Common use of Debt to Adjusted EBITDA Clause in Contracts

Debt to Adjusted EBITDA. (a) The total outstanding amount of Debt (excluding Permitted Risk Retention Debt) of Borrower and its Subsidiaries on a Stand Alone Basis as of the last day of the four fiscal quarter period of the Borrower ending ___________, ___ is equal to $________________. (b) The Adjusted EBITDA of Borrower and its Subsidiaries on a Stand Alone Basis for the four fiscal quarter period of the Borrower ending ___________, ___ is equal to $________________. (c) The ratio obtained by dividing the amount under clause (a) of this Item 2 by the amount under clause (b) of this Item 2 is __________, which is less than or equal to (x) if the amount under clause (a) does not exceed $[●], 4.00:1.00 and (y) if the amount under clause (a) does exceed $[●], 3.00:1.00, in each case, set forth in Section 6.12(b) of the Credit Agreement. (d) A calculation of each component of Adjusted EBITDA for the four fiscal quarter period of the Borrower ending ___________, ___ is shown below: [___]

Appears in 2 contracts

Sources: Credit Agreement, Credit Agreement (Fifth Street Asset Management Inc.)