Incurrence of Funded Debt Clause Samples
The "Incurrence of Funded Debt" clause restricts a party, typically a borrower, from taking on new long-term debt obligations without meeting certain conditions or obtaining prior consent. This clause often applies to loans, bonds, or other financial instruments with a maturity of more than one year, and may set specific thresholds or require lender approval before additional debt can be incurred. Its core function is to protect lenders by limiting the borrower's ability to increase its financial leverage, thereby reducing the risk of default and preserving the lender's position.
Incurrence of Funded Debt. The Company will not, and will not permit any Subsidiary to, directly or indirectly, create, incur, assume, guarantee, or otherwise become directly or indirectly liable with respect to, any Funded Debt, except:
(a) the Notes;
(b) Funded Debt owing to the Company or a Wholly-Owned Subsidiary;
(c) Funded Debt outstanding on the date hereof and disclosed in Schedule 5.15, and any renewals, extensions, and refundings thereof so long as (i) no Default or Event of Default shall exist, and (ii) there is no increase in the aggregate principal amount thereof outstanding, in each case on the date of any such renewal, extension or refunding; and
(d) additional Funded Debt so long as on the date the Company or such Subsidiary becomes liable with respect to any such Funded Debt and immediately after giving effect thereto and the concurrent retirement of any other Funded Debt,
(i) no Default or Event of Default exists,
(ii) the sum of (A) Consolidated Senior Funded Debt, plus (B) the Clean-Down Amount of Consolidated Current Debt, does not exceed 55% of Consolidated Total Capitalization, and
(iii) the sum of (A) Consolidated Funded Debt, plus (B) the Clean-Down Amount of Consolidated Current Debt, does not exceed 65% of Consolidated Total Capitalization.
Incurrence of Funded Debt. The Principal Borrower shall not, and shall not permit any other Obligor to, create, incur, assume, or permit to be outstanding any Funded Debt, except for Permitted Debt.
Incurrence of Funded Debt. The Borrower will not, nor will it permit any of its subsidiaries to, create, assume, incur or suffer to exist any Funded Debt except:
(a) Funded Debt arising or existing under this Loan Agreement and the other Credit Documents; and
(b) capital lease obligations and other Funded Debt incurred to provide all or a portion of the purchase price or cost of construction of an asset, provided that (i) such Debt when incurred will not exceed the purchase price or cost of construction of the asset, (ii) no such Debt shall be refinanced for a principal amount in excess of the principal balance outstanding thereon at the time of such refinancing, and (iii) the aggregate principal amount of such Debt shall not exceed $1,000,000 at any time outstanding.
Incurrence of Funded Debt. (a) Neither the Company nor any Subsidiary will create, issue, assume, guarantee or otherwise incur or become liable in respect of any Funded Debt, except:
(1) the Notes;
(2) Funded Debt of the Company and its Subsidiaries outstanding as of the date of this Agreement and reflected on the consolidated balance sheet of the Company and its Subsidiaries as of December 30, 1995;
(3) additional unsecured Funded Debt of the Company; PROVIDED that at the time of issuance thereof and after giving effect thereto and to the application of the proceeds thereof Funded Debt of the Company and its Subsidiaries shall not exceed 60% of Total Capitalization; and
(4) additional Funded Debt of the Company and its Subsidiaries secured by Liens permitted by and incurred within the limitations of Section 6.9(a)(8), Section 6.9(a)(9) or Section 6.9(a)(10); PROVIDED that at the time of issuance thereof and after giving effect thereto and to the application of the proceeds thereof Funded Debt of the Company and its Subsidiaries shall not exceed 60% of Total Capitalization; and
(5) Funded Debt of a Subsidiary to the Company or to a Wholly- Owned Subsidiary.
(b) Any corporation which becomes a Subsidiary after the date hereof shall for all purposes of this Section 6.8 be deemed to have created, assumed or incurred at the time it becomes a Subsidiary all Funded Debt of such corporation existing immediately after it becomes a Subsidiary.
(c) The renewal, extension or refunding of any Funded Debt issued or incurred in accordance with the limitations of Section 6.8(a) shall constitute the issuance of additional Funded Debt, which is, in turn, subject to the limitations of the applicable provisions of this Section 6.8.
Incurrence of Funded Debt. The Borrower will not, nor will it permit any of its subsidiaries to, create, assume, incur or suffer to exist any Funded Debt except:
(a) capital lease obligations and Funded Debt incurred to provide all or a portion of the purchase price or cost of construction of an asset, provided that (i) such Debt when incurred will not exceed the purchase price or cost of construction of the asset , and (ii) no such Debt shall be refinanced for a principal amount in excess of the principal balance outstanding thereon at the time of such refinancing; and
(b) other Funded Debt of the Borrower not to exceed $50,000,000.
Incurrence of Funded Debt. The Company will not, and will not permit any Subsidiary to, directly or indirectly create, incur, assume, guarantee or otherwise become directly or indirectly liable with respect to, any Funded Debt, except:
(a) the Notes;
(b) Funded Debt of a Subsidiary to the Company or to a Wholly-Owned Subsidiary; and
(c) additional Funded Debt of the Company and its Subsidiaries, provided that immediately after giving effect to the incurrence thereof and to the application of the proceeds therefrom, Consolidated Funded Debt does not exceed 55% of Consolidated Total Capitalization. For the purposes of this Section 10.4, any Person becoming a Subsidiary after the date hereof shall be deemed, at the time it becomes a Subsidiary, to have incurred all of its then outstanding Debt, and any Person extending, renewing or refunding any Debt shall be deemed to have incurred such Debt at the time of such extension, renewal or refunding.
