Common use of Incurrence of Indebtedness Clause in Contracts

Incurrence of Indebtedness. The Company shall not, and shall not permit any of its Restricted Subsidiaries to, directly or indirectly, create, incur, issue, assume, guarantee, acquire, become liable, contingently or otherwise, with respect to, or otherwise become responsible for payment of (collectively, “incur”) any Indebtedness (other than Permitted Indebtedness); provided, however, that the Company and any Restricted Subsidiary may incur Indebtedness (including Acquired Indebtedness), in each case if, on the date of the incurrence of such Indebtedness, after giving effect to the incurrence thereof, the Consolidated Fixed Charge Coverage Ratio of the Company would have been greater than 2.0 to 1.0 (such Indebtedness, “Ratio Indebtedness”); provided, however, that (x) the amount of Indebtedness (including Acquired Indebtedness) that may be incurred pursuant to the foregoing by Restricted Subsidiaries that are not Guarantors shall not exceed $400.0 million at any one time outstanding and (y) if such Ratio Indebtedness is to be used in whole or in part to finance a Limited Condition Acquisition, such calculation shall be determined solely as of the date on which the definitive documentation with respect to such Limited Condition Acquisition is entered into.

Appears in 13 contracts

Sources: Indenture (TransDigm Group INC), Indenture (TransDigm Group INC), Indenture (TransDigm Group INC)

Incurrence of Indebtedness. The Company shall not, and shall not permit any of its Restricted Subsidiaries to, directly or indirectly, create, incur, issue, assume, guarantee, acquire, guaranty or otherwise become directly or indirectly liable, contingently or otherwise, with respect to, or otherwise become responsible for payment of to (collectively, "incur") any Indebtedness (other than Permitted Indebtedness)including Acquired Debt) and that the Company shall not issue any Disqualified Stock and shall not permit any of its Restricted Subsidiaries to issue any shares of preferred stock or Disqualified Stock; provided, however, that the Company and any Restricted Subsidiary may incur Indebtedness (including Acquired Indebtedness)Debt) or issue shares of Disqualified Stock, in each case if, on the date and any of the incurrence of such IndebtednessCompany's Restricted Subsidiaries may incur Indebtedness under the Bank Credit Agreement and Acquired Debt, after giving effect to if the incurrence thereof, the Consolidated Company's Fixed Charge Coverage Ratio of for the Company Company's most recently ended four full fiscal quarters for which internal financial statements are available immediately preceding the date on which such additional Indebtedness is incurred or such Disqualified Stock is issued (taken as one accounting period) would have been greater than 2.0 to 1.0 (such Indebtedness1.0, “Ratio Indebtedness”); provided, however, that (x) the amount of Indebtedness determined on a pro forma basis (including Acquired Indebtedness) that may be incurred pursuant to the foregoing by Restricted Subsidiaries that are not Guarantors shall not exceed $400.0 million at any one time outstanding and (y) if such Ratio Indebtedness is to be used in whole or in part to finance a Limited Condition Acquisition, such calculation shall be determined solely as pro forma application of the date on which net proceeds therefrom), as if the definitive documentation with respect to additional Indebtedness had been incurred (or Disqualified Stock issued) at the beginning of such Limited Condition Acquisition is entered intofour-quarter period.

Appears in 1 contract

Sources: Indenture (All American Communications Inc)

Incurrence of Indebtedness. The Company shall not, and shall not permit any of its Restricted Subsidiaries to, directly or indirectly, create, incur, issue, assume, guarantee, acquire, become liable, contingently or otherwise, with respect to, or otherwise become responsible for payment of (collectively, "incur") any Indebtedness (other than Permitted Indebtedness); provided, however, that if no Default or Event of Default shall have occurred and be continuing at the time or as a consequence of the incurrence of any such Indebtedness, the Company and any Restricted Subsidiary the Guarantors may incur Indebtedness (including including, without limitation, Acquired Indebtedness)) and Restricted Subsidiaries of the Company that are not Guarantors may incur Acquired Indebtedness, in each case if, if on the date of the incurrence of such Indebtedness, after giving effect to the incurrence thereof, the Consolidated Fixed Charge Coverage Ratio of the Company would have been greater than 2.0 to 1.0 (such Indebtedness, “Ratio Indebtedness”); provided, however, that (x) the amount of Indebtedness (including Acquired Indebtedness) that may be incurred pursuant to the foregoing by Restricted Subsidiaries that are not Guarantors shall not exceed $400.0 million at any one time outstanding and (y) if such Ratio Indebtedness is to be used in whole or in part to finance a Limited Condition Acquisition, such calculation shall be determined solely as of the date on which the definitive documentation with respect to such Limited Condition Acquisition is entered into1.0.

Appears in 1 contract

Sources: Indenture (Marathon Power Technologies Co)