Maximum Cash Flow Leverage Sample Clauses
The Maximum Cash Flow Leverage clause sets a limit on the amount of debt a party can incur relative to its cash flow, typically measured by a ratio such as total debt to EBITDA. In practice, this clause requires the borrower to maintain its leverage below a specified threshold, which is periodically tested using financial statements. By imposing this restriction, the clause helps lenders manage credit risk and ensures the borrower remains financially stable, reducing the likelihood of default due to excessive borrowing.
Maximum Cash Flow Leverage. Maintain as of the end of ------------ -------------------------- each fiscal quarter of the Borrower, a ratio of (i) Senior Funded Indebtedness for the Borrower and its Eligible Subsidiaries to (ii) Adjusted EBITDA for the Borrower and its Eligible Subsidiaries for the four fiscal quarters most recently ended, of not more than the amounts set forth below: PERIOD RATIO ------ ----- -------------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------------- Closing Date through 7/31/99 4.00:1* -------------------------------------------------------------------------------------------------------- 8/1/99 through 7/31/00 3.25:1* -------------------------------------------------------------------------------------------------------- 8/1/00 through 7/31/01 2.75:1 -------------------------------------------------------------------------------------------------------- 8/1/01 and thereafter 2.25:1 --------------------------------------------------------------------------------------------------------
25:1 upon the receipt by the Borrower of a binding Commitment reasonable acceptable to Lenders, for an off-balance sheet refinancing of the Construction Loans, in form and substance satisfactory to the Lenders.
Maximum Cash Flow Leverage. Maintain a Cash Flow Leverage Ratio, not to exceed the ratios indicated for each period specified below, as tested on a rolling four quarters basis as of March 31, June 30, September 30, and December 31 of each year based upon the financial results of the Borrower and its Subsidiaries for the four most recent fiscal quarters then ended: Period Ratios 9/30/04 3.00:1.00 12/31/04 3.00:1.00 3/31/05 2.50:1.00 6/30/05 2.50:1.00 9/30/05 2.50:1.00 12/31/05 2.50:1.00 3/31/06 and thereafter 2.25:1.00
Maximum Cash Flow Leverage. Maintain a Cash Flow Leverage Ratio, not to exceed the ratio indicated for each period specified below, as tested on a rolling four quarters basis as of March 31, June 30, September 30, and December 31 of each year based upon the financial results of the Borrower and its Subsidiaries for the four most recent fiscal quarters then ended: 6/30/05 2.50:1.00 9/30/05 2.50:1.00 12/31/05 2.50:1.00 3/31/06 and thereafter 2.25:1.00 Notwithstanding the foregoing, in the event the Borrower exercises its rights under Section 2.14 and the amount of the Commitment is increased to the Increased Amount, the Borrower shall maintain a Cash Flow Leverage Ratio not to exceed 3.00:1.00 for the test period beginning with the fiscal quarter in which the Commitment is increased, and for the test periods for the following three (3) fiscal quarters thereafter. At the end of such four (4) fiscal quarter period and for each fiscal quarter thereafter, the Borrower shall maintain a Cash Flow Leverage Ratio not to exceed 2.75:1.00.
Maximum Cash Flow Leverage. The ratio of Funded Debt as of the last day of any fiscal quarter of the Borrower to EBITDA for the period of four consecutive fiscal quarters of the Borrower ending on such day and ending:
(i) after the Effective Date and on or before June 30, 1998, to be greater than 4.25 to 1;
(ii) after June 30, 1998 and on or before June 30, 1999, to be greater than 4.00 to 1; or
(iii) after June 30, 1999, to be greater than 3.75 to 1.
Maximum Cash Flow Leverage. The Borrower will ensure that its Cash Flow Leverage does not exceed 4.50 to 1.00 at the end of each fiscal quarter.
Maximum Cash Flow Leverage. As of the end of each Fiscal Quarter, commencing with the Fiscal Quarter ending March 31, 2025, Borrowers, collectively, shall maintain a ratio of (i) Funded Debt to (ii) EBITDA (based on the trailing twelve month period), of not greater than 2.00 to 1.00.
(f) Commencing on the Effective Date, Annex A to the Loan Agreement is amended and restated as provided in Annex A to this Amendment.
(g) Commencing on the Effective Date, Exhibit B to the Loan Agreement is amended and restated as provided in Exhibit B to this Amendment.
(h) Except as specifically set forth herein, Note and the Loan Documents previously delivered by the Borrowers shall remain in full force and effect and are hereby ratified and confirmed in all respects. The indebtedness evidenced by the Note is continuing indebtedness of the Borrowers and nothing herein shall be deemed to constitute a payment, settlement or novation of the Note, or to release or otherwise adversely affect any lien or security interest securing such indebtedness or any rights of the Lender against any party primarily or secondarily liable for such indebtedness.