Indebtedness of Restricted Subsidiaries Sample Clauses
The "Indebtedness of Restricted Subsidiaries" clause defines and limits the types and amounts of debt that subsidiaries designated as "restricted" within a corporate group are permitted to incur. Typically, this clause outlines specific thresholds, categories of permitted debt, or exceptions, such as allowing certain intercompany loans or refinancing of existing obligations, while prohibiting other forms of borrowing. Its core function is to protect creditors or investors by preventing excessive leverage at the subsidiary level, thereby reducing financial risk and ensuring the overall creditworthiness of the group remains stable.
Indebtedness of Restricted Subsidiaries. The Borrower will not permit any of its Restricted Subsidiaries to, create, incur, assume or permit to exist any Indebtedness, except:
(a) Indebtedness (if any) of any Restricted Subsidiary created hereunder and under the other Loan Documents;
(i) Indebtedness of any Restricted Subsidiary existing on the date hereof and either (x) set forth in Schedule 6.01 or (y) disclosed in the public reports of the Borrower filed or furnished with the SEC and (ii) any Refinancing Indebtedness in respect of any Indebtedness incurred pursuant to this clause (b);
(c) Indebtedness of any Restricted Subsidiary owed to the Borrower or any other Restricted Subsidiary;
(d) Guarantees by any Restricted Subsidiary of Indebtedness of any other Restricted Subsidiary; provided that the Indebtedness so Guaranteed is not prohibited by this Section 6.01;
(e) (i) Capital Lease Obligations of any Restricted Subsidiary, (ii) any Indebtedness of any Restricted Subsidiary incurred to finance the acquisition, construction or improvement of any fixed or capital assets, including any Indebtedness assumed by any Restricted Subsidiary in connection with the acquisition of any such assets or secured by a Lien on any such assets prior to the acquisition thereof (provided that (x) such Indebtedness is incurred prior to or within 270 days after such acquisition or the completion of such construction or improvement and (y) such Indebtedness does not exceed the cost of acquiring, constructing or improving such fixed or capital assets, together with any accrued and unpaid interest and fees and expenses in connection therewith) and (iii) any Refinancing Indebtedness in respect of any Indebtedness incurred pursuant to this clause (e);
(i) Indebtedness of any Person that becomes a Restricted Subsidiary (or of any Person not previously a Subsidiary that is merged or consolidated with or into a Restricted Subsidiary in a transaction permitted hereunder) after the date hereof, or Indebtedness of any Person that is assumed by any Restricted Subsidiary in connection with an acquisition of assets by such Restricted Subsidiary in an acquisition permitted hereunder; provided that (x) such Indebtedness exists at the time such Person becomes a Restricted Subsidiary (or is so merged or consolidated) or such assets are acquired and such Indebtedness is not created in contemplation of such Person becoming a Restricted Subsidiary (or such merger or consolidation) or such assets being acquired and (y) the Borrower is i...
Indebtedness of Restricted Subsidiaries. The Tenant shall not permit any Restricted Subsidiary of Tenant at any time to create, assume, incur, guarantee or otherwise become liable, directly or indirectly, for any Indebtedness, except:
(a) Indebtedness owed to the Tenant or to any Wholly-Owned Restricted Subsidiary of Tenant; and
(b) Subject to compliance with Section 10.4(c), Indebtedness which, when added to aggregate outstanding Indebtedness incurred pursuant to Section 10.70), shall not at any time exceed 25% of Consolidated Net Capital determined as of the end of the Tenant's most recently ended fiscal quarter.
