Ratio of Senior Debt to EBITDA Clause Samples
The 'Ratio of Senior Debt to EBITDA' clause sets a financial covenant that limits the amount of senior debt a borrower can have relative to its earnings before interest, taxes, depreciation, and amortization (EBITDA). Typically, this clause requires the borrower to maintain a specified maximum ratio, such as not exceeding three times EBITDA in senior debt, which is periodically tested using the borrower's financial statements. By imposing this restriction, the clause helps lenders manage credit risk and ensures the borrower maintains a healthy leverage level, reducing the likelihood of default.
Ratio of Senior Debt to EBITDA. The Parent shall maintain a Ratio of Senior Debt to EBITDA, determined as of the end of each Fiscal Quarter of the Parent ending on or after December 31, 2000, for the four-Fiscal-Quarter period then ended, of not more than: Four Fiscal Quarter Period Ending Maximum Ratio --------------------------------- ------------- December 31, 2000 3.25 to 1.00 March 31, 2001 3.00 to 1.00 June 30, 2001 2.75 to 1.00 September 30, 2001 2.50 to 1.00 December 31, 2001 2.25 to 1.00 March 31, 2002 2.25 to 1.00 June 30, 2002 2.00 to 1.00
Ratio of Senior Debt to EBITDA. Parent will maintain a Ratio of Senior Debt to EBITDA of not greater than (a) 2.50 to 1.00 as of December 31, 2001, (b) 4.00 to 1.00 as of March 31, 2002, and (c) 2.50 to 1.00 as of June 30, 2002 and at all times thereafter. The Ratio of Senior Debt to EBITDA shall be calculated and tested quarterly as of the last day of each fiscal quarter of Parent on a cumulative basis (rolling four quarter basis) for the four fiscal quarters ended as of the date of calculation.
Ratio of Senior Debt to EBITDA. (a) The Senior Debt Coverage Ratio of Parent and its Subsidiaries, as of the last day of the quarter ending ___________, _____, is calculated as follows:
(i) Senior Debt outstanding as of the end of such period: $__________
(ii) EBITDA of Parent and its Subsidiaries for the [3/6/9/12] month period then ended: $__________ Item (i) divided by Item (ii) ---------- (=Ratio of Senior Debt to EBITDA) ____ :
(b) The Ratio of Senior Debt to EBITDA set forth above [is/is not] greater than or equal to the amount set forth in Section 7.20(a)(iv) of the ------------------- Loan Agreement for the corresponding period.
Ratio of Senior Debt to EBITDA. Borrower will not permit its ratio of Senior Debt outstanding to EBITDA (calculated for the last four consecutive fiscal quarter period then most recently ended for which financial statements are available)
(i) at any time when the Applicable Rating Level of Borrower is Level III, to be greater than 3.00 to 1.00, and (ii) at any time when the Applicable Rating Level of Borrower is Level I or Level II, to be greater than 2.50 to 1.00 at any time; PROVIDED, HOWEVER, that for periods of calculation ending on or before June 30, 2001, any calculation undertaken pursuant to this Section shall be made using an EBITDA calculated on a pro forma basis (inclusive of any acquisitions, including the Acquisition, and/or divestitures, if any, made during the relevant calculation period and, if any such acquisition or divestiture has a value in excess of U.S.$5,000,000, as if such acquisition or divestiture had occurred on the first day of such period).
Ratio of Senior Debt to EBITDA. Aviation Sales shall maintain a Ratio of Senior Debt to EBITDA for Aviation Sales and its Subsidiaries, determined as of the end of each Fiscal Quarter ending on or after December 31, 2000, for the Four-Quarter Period then ended, of not more than: FOUR-QUARTER PERIOD ENDING MAXIMUM RATIO -------------------------- ------------- December 31, 2000 3.25 to 1.00 March 31, 2001 3.00 to 1.00 June 30, 2001 2.75 to 1.00 September 30, 2001 2.50 to 1.00 December 31, 2001 2.25 to 1.00 March 31, 2002 2.25 to 1.00 June 30, 2002 2.00 to 1.00 Each September 30, December 31, 2.00 to 1.00 March 31 and June 30 thereafter
Ratio of Senior Debt to EBITDA. A Ratio of Senior Debt to EBITDA of 4:1.
Ratio of Senior Debt to EBITDA. Aviation Sales shall maintain a Ratio of Senior Debt to EBITDA for Aviation Sales and its Subsidiaries, determined as of the end of each Fiscal Quarter ending on or after December 31, 2000, for the Four-Quarter Period then ended, of not more than: "Four-Quarter Period Ending Maximum Ratio -------------------------- ------------- December 31, 2000 7.00 to 1.00 March 31, 2001 7.75 to 1.00 June 30, 2001 5.50 to 1.00 September 30, 2001 4.00 to 1.00 December 31, 2001 3.00 to 1.00 March 31, 2002 2.50 to 1.00 June 30, 2002 2.25 to 1.00 September 30, 2002 2.25 to 1.00 December 31, 2001 2.00 to 1.00 Each March 31, June 30, September 30 and 2.00 to 1.00 December 31 thereafter
5. Consent to Amendment to Revolving Credit Agreement. Effective as of June 25, 2000, subject to the Agent's receipt of the consent referenced in Section 9(a)(ix) below on or before August 14, 2000, the parties signatory hereto hereby consent to the amendment of the Existing Aviation Sales Credit Agreement on the terms and conditions attached hereto as Exhibit A.
Ratio of Senior Debt to EBITDA. Parent will maintain a Ratio of Senior Debt to EBITDA of not greater than (a) 2.75 to 1.00 as of ▇▇▇▇▇ ▇▇, ▇▇▇▇, (▇) 7.75 to 1.00 as of June 30, 2003, (c) 4.50 to 1.00 as of September 30, 2003, and (d) 2.50 to 1.00 as of December 31, 2003, and at all times thereafter. The Ratio of Senior Debt to EBITDA shall be calculated and tested quarterly as of the last day of each fiscal quarter of Parent on a cumulative basis (rolling four quarter basis) for the four fiscal quarters ended as of the date of calculation.