Ratio of Total Debt to Total Capitalization Clause Samples
The 'Ratio of Total Debt to Total Capitalization' clause sets a financial covenant that limits the proportion of a company's total debt relative to its total capitalization. Typically, this clause requires the company to maintain its total debt below a specified percentage of the sum of its debt and equity, ensuring the company does not become over-leveraged. By imposing this restriction, the clause helps protect lenders or investors by reducing the risk of financial instability and ensuring the company maintains a balanced capital structure.
Ratio of Total Debt to Total Capitalization. The Borrower will not permit the ratio of (i) Total Debt on any of the dates set forth below to (ii) Total Capitalization on such date, to exceed the ratio set forth below opposite such date: December 31, 2003 57.3 % March 31, 2004 57.3 % June 30, 2004 57.3 % September 30, 2004 57.3 % December 31, 2004 57.3 % March 31, 2005 57.3 % June 30, 2005 57.3 % September 30, 2005 57.3 % December 31, 2005 57.3 % March 31, 2006 57.3 % June 30, 2006 57.3 % September 30, 2006 57.3 % December 31, 2006 57.3 % March 31, 2007 57.3 % June 30, 2007 57.3 % September 30, 2007 57.3 % December 31, 2007 57.3 % March 31, 2008 57.3 % June 30, 2008 57.3 % 12. Amendment to Section 6.16. Section 6.16 is hereby amended by deleting it in its entirety and substituting the following in lieu thereof:
Ratio of Total Debt to Total Capitalization. The Borrower ------------------------------------------- will not permit the ratio of (i) Total Debt on any of the dates set forth below to (ii) Total Capitalization on such date, to exceed the ratio set forth below opposite such date: Date Ratio ---- ----- On or after October 1, 1999 but prior to October 1, 2000 18% On or after October 2, 2000 but prior to April 1, 2001 30% On or after April 2, 2001 but prior to July 1, 2001 38% On or after July 1, 2001 but prior to October 1, 2001 42% On or after October 1, 2001 but prior to April 2002 42% On or after April 1, 2002 but prior to July 1, 2002 44% On or after July 1, 2002 but prior to January 1, 2003 45% On or after January 1, 2003 but prior to January 1, 2004 43% On or after January 1, 2004 but prior to January 1, 2005 38% On or after January 1, 2005, but prior to January 1, 2006 82% Thereafter 81%
Ratio of Total Debt to Total Capitalization. The ratio of Total Debt to Total Capitalization will not at the end of each Fiscal Month exceed 0.60 to 1.00.
Ratio of Total Debt to Total Capitalization. The Borrower will ------------------------------------------- not permit the ratio, calculated as of the end of each fiscal quarter of the Borrower, of Total Debt to Total Capitalization to exceed the ratio set forth below for the period during which such fiscal quarter end occurs: 105
Ratio of Total Debt to Total Capitalization. The Lessee will ------------------------------------------- not permit the ratio, calculated as of the end of each fiscal quarter of the Lessee, of Total Debt to Total Capitalization to exceed the ratio set forth below for the period during which such fiscal quarter end occurs: Period Ratio ------ ----- From December 31, 1995 through December 31, 1996 0.900 to 1.00 From January 1, 1997, through December 31, 1997 0.850 to 1.00 From January 1, 1998, through December 31, 1998 0.775 to 1.00 From January 1, 1999, through December 31, 1999 0.725 to 1.00 From January 1, 2000, and at all times there-after 0.675 to 1.00