Interest Coverage Ratio Test Sample Clauses

The Interest Coverage Ratio Test is a financial covenant used to assess a borrower's ability to meet interest payment obligations on its debt. It typically requires the borrower to maintain a minimum ratio of earnings (often EBITDA or a similar metric) to interest expenses over a specified period, such as quarterly or annually. For example, a loan agreement might stipulate that the borrower's interest coverage ratio must not fall below 2.0x. This clause serves to protect lenders by ensuring the borrower remains financially healthy enough to service its debt, thereby reducing the risk of default.
Interest Coverage Ratio Test. Satisfied if (A) is greater than or equal to (B) as of the most recent Payment Date Report
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Interest Coverage Ratio Test. Neither the General Partner nor the Issuer will, nor will either of them permit any of its Subsidiaries to, incur any Debt if, immediately after giving effect to the incurrence of such Debt and the application of the proceeds from such Debt on a pro forma basis, the ratio of Property EBITDA to Interest Expense for the General Partner and its Subsidiaries determined on a consolidated basis in accordance with GAAP, in each case, for the then most recently ended four fiscal quarter period for which financial information is available prior to the incurrence of such Debt, would be less than 1.50 to 1.00.
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Interest Coverage Ratio Test. For purposes of Section 6.10, the Interest Coverage Ratio shall be not less than: As of the Closing Date and for all Monthly Fiscal Periods ending on March 31, 2005 and thereafter and including the Annual Fiscal Period 2007: 1.80:1.00 Monthly Fiscal Periods ending in Annual Fiscal Period 2008 and thereafter: 1.75:1.00
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Interest Coverage Ratio Test. A test that is satisfied at any time if the Interest Coverage Ratio is greater than or equal to 150%.
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Related to Interest Coverage Ratio Test

  • Interest Coverage Ratio The Borrower will not permit the Interest Coverage Ratio to be less than 2.75 to 1.0 on the last day of any Fiscal Quarter.

  • Minimum Interest Coverage Ratio The Borrowers shall not permit the Interest Coverage Ratio, calculated as of the end of each fiscal quarter for the four fiscal quarters then ended, to be less than 3.50 to 1.00.

  • Cash Flow Coverage Ratio The ratio of (a) the Company’s Cash Flow to (b) the sum of (i) the Company’s consolidated Interest Expense plus (ii) the Company’s scheduled payments of principal (including the principal component of Capital Leases) to be paid during the 12 months following any date of determination shall at all times exceed (1) 1.5 to 1.0. Compliance with the ratio will be tested as of the last day of each month, with Cash Flow and Interest Expense being calculated for the twelve months then ended.

  • Debt Service Coverage Ratio Calculation: If school owns its facility or if the school leases its facility and the lease is capitalized: (Net Income + Depreciation Expense + Interest Expense) divided by (Principal + Interest + Lease Payments) If school leases its facility and the lease is not capitalized: (Facility Lease Payments + Net Income + Depreciation Expense + Interest Expense) divided by (Principal + Interest + Lease Payments) Data Source: Annual Fiscal Audit Report

  • Minimum Consolidated Interest Coverage Ratio Permit the Consolidated Interest Coverage Ratio as of the end of any fiscal quarter of the Borrower to be less than 3.25 to 1.00.