Minimum Leverage Ratio Clause Samples

The Minimum Leverage Ratio clause sets a required threshold for the ratio of a borrower's equity to its total assets or debt, ensuring that the borrower maintains a certain level of financial stability. In practice, this clause obligates the borrower to keep its leverage ratio above a specified minimum, which is typically monitored through regular financial reporting. By enforcing this requirement, the clause helps lenders manage risk by preventing the borrower from becoming excessively leveraged, thereby reducing the likelihood of default.
Minimum Leverage Ratio. The Company will not permit its Consolidated Leverage Ratio, calculated as of the end of any fiscal quarter ending after the Closing Date, to exceed (x) 3.00 for fiscal quarters ending on or before December 31, 2005, (y) 2.75 for fiscal quarters ending on or after March 31, 2006, and on or before December 31, 2006, or (z) 2.50 for fiscal quarters ending on or after March 31, 2007. For purposes of this Section 8(f)(iii) only, the calculation of Consolidated Leverage Ratio shall exclude any warrant liability or change therein and any effect on the financial statements of the Company resulting from or otherwise related to (i) the Omnibus Amendment dated as of the date hereof involving the Warrants, (ii) the repricing of the warrants on the date hereof that were issued by the Company on July 28, 2005 pursuant to the Note and Warrant Purchase Agreement and to Libra FE, LP and (iii) any related amendment to or waiver dated as of the date hereof involving the Securities Purchase Agreement, the Note and Warrant Purchase Agreement, any transaction document related thereto, or the registration rights agreement with Libra FE, LP.”
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Minimum Leverage Ratio. The ratio of consolidated Net Interest Bearing Debt to EBITDA (including any lease obligations) on a trailing four quarter basis shall at no time be greater than 4:1.
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Minimum Leverage Ratio. On the date of the initial Advance hereunder (and as a condition precedent thereto) and on the last day of each Collection Period (commencing with the last day of the sixth Collection Period after the date of the initial Advance hereunder), the Originator shall maintain and demonstrate to the Administrative Agent a Leverage Ratio of at least 10%.
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Minimum Leverage Ratio. The Company shall not allow the ratio of its Consolidated EBITDA (less cash Capital Expenditures) to the current portion of its Funded Indebtedness for the applicable period to be less than the amounts set forth in Schedule 8.10(a) for the applicable period identified therein.
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Minimum Leverage Ratio. The Company will not permit its Consolidated Leverage Ratio, calculated as of the end of any fiscal quarter ending after the Closing Date, to exceed (x) 3.00 for fiscal quarters ending on or before December 31, 2005, (y) 2.75 for fiscal quarters ending on or after March 31, 2006, and on or before December 31, 2006, or (z) 2.50 for fiscal quarters ending on or after March 31, 2007.
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Minimum Leverage Ratio. The Borrower will maintain at all times a Leverage Ratio greater than or equal to 5.0%.
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Minimum Leverage Ratio. Borrower shall not permit its ratio of Total Debt to EBITDA, as measured and confirmed annually on a trailing twelve (12) month basis to Lender's satisfaction, to exceed 6.25:1.
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Minimum Leverage Ratio. The Borrower shall not permit the Consolidated Leverage Ratio of the Borrower and its consolidated Subsidiaries as of the end of any fiscal quarter to be greater than .20 to 1.00.
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Related to Minimum Leverage Ratio

  • Maximum Leverage Ratio The Borrower will not permit the Leverage Ratio as of the end of any fiscal quarter to be greater than 0.55 to 1.00.

  • Total Leverage Ratio The Borrowers will not permit the Total Leverage Ratio on the last day of any fiscal quarter to exceed 3.75 to 1.00.

  • Total Net Leverage Ratio Holdings and its Restricted Subsidiaries, on a consolidated basis, shall not permit the Total Net Leverage Ratio on the last day of any Test Period to exceed the ratio set forth below opposite the last day of such Test Period:

  • Maximum Total Leverage Ratio The Borrower shall not permit the Total Leverage Ratio as of the last day of any four-quarter period to be greater than 4.00:1.00. Notwithstanding the foregoing: (a) for purposes of calculating the Total Leverage Ratio, until the earlier of (i) the consummation of a Specified Acquisition and (ii) termination of the acquisition agreement related to such Specified Acquisition, the Total Leverage Ratio shall not include any Indebtedness of the Borrower or the Guarantors to the extent that (x) such Indebtedness was incurred solely to finance such Specified Acquisition (and any related transactions) and the proceeds of such indebtedness are held as cash or cash equivalents in an escrow or equivalent arrangement (pending the consummation of such Specified Acquisition) and (y) such Indebtedness is redeemable or prepayable at no more than 101% of the principal amount thereof (plus accrued interest) in the event that the Specified Acquisition is not consummated; and (b) upon the Administrative Agent’s receipt of a written notice substantially in the form of Exhibit F hereto (a “Specified Acquisition Notice”), the Total Leverage Ratio as of the last day of any period for the four-quarter period beginning with the period in which such Specified Acquisition is consummated (such period in which the Specified Acquisition is consummated, the “Specified Acquisition Consummation Period”) and continuing through the fourth consecutive fiscal quarter ended immediately following the first day of the Specified Acquisition Consummation Period shall not exceed 4.50:1.00 (in lieu of the ratio set forth for such period above); provided that (i) the Borrower may deliver a Specified Acquisition Notice no more than three times during the life of this Agreement and (ii) after any Specified Acquisition Consummation Period, the Borrower must have a Total Leverage Ratio of no more than 4.00:1.00 for at least two consecutive fiscal quarters before the Borrower may elect to deliver a Specified Acquisition Notice for an additional time.

  • Cash Flow Leverage Ratio The Borrower will not permit the Cash Flow Leverage Ratio on the last day of any fiscal quarter to exceed 3.50 to 1.00.