Minimum Interest Coverage Clause Samples
The Minimum Interest Coverage clause sets a required threshold for the ratio of a borrower's earnings to its interest expenses, ensuring the borrower maintains sufficient income to cover interest payments on its debt. Typically, this is measured by comparing EBITDA or a similar earnings metric to interest obligations over a specified period, and the borrower must regularly demonstrate compliance with this ratio. The core function of this clause is to protect lenders by reducing the risk of default, ensuring the borrower remains financially stable enough to meet its debt service commitments.
Minimum Interest Coverage. The Borrower will not permit the ratio of EBITDA to Consolidated Interest Expense as at any fiscal quarter end for the four fiscal quarters then ending to be less than 3.00 to 1.0.
Minimum Interest Coverage. Each of the Company and the Parent Guarantor will not at any time permit the ratio of Consolidated Income Available for Debt Service to the Annual Debt Service Charge for the period consisting of the four consecutive fiscal quarters then most recently ended to be less than 1.50 to 1.00.
Minimum Interest Coverage. Commencing on October 1, 2013, the Borrower shall maintain a ratio of Consolidated EBITDA to Consolidated Net Interest Expense of not less than 2.00 to 1.00. Such ratio shall at all times be calculated on a trailing four quarter basis.”
Minimum Interest Coverage. Commencing with the third fiscal quarter of 2011, the Borrower shall maintain a ratio of Consolidated EBITDA to Consolidated Net Interest Expense of not less than 2.50 to 1.00. Such ratio shall be calculated quarterly on a trailing quarter basis from and including the third fiscal quarter of 2011, provided that for the third fiscal quarter of 2012 and all periods thereafter such ratio shall be calculated on a trailing four quarter basis.
Minimum Interest Coverage. The Company shall not permit the ratio of (i) EBITDA of the Company to (ii) Cash Interest Expense of the Company for any four (4) consecutive Fiscal Quarter periods to be less than 2.00:1.00.
Minimum Interest Coverage. Not permit the Interest Coverage ------------------------- Ratio as of the last day of any Computation Period to be less than the applicable ratio set forth below: Computation Interest Period Ending: Coverage Ratio -------------- -------------- Closing Date through 12/31/00 1.49 to 1.0 1/01/01 through 12/31/01 1.70 to 1.0 1/01/02 and thereafter 1.91 to 1.0
Minimum Interest Coverage. Not permit the Interest Coverage Ratio for any Computation Period set forth below to be less than the applicable ratio set forth below for such Computation Period: Computation Period Ending Ratio ------------- ----- 4/30/99 - 1/31/00 1.15 to 1 4/30/00 - 7/31/00 1.35 to 1 10/31/00 - 1/31/01 1.50 to 1 4/30/01 - 7/31/01 1.75 to 1 10/31/01 - 1/31/02 2.25 to 1 Thereafter 2.50 to l."
Minimum Interest Coverage. The Company shall not permit the Consolidated Interest Coverage Ratio as of the end of any fiscal quarter to be less than 3.5 to 1.0.
Minimum Interest Coverage. The Borrower will not permit its Consolidated Interest Coverage Ratio to be less than 3.00 to 1.00 at any time; provided that upon the consummation of a Material Acquisition that is a Permitted Acquisition, the Borrower will not permit such ratio to be less than 2.75 to 1.00 until the end of the last day of the third full fiscal quarter of the Borrower after the consummation of such Material Acquisition, at which time the lowest Consolidated Interest Coverage Ratio permitted to be maintained by the Borrower will automatically revert back to 3.00 to 1.00.
Minimum Interest Coverage. Borrower shall not permit, at any time, the ratio (the “Interest Coverage Ratio”) of (a) Home Building EBITDA to (b) Consolidated Home Building Interest Incurred, for any period consisting of the preceding four (4) consecutive fiscal quarters (each, a “Measurement Period”), to be less than 1.75 to 1.0. An example of the calculation of the Interest Coverage Ratio is as set forth in Schedule 8.20.