Incurrence of Funded Debt. The Company will not, and will not permit any Restricted Subsidiary to, directly or indirectly, create, incur, assume, guarantee, or otherwise become directly or indirectly liable with respect to, any Funded Debt, except:
(a) Funded Debt evidenced by the Notes;
(b) Funded Debt of the Company and its Restricted Subsidiaries outstanding on the date hereof and disclosed in Schedule 5.15 hereto;
(c) Funded Debt of the Company in addition to that otherwise permitted by the foregoing provisions of this Section 10.1, provided that on the date the Company incurs or otherwise becomes liable with respect to any such additional Funded Debt and immediately after giving effect thereto and to the concurrent retirement of any other Funded Debt, (i) no Default or Event of Default shall exist and (ii) Consolidated Funded Debt does not exceed 60% of Total Capitalization; and
(d) Funded Debt of Restricted Subsidiaries permitted by Section 10.
Incurrence of Funded Debt. The Borrower will not, nor will it permit any of its subsidiaries to, create, assume, incur or suffer to exist any Funded Debt except:
(a) Funded Debt arising or existing under this Loan Agreement and the other Credit Documents;
(b) capital lease obligations and other Funded Debt incurred to provide all or a portion of the purchase price or cost of construction of an asset, provided that (i) such Debt when incurred will not exceed the purchase price or cost of construction of the asset, (ii) no such Debt shall be refinanced for a principal amount in excess of the principal balance outstanding thereon at the time of such refinancing, and (iii) the aggregate principal amount of such Debt shall not exceed $1,000,000 at any time outstanding; and
(c) Funded Debt extended to the Borrower by the Company and Axys Pharmaceuticals, Inc. in an aggregate principal amount not to exceed $6,300,000.
Incurrence of Funded Debt. The Company will not, and will not permit any Subsidiary to, directly or indirectly, create, incur, assume, guarantee, or otherwise become directly or indirectly liable with respect to, any Funded Debt, unless on the date the Company or such Subsidiary becomes liable with respect to any such Debt and immediately after giving effect thereto and the concurrent retirement of any other Debt,
(1) no Default or Event of Default exists, and
(2) Consolidated Funded Debt does not exceed 90% of Consolidat- ed Net Worth determined as of the then most recently ended fiscal year of the Company. For the purposes of this Section 10.2, any Person becoming a Subsidiary after the date hereof shall be deemed, at the time it becomes a Subsidiary, to have incurred all of its then outstanding Debt, and any Person extend- ing, renewing or refunding any Debt shall be deemed to have incurred such Debt at the time of such extension, renewal or refunding.
Incurrence of Funded Debt. (a) The Company will not, and will not permit any of its Restricted Subsidiaries to, directly or indirectly, create, incur, issue, assume, guarantee or otherwise become directly or indirectly liable, contingently or otherwise, with respect to (collectively, "incur") any Funded Debt; provided, that the Company and any Restricted Subsidiary may incur Funded Debt if, after giving pro forma effect to the incurrence of such Funded Debt and the use of proceeds thereof, the Company's ratio of Funded Debt to Tangible Net Worth would not exceed 4 to 1.
(b) The provisions of Section 4.9(a) hereof will not prohibit the incurrence of any of the following items of Funded Debt (collectively, "Permitted Funded Debt"):
(1) the incurrence by the Company of additional Funded Debt and letters of credit under Credit Facilities in an aggregate principal amount at any one time outstanding under this clause (1) (with letters of credit being deemed to have a principal amount equal to the maximum potential liability of the Company and its Restricted Subsidiaries thereunder) not to exceed $200.0 million less the aggregate amount of all Net Proceeds of Asset Sales applied by the Company or any of its Restricted Subsidiaries since the date of this Indenture to repay Funded Debt under this clause (1) and, to the extent such Funded Debt is revolving credit Funded Debt, effect a corresponding commitment reduction thereunder pursuant to the Section 4.10 hereof;
(2) the incurrence by the Company and its Subsidiaries of the Existing Funded Debt;
(3) the incurrence by the Company of Funded Debt represented by the Original Securities to be issued on the date of this Indenture and the Exchange Securities to be issued pursuant to the Registration Rights Agreement;
(4) the incurrence by the Company or any Restricted Subsidiary of Funded Debt represented by Purchase Money Debt, in an aggregate principal amount (including any Permitted Refinancing Debt incurred with respect thereto) not to exceed $35.0 million at any time outstanding;
(5) the incurrence by the Company or any of its Restricted Subsidiaries of Permitted Refinancing Debt in exchange for, or the net proceeds of which are used to refund, refinance, replace, defease or discharge Funded Debt (other than intercompany Funded Debt) that was permitted by this Indenture to be incurred under Section 4.9(a) hereof or clauses (2), (3), (4), (5) or (10) of this Section 4.9(b);
(6) the incurrence by the Company or any of its Restricted Subsidiari...