Maximum Leverage Ratio 3.75 to 1.00; provided that (i) for the two consecutive fiscal quarters ended immediately following the consummation of any Qualified Acquisition (including the fiscal quarter in which such Qualified Acquisition occurs), the Maximum Leverage Ratio shall be 4.75 to 1.00, (ii) for the fiscal quarter ended immediately after such two fiscal quarters referred to in clause (i), the Maximum Leverage Ratio shall be 4.50 to 1.00, (iii) for the fiscal quarter ended immediately after the fiscal quarter referred to in clause (ii), the Maximum Leverage Ratio shall be 4.25 to 1.00, (iv) for the fiscal quarter ended immediately after the fiscal quarter referred to in clause (iii), the Maximum Leverage Ratio shall be 4.00 to 1.00 (and, for the avoidance of doubt, for each fiscal quarter ended after the fiscal quarter referred to in clause (iv), the Maximum Leverage Ratio shall be 3.75 to 1.00).
Net Leverage Ratio means, with respect to any Test Period, the ratio of (a) Consolidated Net Debt as of the last day of such Test Period to (b) Consolidated EBITDA of the Borrower for such Test Period.
Cash Flow Leverage Ratio means, as of any time the same is to be determined, the ratio of (a) Funded Debt as of the last day of the most recent four fiscal quarters of the Company then ended minus Excess Cash as of the last day of the same such period to (b) EBITDA for the same most recent four fiscal quarters then ended.
Total Leverage Ratio means, with respect to any Test Period, the ratio of (a) Consolidated Total Debt as of the last day of such Test Period to (b) Consolidated EBITDA for such Test Period.
Adjusted Leverage Ratio means, as of any date, the ratio of (a) the Total Seasonally Adjusted Debt as of such date to (b) the Total Adjusted Capitalization as of such date.
Effective Leverage Ratio has the meaning set forth in the Statement.
Total Net Leverage Ratio means, with respect to any Test Period, the ratio of (a) Consolidated Total Indebtedness net of Unrestricted Cash as of the last day of such Test Period to (b) Consolidated EBITDA for such Test Period.
Senior Leverage Ratio means, on any date, the ratio of (a) Senior Indebtedness as of such date to (b) Consolidated EBITDA for the period of four consecutive fiscal quarters of the Parent Borrower ended on such date (or, if such date is not the last day of a fiscal quarter, ended on the last day of the fiscal quarter of the Parent Borrower most recently ended prior to such date for which financial statements are available).
Secured Net Leverage Ratio means, with respect to any Test Period, the ratio of (a) Consolidated Secured Net Indebtedness as of the last day of such Test Period to (b) Consolidated EBITDA for such Test Period.
Leverage Ratio means, on any date, the ratio of (a) Consolidated Indebtedness as of such date to (b) Adjusted EBITDA for the period of four consecutive fiscal quarters of the Company ended on such date (or, if such date is not the last day of a fiscal quarter, ended on the last day of the fiscal quarter of the Company most recently ended prior to such date).
First Lien Leverage Ratio means the ratio, as of any date of determination, of (a) Consolidated First Lien Debt as of the last day of the Test Period then most recently ended to (b) Consolidated Adjusted EBITDA for the Test Period then most recently ended, in each case of the Administrative Borrower and its Restricted Subsidiaries on a consolidated basis.
First Lien Net Leverage Ratio means, with respect to any Test Period, the ratio of (a) Consolidated First Lien Net Indebtedness as of the last day of such Test Period to (b) Consolidated EBITDA for such Test Period.
Consolidated Leverage Ratio means, as of any date of determination, the ratio of (a) Consolidated Funded Indebtedness as of such date to (b) Consolidated EBITDA for the period of the four fiscal quarters most recently ended.
Consolidated Net Leverage Ratio means, as of any date of determination, the ratio of (x) Consolidated Net Leverage at such date to (y) the aggregate amount of L2QA Pro Forma EBITDA; provided, however, that the pro forma calculation of the Consolidated Net Leverage Ratio shall not give effect to (i) any Indebtedness incurred on the date of determination pursuant to Section 4.04(b) or (ii) the discharge on the date of determination of any Indebtedness to the extent that such discharge results from the proceeds incurred pursuant to Section 4.04(b). For the avoidance of doubt, in determining Consolidated Net Leverage Ratio, no cash or Cash Equivalents shall be included that are the proceeds of Indebtedness in respect of which the calculation of the Consolidated Net Leverage Ratio is to be made.
Unencumbered Leverage Ratio means, as of any date of determination, the quotient (expressed as a percentage) of (a) Unsecured Indebtedness of Parent and its Subsidiaries, divided by (b) Unencumbered Asset Value.
Consolidated Total Leverage Ratio means, as of any date of determination, the ratio of (a) Consolidated Total Indebtedness on such date to (b) Consolidated EBITDA for the period of four (4) consecutive fiscal quarters ending on or immediately prior to such date.
Secured Leverage Ratio means, with respect to any Test Period, the ratio of (a) Consolidated Secured Debt as of the last day of such Test Period to (b) Consolidated EBITDA for such Test Period.
Consolidated Senior Leverage Ratio as at the last day of any period, the ratio of (a) Consolidated Senior Debt on such day to (b) Consolidated EBITDA for such period.
