Consolidated Total Net Leverage Ratio Clause Samples
The Consolidated Total Net Leverage Ratio clause defines the calculation and use of a financial metric that measures a company's total debt relative to its earnings, typically adjusted for cash and cash equivalents. This ratio is often determined by dividing the sum of all outstanding debt, minus cash on hand, by a specified earnings figure such as EBITDA. It is commonly used in loan agreements or bond covenants to set limits on how much debt a company can carry, ensuring that the borrower maintains a manageable level of leverage. The core function of this clause is to help lenders monitor and control the borrower’s financial risk by preventing excessive indebtedness.
Consolidated Total Net Leverage Ratio. The Borrower will not permit, as of the last day of any fiscal quarter, commencing with the fiscal quarter ending March 31, 2025, the Consolidated Total Net Leverage Ratio to exceed 2.50 to 1.00.
Consolidated Total Net Leverage Ratio. Permit the Consolidated Total Net Leverage Ratio as at the last day of any Reference Period of the Borrower to exceed 6.90 to 1.00.
Consolidated Total Net Leverage Ratio. Permit the Consolidated Total Net Leverage Ratio on the last day of any fiscal quarter occurring during any period set forth below, to be greater than the ratio set forth below opposite such period: Closing Date through and including September 30, 2014 7.25:1.00 December 31, 2014 through and including September 30, 2015 6.75:1.00 December 31, 2015 and thereafter 6.50:1.00
Consolidated Total Net Leverage Ratio. Commencing with the last day of the first full fiscal quarter of New Holdings following the Amendment No.1 Effective Date, permit the Consolidated Total Net Leverage Ratio on the last day of any fiscal quarter occurring during any period set forth below, to be greater than the ratio set forth below opposite such period: Initial Draw Date through and including March 31, 2015 6.00:1.00 June 30, 2015 through and including September 30, 2015 5.75:1.00 December 31, 2015 5.50:1.00 March 31, 2016 5.25:1.00 June 30, 2016 and thereafter 5.00:1.00
Consolidated Total Net Leverage Ratio. Permit the Consolidated Total Net Leverage Ratio of the Consolidated Companies as of the end of any fiscal quarter ending on or after March 31, 2016, with respect to the four fiscal quarters ending on such date, to be greater than the ratio set forth below opposite such period: March 31, 2016 4.75 to 1.00 June 30, 2016 4.75 to 1.00 September 30, 2016 4.75 to 1.00 December 31, 2016 4.00 to 1.00 March 31, 2017 4.00 to 1.00 June 30, 2017 4.00 to 1.00 September 30, 2017 4.00 to 1.00 December 31, 2017 3.00 to 1.00 March 31, 2018 3.00 to 1.00 June 30, 2018 3.00 to 1.00 September 30, 2018 3.00 to 1.00 December 31, 2018 2.50 to 1.00 March 31, 2019 2.50 to 1.00 June 30, 2019 2.50 to 1.00 September 30, 2019 2.50 to 1.00 December 31, 2019, and the last day of each fiscal quarter thereafter 2.00 to 1.00
Consolidated Total Net Leverage Ratio. The Borrower will not permit the Consolidated Total Net Leverage Ratio (a) as of the last day of any Test Period ending on or prior to March 31, 2021 to be greater than 4.00:1.00, or (b) as of the last day of any Test Period ending thereafter to be greater than 3.50:1.00.
Consolidated Total Net Leverage Ratio. Except with the consent of the Required Pro Rata Facilities Lenders, permit the Consolidated Total Net Leverage Ratio as of the end of any fiscal quarter of the Borrower to be greater than the applicable level set forth below opposite such fiscal quarter under the heading “Consolidated Total Net Leverage Ratio”:
Consolidated Total Net Leverage Ratio. The Borrower will maintain, as of the end of each Fiscal Quarter, commencing with the Fiscal Quarter ending on June 30, 2021, a Consolidated Total Net Leverage Ratio of not greater than 3.75:1.00; provided that for any Fiscal Quarter during which a Loan Party has consummated a Permitted Acquisition or Future Approved Entity Investment permitted hereunder in which the Investment Consideration payable in connection with such Permitted Acquisition or Future Approved Entity Investment was greater than $75,000,000 (a “Trigger Quarter”), the Consolidated Total Net Leverage Ratio for such Trigger Quarter and the next succeeding three Fiscal Quarters shall be increased by 0.25:1.00 to 4.00:1.00 (a “Covenant Holiday”). For the avoidance of doubt, the Consolidated Total Net Leverage Ratio shall revert to 3.75:1.00 commencing with the fourth Fiscal Quarter ending after any such initial Trigger Quarter. After the completion of any Covenant Holiday, no subsequent new Trigger Quarter shall be permitted to occur for purposes of this Section 6.1 unless and until the Borrower shall demonstrate compliance with the Consolidated Total Net Leverage Ratio (absent any Covenant Holiday) as of the end of at least one Fiscal Quarter after any such Covenant Holiday’s completion.
Consolidated Total Net Leverage Ratio. Permit the Consolidated Total Net Leverage Ratio as of the last day of each fiscal quarter of Holdings ending during the periods specified below to be greater than:
Consolidated Total Net Leverage Ratio. Permit the Consolidated Total Net Leverage Ratio as of the end of each Fiscal Quarter, commencing with the Fiscal Quarter ending March 31, 2020, to be greater than 3.50 to 1.00; provided, that, upon the occurrence of a Qualified Acquisition, for the four (4) Fiscal Quarters next ending, commencing with the Fiscal Quarter during which such Qualified Acquisition closes (each such period, a “Leverage Increase Period”), the required Consolidated Total Net Leverage Ratio set forth above may, upon receipt by the Administrative Agent of a Qualified Acquisition Notice, be increased to 4.00:1.00; provided, further, that (i) the maximum Consolidated Total Net Leverage Ratio permitted pursuant to this Section 6.1 shall revert to 3.50:1.00 following the end of each Leverage Increase Period, (ii) for at least one (1) full Fiscal Quarter ending immediately following the end of each Leverage Increase Period, the Consolidated Total Net Leverage Ratio as of the end of each such Fiscal Quarter shall not be permitted to be greater than 3:50:1.00 prior to giving effect to another Leverage Increase Period and (iii) the Leverage Increase Period shall apply only for purposes of determining compliance with this Section 6.1, for purposes of any Qualified Acquisition Pro Forma Determination and for purposes of determining compliance on a Pro Forma Basis in connection with the incurrence of Indebtedness under Section 7.1.