.0 on the last day of any Fiscal Quarter.

  • Interest Expense Coverage Ratio The Borrower will not permit the ratio of (a) Consolidated EBITDA to (b) Consolidated Interest Expense, in each case for any period of four consecutive fiscal quarters ending after the Effective Date, to be less than 4.0 to 1.0.

  • Minimum Interest Coverage Ratio The Borrowers shall not permit the Interest Coverage Ratio, calculated as of the end of each fiscal quarter for the four fiscal quarters then ended, to be less than 3.50 to 1.00.