Indebtedness of Restricted Subsidiaries. (a) LEVERAGE RATIO
Indebtedness of Restricted Subsidiaries that are not Loan Parties; provided that the aggregate outstanding principal amount of such Indebtedness shall not exceed the greater of $50,000,000 and 15% of Consolidated Adjusted EBITDA as of the last day of the most recently ended Test Period;
Indebtedness of Restricted Subsidiaries. Permit any Restricted Subsidiary to create, incur, assume or suffer to exist any Indebtedness, except:
(a) Indebtedness owed to the Borrower or to another Restricted Subsidiary;
(b) obligations under Swap Contracts, provided that such obligations are (or were) entered into by such Restricted Subsidiary in the ordinary course of business for the purpose of directly mitigating risks associated with liabilities, commitments, investments, assets, or property held or reasonably anticipated by such Restricted Subsidiary, or changes in the value of securities issued by such Restricted Subsidiary, and not for purposes of speculation or taking a “market view;”
(c) Indebtedness secured by Liens permitted by Section 7.01(r), provided that the aggregate outstanding principal amount of such Indebtedness does not at any time exceed the amount permitted by such Section;
(d) Indebtedness existing at the time of acquisition of any new Restricted Subsidiary by the Borrower or by a then-existing Restricted Subsidiary of the Borrower; provided that such Indebtedness was not incurred in contemplation of, and was in existence prior to, such acquisition and that neither the Borrower nor any other Restricted Subsidiary of the Borrower has any liability under such Indebtedness;
Indebtedness of Restricted Subsidiaries. The Company will not permit any Restricted Subsidiary that is not a Subsidiary Guarantor to create, assume, incur, guarantee or otherwise become liable, directly or indirectly, for any Indebtedness, except:
(a) Indebtedness owed to the Company or a Wholly Owned Restricted Subsidiary;
(b) Indebtedness outstanding as of the date of this Agreement that is described in Schedule 5.15;
(c) Indebtedness secured by Lien▇ ▇▇▇mitted under Section 10.6(g);
(d) Indebtedness of a Subsidiary outstanding at the time of its acquisition by the Company and initial designation as a Restricted Subsidiary, provided that (i) such Indebtedness was not incurred in contemplation of such Subsidiary becoming a Restricted Subsidiary and (ii) immediately after giving effect to the designation of such Subsidiary as a Restricted Subsidiary, no Default or Event of Default would exist;
(e) Indebtedness in addition to that permitted by Sections 10.3(a) through (d), provided that Priority Debt does not at any time exceed 20% of Adjusted Consolidated Net Worth, determined as of the end of the most recently ended fiscal quarter. Any Indebtedness of Subsidiary Guarantor that is released from the Subsidiary Guaranty shall be deemed to have been incurred by such Subsidiary on the date of such release.
Indebtedness of Restricted Subsidiaries. (other than Indebtedness permitted to be Incurred pursuant to any other clause of this Section 4.03(b)) in an aggregate principal amount on the date of Incurrence that, when added to all other Indebtedness Incurred pursuant to this clause (viii) and then outstanding, will not exceed $5,000,000; or
Indebtedness of Restricted Subsidiaries. The Company will not permit:
(a) Consolidated Indebtedness to exceed 65% of Consolidated Total Capitalization at any time; and
(b) Any Restricted Subsidiary to incur any Indebtedness if, after giving effect thereto and to the application of the proceeds therefrom, Priority Debt outstanding would exceed 20% of Consolidated Total Capitalization.
Indebtedness of Restricted Subsidiaries. Incurred to finance the replacement or expansion of facilities, including, without limitation, equipment used in a Related Business in an amount, when added to all other Indebtedness incurred pursuant to this clause (xiv) and then outstanding, not to exceed $25,000,000; and
Indebtedness of Restricted Subsidiaries. The Company will not permit: the Debt to EBITDA Ratio to be greater than 3.5 to 1.0 at any time; provided that, for any period of not more than four successive fiscal quarters, such ratio may be greater than 3.5 to 1.0, but in no event greater than 4.0 to 1.0, if the Company pays the additional interest provided for in Section 1.2; and any Restricted Subsidiary to incur any Indebtedness if, after giving effect thereto and to the application of the proceeds therefrom, Priority Debt outstanding would exceed 25% of Consolidated Total Capitalization. For purposes of this Section 10.1(b), any unsecured Indebtedness of a Restricted Subsidiary that is a Subsidiary Guarantor shall be deemed to have been incurred by such Subsidiary at the time it ceases to be a Subsidiary Guarantor.