Example ContractsClausesDebt Service Coverage Ratio
Debt Service Coverage Ratio
Debt Service Coverage Ratio contract clause examples

Debt Service Coverage Ratio. The Borrower will not permit its Debt Service Coverage Ratio, determined for any period of four consecutive fiscal quarters ending on the last day of each applicable fiscal quarter to be less than 1.25:1.00.

DEBT SERVICE COVERAGE RATIO. Borrower shall at all times maintain a Debt Service Coverage Ratio of not less than 2.00 to 1.00, which shall be measured on a quarterly basis as of March 31, June 30, September 30 and December 31 of each calendar year during the term of the Loan, commencing March 31, 2020, for the preceding three (3) consecutive calendar month period of time. In the event the Debt Service Coverage Ratio falls below 2.00 to 1.00 at any time, Lender will cease to make any further Advances but agrees to not accelerate repayment of the Loans pursuant to Section 8.1 so long as no other Event of Default has occurred; provided that Lender expressly reserves the right to accelerate repayment of the Loans upon the occurrence of an additional Event of Default. Upon Lender’s receipt of satisfactory evidence that the Debt Service Coverage Ratio equals or exceeds 2.00 to 1.00, Lender shall continue to make further Advances so long as no other Event of Default as occurred.

Debt Service Coverage Ratio” shall mean, for each period of four most recent consecutive fiscal quarters, the quotient of (i) Cash Flow Available for Debt Service for such period to (ii) Debt Service for such period. If, during any period, the Borrower and/or any Subsidiary enters into a transaction or series of related transactions not prohibited by this Agreement (including by waiver, consent or amendment given or made in accordance with Section 12.12) pursuant to which the Borrower and/or any Subsidiary acquires or disposes of any assets with a fair market value greater than $1,000,000, the Debt Service Coverage Ratio shall be calculated on a pro forma basis after giving effect to such transaction or series of related transactions as a whole (including any related incurrence, repayment or assumption of Indebtedness), and such transaction or series of related transactions (including any related incurrence, repayment or assumption of Indebtedness) shall be deemed to have occurred as of the first day of the applicable period.

Debt Service Coverage Ratio. As of ​, and continuing on the same day and month of each year while the Loan remains outstanding (each, a “Calculation Date”), Borrower shall be obligated to have achieved and maintained a Debt Service Coverage Ratio (as defined below) of not less than 1.50 to 1.00. For the purposes hereof, the term “Debt Service Coverage Ratio” shall mean the ratio of # the Net Operating Income (as hereinafter defined) to # the aggregate amount of principal and interest payable by Borrower under the Loan for the next succeeding twelve (12) months based upon a 25-year amortization and the then current Interest Rate (as defined in the Note). For the purposes hereof, “Net Operating Income” shall mean all of the earnings derived from the operation and leasing of the Property, less ordinary expenses and less a ​ management fee and ​ replacement reserve, annualized.

Debt Service Coverage Ratio: Shall be calculated as follows: EBITDA on a rolling twelve (12) month basis divided by all principal and interest payments for like periods.

DEBT SERVICE COVERAGE RATIO. Borrower shall at all times maintain a Debt Service Coverage Ratio of not less than 2.00 to 1.00, which shall be measured on a quarterly basis as of March 31, June 30, September 30 and December 31 of each calendar year during the term of the Loan, commencing March 31, 2020, for the preceding three (3) consecutive calendar month period of time. In the event the Debt Service Coverage Ratio falls below 2.00 to 1.00 at any time, Lender will cease to make any further Advances but agrees to not accelerate repayment of the Loans pursuant to Section 8.1 so long as no other Event of Default has occurred; provided that Lender expressly reserves the right to accelerate repayment of the Loans upon the occurrence of an additional Event of Default. Upon Lender’s receipt of satisfactory evidence that the Debt Service Coverage Ratio equals or exceeds 2.00 to 1.00, Lender shall continue to make further Advances so long as no other Event of Default as occurred.

DEBT SERVICE COVERAGE RATIO. Borrower shall at all times maintain a Debt Service Coverage Ratio of not less than 2.00 to 1.00, which shall be measured on a quarterly basis as of March 31, June 30, September 30 and December 31 of each calendar year during the term of the Loan, commencing March 31, 2020, for the preceding three (3) consecutive calendar month period of time. In the event the Debt Service Coverage Ratio falls below 2.00 to 1.00 at any time, Lender will cease to make any further Advances but agrees to not accelerate repayment of the Loans pursuant to Section 8.1 so long as no other Event of Default has occurred; provided that Lender expressly reserves the right to accelerate repayment of the Loans upon the occurrence of an additional Event of Default. Upon Lender’s receipt of satisfactory evidence that the Debt Service Coverage Ratio equals or exceeds 2.00 to 1.00, Lender shall continue to make further Advances so long as no other Event of Default as occurred.

Debt Service Coverage Ratio” means, with respect to the specified period of reference, the ratio of (i) the gross cash flow paid to Borrower under the Electricity Purchase Agreement and from the sale of Renewable Energy Credits for the most recently completed Measurement Period less the total operating costs of the Facility for the most recently completed Measurement Period to (ii) the principal and interest payments made in connection with the Obligations (as defined in the First Lien Credit Agreement) for the most recently completed Measurement Period.

Debt Service Coverage Ratio” means, for any period of four fiscal quarters ending on the last day of the latest fiscal quarter ended prior to the determination date for which financial statements prepared on a consolidated basis in accordance with GAAP have been filed with the SEC (or, in the event that the Borrower shall no longer be subject to the reporting requirements of Section 13 or Section 15(d) of the Exchange Act, are available), the ratio of (a) the sum of (i) Consolidated Adjusted EBITDA for such period, minus (ii) expense for taxes paid in cash during such period, minus (iii) Restricted Payments made in cash during such period (other than payments pursuant to Section 6.08(b)(v)), minus (iv) an amount equal to seventy-five percent (75%) of aggregate capital expenditures for such period to (b) the sum of (i) Interest Fixed Charges for such period, plus (ii) amortization of payments with respect to Term Loans made under Sec. 2.10(d), amortization payments in respect of any other Indebtedness, and payments in respect of Capital Lease Obligations during such period.

Debt Service Coverage Ratio. At all times during the term of the Loan, Borrower, on a consolidated and consolidating basis, shall maintain a minimum Debt Service Coverage Ratio of not less than 1.50 to 1.00, to be tested quarterly on a rolling twelve (12) month basis within forty-five (45) days of each quarter-end and annually based within ninety (90) days of fiscal year end. The Lender will rely on audited financial statements for The LGL Group, Inc. and provide eliminations to demonstrate Borrower’s operating performance and covenant testing on an annual basis. Quarterly covenant testing will be based on internally prepared financial statements for Borrower showing eliminations between Borrower entities. For purposes hereof, “Debt Service Coverage Ratio” shall be calculated as follows: EBITDA on a rolling twelve (12) month basis divided by all principal and interest payment for like periods.

Next results

Draft better contracts
faster with AllDrafts

AllDrafts is a cloud-based editor designed specifically for contracts. With automatic formatting, a massive clause library, smart redaction, and insanely easy templates, it’s a welcome change from Word.

And AllDrafts generates clean Word and PDF files from any draft.