Funded Debt to Total Capitalization Clause Samples
The 'Funded Debt to Total Capitalization' clause defines a financial covenant that limits the ratio of a company's funded debt to its total capitalization. In practice, this clause requires the borrower to maintain its funded debt—such as loans and bonds—below a specified percentage of the sum of its funded debt and equity. For example, a lender may require that this ratio not exceed 60%, ensuring the company does not become overly leveraged. The core function of this clause is to manage the borrower's financial risk by preventing excessive debt relative to its overall capital structure, thereby protecting the lender's interests.
Funded Debt to Total Capitalization. The ratio of the Borrower’s Consolidated Total Funded Debt to the Borrower’s Total Capitalization will not exceed sixty-five percent (65%) at the end of any Fiscal Quarter.
Funded Debt to Total Capitalization. The Funded Debt to Total Capitalization (as defined in the Term Loan Credit Agreement) is ________________, which is in compliance with the required maximum Funded Debt to Total Capitalization of 65% for the test period end date of _____________________.
Funded Debt to Total Capitalization. The Borrower, on a consolidated basis, will maintain a ratio of Funded Debt to Total Capitalization not to exceed 60% at September 30, 1996 through March 30, 1997; and not to exceed 55% at March 31, 1997 and at all times thereafter; calculated on a quarterly basis.
Funded Debt to Total Capitalization. The Seller, on a consolidated basis, will maintain a ratio of Funded Debt to Total Capitalization not to exceed 60% (.60 to 1.0) at all times, calculated on a quarterly basis.
Funded Debt to Total Capitalization. Borrower's Funded Debt ------------------------------------ (excluding Restricted Subsidiaries) shall not exceed 60% of its Total Capitalization.
Funded Debt to Total Capitalization. The Borrowers shall not permit the ratio of consolidated Funded Debt to consolidated Total Capitalization to be greater than 50% at any time.
Funded Debt to Total Capitalization. Permit or suffer the ratio of Consolidated Funded Debt of the Company and its Subsidiaries to Consolidated Total Capitalization of the Company and its Subsidiaries to exceed .68 to 1.0 at any time, decreasing to .65 to 1.0. on the earlier of (A) the date which is nine (9) months after the date of the Merger, or (B) the date which is nine (9) months after the date on which the aggregate amount of Loans outstanding hereunder exceed $100,000,000.
Funded Debt to Total Capitalization. Permit or suffer the ratio of Funded Debt to Total Capitalization to be (i) greater than 0.35 to 1.00 at any time on or after the Effective Date to but excluding December 31, 2001 or (ii) equal to or greater than 0.25 to 1.00 on December 31, 2001 or at any time thereafter.
Funded Debt to Total Capitalization. Kingsway shall maintain at all times a ratio of Funded Debt to Total Capitalization on a Consolidated basis as follows: (i) of not greater than 0.45:1.00 for the period commencing on the Closing Date and ending on ▇▇▇▇▇ ▇▇, ▇▇▇▇, (▇▇) of not greater than 0.40% for the period commencing April 1, 2000 and ending September 30, 2000, (iii) of not greater than 0.35% for the period commencing October 1, 2000 and ending on December 31, 2001, and (iv) of not greater than 0.30% at all times thereafter.
Funded Debt to Total Capitalization. Section 7.6 of the Original Agreement is hereby amended in its entirety to read as follows: