Relationship of Combined EBITDA to Combined Debt Service Sample Clauses
The 'Relationship of Combined EBITDA to Combined Debt Service' clause defines the required ratio between a company's earnings before interest, taxes, depreciation, and amortization (EBITDA) and its total debt service obligations. Typically, this clause sets a minimum threshold for the ratio, ensuring that the company generates sufficient cash flow to cover its debt payments. For example, a lender may require that the company's combined EBITDA be at least 1.5 times its combined debt service. The core function of this clause is to protect lenders by ensuring the borrower maintains adequate financial health to meet debt obligations, thereby reducing the risk of default.
Relationship of Combined EBITDA to Combined Debt Service. As of the last day of any fiscal quarter, the ratio of (1) Combined EBITDA to (2) Combined Debt Service (each for the twelve (12)-month period ending on such last day of such quarter), to be less than 1.50 to 1.00.
Relationship of Combined EBITDA to Combined Debt Service. For any calendar quarter, the ratio of (1) Combined EBITDA to (2) Combined Debt Service (each for such quarter and annualized, i.e., multiplied by four (4)), to be less than 2.00 to 1.00.
Relationship of Combined EBITDA to Combined Debt Service. Section 8.05 Ratio of Unsecured Indebtedness to Unencumbered Asset Value Section 8.06 Relationship of Unencumbered Combined EBITDA to Unsecured Interest Expense Section 8.07 Relationship of Dividends to Funds From Operations Section 8.08 Relationship of Secured Indebtedness to Capitalization Value