Total Debt to EBITDAX Clause Samples
The Total Debt to EBITDAX clause sets a financial covenant that limits the ratio of a company's total debt to its earnings before interest, taxes, depreciation, amortization, and exploration expenses (EBITDAX). This clause typically requires the borrower to maintain this ratio below a specified threshold, which is periodically tested using the company's financial statements. By imposing this restriction, the clause helps lenders manage credit risk and ensures the borrower maintains a manageable level of debt relative to its cash-generating ability.
Total Debt to EBITDAX. The Borrower will not permit, as of the last day of any fiscal quarter commencing with the fiscal quarter ending June 30, 2014, its ratio of (i) total Debt of the Borrower and the Restricted Subsidiaries as of such date to (ii) EBITDAX of the Borrower and the Restricted Subsidiaries for the trailing four quarter period then ended to exceed (A) 4.50 to 1.0 for the fiscal quarter ending June 30, 2014 and for the fiscal quarter ending September 30, 2014 and (B) 4.25 to 1.0 for the fiscal quarter ending December 31, 2014 and for each fiscal quarter ending thereafter.
Total Debt to EBITDAX. The Borrower will not permit, as of the last day of any fiscal quarter, its ratio of (i) total Debt of the Borrower and the Restricted Subsidiaries as of such date to (ii) EBITDAX of the Borrower and the Restricted Subsidiaries for the trailing four quarter period then ended to exceed (x) 5.25 to 1.0 for the fiscal quarter ending September 30, 2011, and (y) 4.75 to 1.0 for each fiscal quarter thereafter.
Total Debt to EBITDAX. The Company will not at any time create, incur, assume or suffer to exist any Total Debt of the Combined Group which exceeds in the aggregate the product of (a) 3.50 multiplied by (b) EBITDAX for the four consecutive fiscal quarters then most recently ended.
Total Debt to EBITDAX. The Borrower will not allow its ratio of Consolidated Total Debt to Consolidated EBITDAX to be less than 4.0 to 1.0 as of the end of any calendar quarter beginning with the calendar quarter ending March 31, 2001, calculated on a trailing four-quarter basis.
Total Debt to EBITDAX. The Borrower will not permit, as of the last day of any fiscal quarter, its ratio of (i) total Debt of the Borrower and the Restricted Subsidiaries as of such date to (ii) EBITDAX of the Borrower and the Restricted Subsidiaries for the trailing four quarter period then ended (such ratio, the “Leverage Ratio”) to exceed (A) 4.75 to 1.0 for the fiscal quarter ending December 31, 2012, (B) 4.50 to 1.0 for the fiscal quarter ending March 31, 2013, (C) 4.25 to 1.0 for the fiscal quarter ending June 30, 2013 and (D) 4.25 to 1.0 for the fiscal quarter ending September 30, 2013 and for each fiscal quarter thereafter, unless, in the case of this (D) only, a Material Asset Sale shall have occurred during any such fiscal quarter in which case the Leverage Ratio shall not exceed 4.00 to 1.0 for such fiscal quarter.”
Total Debt to EBITDAX. The Borrower will not allow its ratio of Consolidated Total Debt to Consolidated EBITDAX to be less than (i) 4.75 to 1.0 as of the end of the calendar quarters ended December 31, 1999, March 31, 2000 and June 30, 2000; (ii) 4.50 to 1.0 for the calendar quarter ended September 30, 2000; (iii) 4.25 to 1.0 for the calendar quarter ended December 31, 2000; and (iv) 4.0 to 1.0 as of the end of any calendar quarter thereafter beginning with the calendar quarter ending March 31, 2001. For each calendar quarter through June 30, 2000, EBITDAX will be annualized from October 1, 1999 through the end of the period being calculated. Thereafter, beginning September 30, 2000 the ratio shall be calculated on a trailing four-quarters basis.
Total Debt to EBITDAX. The Borrower shall not permit the ratio of (a) the consolidated total Debt of the Borrower as of each fiscal quarter end (but excluding any Debt attributable to permitted hedging arrangements) to (b) the consolidated EBITDAX of the Borrower for the four (4) fiscal quarter period then ended, to be greater than 3.50 to 1.00; provided that, EBITDAX will be annualized for the first three such fiscal quarters until a full four-fiscal quarter period has elapsed after the Restructuring Effective Date (e.g. first fiscal quarter period times four, two fiscal quarter period times two, etc.
Total Debt to EBITDAX. The Borrower will not permit, as of the last day of any fiscal quarter, its ratio of (i) total Debt of the Borrower and the Restricted Subsidiaries as of such date to (ii) EBITDAX of the Borrower and the Restricted Subsidiaries for the trailing four quarter period then ended (such ratio, the “Leverage Ratio”) to exceed (A) 4.5 to 1.0 commencing with the fiscal quarter ending June 30, 2011 through the fiscal quarter ending September 30, 2011, (B) 4.25 to 1.0 for the fiscal quarter ending December 31, 2011 and (C) 4.0 to 1.0 commencing with the fiscal quarter ending March 31, 2012 and for each fiscal quarter thereafter; provided that, if the Borrower issues Second Lien Debt or Senior Notes in an aggregate principal amount in excess of $350,000,000 or if the Baytex Acquisition Closing Date occurs, then commencing with the fiscal quarter ending June 30, 2012, the Borrower shall not permit, as of the last day of such fiscal quarter and the fiscal quarter ending September 30, 2012, its Leverage Ratio to exceed 4.5 to 1.0 and shall not permit, as of the last day of the fiscal quarter ending December 31, 2012 and each fiscal quarter thereafter, its Leverage Ratio to exceed 4.0 to 1.0.”