Limitation on Incurrence of Additional Indebtedness. The Company will not, and will not permit any of its Restricted Subsidiaries to, directly or indirectly, create, incur, 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 of or as a consequence of the incurrence of any such Indebtedness, the Company and its Restricted Subsidiaries may incur Indebtedness (including Acquired Indebtedness), 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 is greater than 2.0 to 1.0. The first paragraph of this covenant shall not prohibit the incurrence of the following Indebtedness (collectively “Permitted Indebtedness”).
Appears in 2 contracts
Sources: Bridge Loan Agreement (Lyondell Chemical Co), Bridge Loan Agreement (Lyondell Chemical Co)
Limitation on Incurrence of Additional Indebtedness. The Company will shall not, and will shall not permit any of its Restricted Subsidiaries to, directly or indirectly, create, incur, 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 of or as a consequence of the incurrence of any such Indebtedness, the Company and its Restricted Subsidiaries may incur Indebtedness (including including, without limitation, Acquired Indebtedness), ) 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 is greater than 2.0 to 1.0. The first paragraph ; provided that the amount of this covenant Indebtedness (other than Acquired Indebtedness) that may be incurred in reliance on the preceding proviso by Restricted Subsidiaries of the Company (other than QD Capital) that have not Guaranteed the Securities in compliance with Section 4.14 or Section 4.19 shall not prohibit the incurrence of the following Indebtedness (collectively “Permitted Indebtedness”)exceed $20.0 million at any one time outstanding.
Appears in 2 contracts
Sources: Indenture (Quality Distribution Inc), Indenture (Quality Distribution Inc)
Limitation on Incurrence of Additional Indebtedness. The Company will shall not, and will shall not permit any of its Restricted Subsidiaries to, directly or indirectly, create, incur, 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 of or as a consequence of the incurrence of any such Indebtedness, the Company and its Restricted Subsidiaries may incur Indebtedness (including including, without limitation, Acquired Indebtedness), ) 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 is greater than 2.0 to 1.0. The first paragraph 1.0 provided that the -------- amount of this covenant Indebtedness (other than Acquired Indebtedness) that may be incurred pursuant to the foregoing by Restricted Subsidiaries of the Company that have not Guaranteed the Securities in compliance with Section 4.15 or 4.20 shall not prohibit the incurrence of the following Indebtedness (collectively “Permitted Indebtedness”)exceed $50.0 million at any one time outstanding.
Appears in 1 contract
Sources: Indenture (GSL Corp)
Limitation on Incurrence of Additional Indebtedness. The Company will shall not, and will shall not permit any of its Restricted Subsidiaries to, directly or indirectly, create, incur, 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 of or as a consequence of the incurrence of any such Indebtedness, the Company and its or any Restricted Subsidiaries Subsidiary may incur Indebtedness (including including, without limitation, Acquired Indebtedness), 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 is greater than 2.0 to 1.0. The first paragraph For purposes of determining any particular amount of Indebtedness under this covenant Section 4.12, guarantees, Liens or obligations with respect to letters of credit supporting Indebtedness otherwise included in the determination of such particular amount shall not prohibit the incurrence of the following Indebtedness (collectively “Permitted Indebtedness”)be included.
Appears in 1 contract
Sources: Indenture (Nationsrent Inc)
Limitation on Incurrence of Additional Indebtedness. The For so long as any Notes are outstanding (subject to Section 4.14), the Company will not, and nor will not it permit any of its Restricted Subsidiaries to, directly or indirectly, create, incur, assume, guarantee, acquire, become liable, contingently or otherwise, with respect to, or otherwise become responsible for payment of (collectively, “incur”) incur any Indebtedness other than Permitted IndebtednessDebt; provided, however, that if the Company may, and may permit any of its Subsidiaries to, incur Indebtedness if:
(a) no Default or Event of Default shall have occurred and be continuing at the time of such incurrence or would occur as a consequence of such incurrence; and
(b) after giving pro forma effect to such incurrence, the incurrence Consolidated Leverage Ratio would not exceed 4.00 to 1.00. In the event that an item of any such IndebtednessIndebtedness meets the criteria of more than one of the categories of “Permitted Debt,” or is entitled to be incurred pursuant to this Section 4.09, the Company may, in its sole discretion, classify, reclassify or divide such item of Indebtedness and its Restricted Subsidiaries may incur will only be required to include the amount and type of such Indebtedness (including Acquired Indebtedness), if on the date in one of the incurrence of such Indebtedness, after giving effect to the incurrence thereof, the Consolidated Fixed Charge Coverage Ratio clauses of the Company is greater than 2.0 to 1.0. The first paragraph definition of Permitted Debt or this covenant shall not prohibit the incurrence of the following Indebtedness (collectively “Permitted Indebtedness”)Section 4.09.
Appears in 1 contract
Sources: Indenture (Cyan Inc)
Limitation on Incurrence of Additional Indebtedness. The Company will not, and will not permit any of its Restricted Subsidiaries to, directly or indirectly, create, incur, 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 of or as a consequence of the incurrence of any such Indebtedness, the Company and its Restricted Subsidiaries which are Guarantors may incur Indebtedness (including Acquired Indebtedness), ) 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 is greater than 2.0 to 1.01.0.l.”
4. The first paragraph Modification of this covenant shall not prohibit the incurrence Section 6.02. Clause (b) of Section 6.02 of the following Indebtedness Indenture is hereby amended so as to delete subclauses (collectively “Permitted Indebtedness”3) and (4) in their entirety and renumber subclause (5) as subclause (3)., such that clause (b) of Section 6.02 of the Indenture shall provide as follows (deletion and emphasis added):
Appears in 1 contract
Sources: Third Supplemental Indenture (Lyondell Chemical Co)