Consolidated Total Net Leverage Ratio means, with respect to any Test Period, the ratio of (a) Consolidated Total Net Debt as of the last day of such Test Period to (b) Consolidated EBITDA for such Test Period.
Consolidated First Lien Leverage Ratio as of any date of determination, the ratio of (x) Consolidated First Lien Indebtedness as at such date (after giving effect to any Incurrence or Discharge of Indebtedness on such date) to (y) the aggregate amount of Consolidated EBITDA for the period of the most recent four consecutive fiscal quarters ending prior to the date of such determination for which consolidated financial statements of the Borrower are available, provided that:
Coverage Ratio means, as of any interest payment date on which a 90-Day LIBOR Rate is to be determined, 100% multiplied by a fraction, the numerator of which is the aggregate spread between exercise prices and closing market prices (as quoted on the principal stock exchange for a particular security) as of the date for which the Coverage Ratio is determined for all of the Borrower's Stock Options and the denominator of which is the unpaid principal balance and interest due but unpaid, as of the close of business on any interest payment
Consolidated First Lien Net Leverage Ratio means, with respect to any Test Period, the ratio of (a) Consolidated First Lien Net Debt as of the last day of such Test Period to (b) Consolidated EBITDA for such Test Period.
Consolidated Secured Net Leverage Ratio means, with respect to any Test Period, the ratio of (a) Consolidated Secured Net Debt as of the last day of such Test Period to (b) Consolidated EBITDA for such Test Period.
Secured Indebtedness Leverage Ratio means, with respect to any Person at any date, the ratio of (i) an amount equal to (a) the amount of Secured Indebtedness (other than Secured Indebtedness incurred pursuant to clause (i)(y) of Section 4.03(b)) of such Person and its Restricted Subsidiaries as of such date of calculation (determined on a consolidated basis in accordance with GAAP) that constitutes First Priority Lien Obligations minus (b) the amount of cash and Cash Equivalents of such Person and its Restricted Subsidiaries as of such date to (ii) EBITDA of such Person for the four full fiscal quarters for which internal financial statements are available immediately preceding such date on which such additional Indebtedness is Incurred. In the event that the Issuer or any of its Restricted Subsidiaries Incurs, repays, repurchases or redeems any Indebtedness subsequent to the commencement of the period for which the Secured Indebtedness Leverage Ratio is being calculated but prior to the event for which the calculation of the Secured Indebtedness Leverage Ratio is made (the “Secured Leverage Calculation Date”), then the Secured Indebtedness Leverage Ratio shall be calculated giving pro forma effect to such Incurrence, repayment, repurchase or redemption of Indebtedness as if the same had occurred at the beginning of the applicable four-quarter period; provided that the Issuer may elect, pursuant to an Officers’ Certificate delivered to the Trustee to treat all or any portion of the commitment under any Indebtedness as being Incurred at such time, in which case any subsequent Incurrence of Indebtedness under such commitment shall not be deemed, for purposes of this calculation, to be an Incurrence at such subsequent time.
Interest Coverage Ratio means, for any period, the ratio of (a) Consolidated EBITDA for such period to (b) Consolidated Interest Expense for such period.
EBITDA Coverage Ratio defined as EBITDA divided by the aggregate of total interest expense plus the prior period current maturity of long-term debt and the prior period current maturity of subordinated debt.
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Now, let's delve into the concepts mentioned in the provided article:
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Maximum Leverage Ratio:
- The maximum leverage ratio is specified as a certain ratio to 1.00, with variations based on different fiscal quarters and Qualified Acquisitions. The ratios change over consecutive fiscal quarters following a Qualified Acquisition.
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Net Leverage Ratio:
- Net Leverage Ratio is the ratio of Consolidated Net Debt to Consolidated EBITDA for a specific test period.
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Cash Flow Leverage Ratio:
- Cash Flow Leverage Ratio is the ratio of Funded Debt minus Excess Cash to EBITDA for the most recent four fiscal quarters.
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Total Leverage Ratio:
- Total Leverage Ratio is the ratio of Consolidated Total Debt to Consolidated EBITDA for a specific test period.
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Adjusted Leverage Ratio:
- Adjusted Leverage Ratio is the ratio of Total Seasonally Adjusted Debt to Total Adjusted Capitalization.
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Effective Leverage Ratio:
- The Effective Leverage Ratio is referred to but not explicitly defined in the provided text. The definition is likely available in the accompanying documentation or agreement.
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Total Net Leverage Ratio:
- Total Net Leverage Ratio is the ratio of Consolidated Total Indebtedness net of Unrestricted Cash to Consolidated EBITDA for a specific test period.
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Senior Leverage Ratio:
- Senior Leverage Ratio is the ratio of Senior Indebtedness to Consolidated EBITDA over a four consecutive fiscal quarters period.
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Secured Net Leverage Ratio:
- Secured Net Leverage Ratio is the ratio of Consolidated Secured Net Indebtedness to Consolidated EBITDA for a specific test period.
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Leverage Ratio:
- Leverage Ratio is the ratio of Consolidated Indebtedness to Adjusted EBITDA over a four consecutive fiscal quarters period.
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First Lien Leverage Ratio:
- First Lien Leverage Ratio is the ratio of Consolidated First Lien Debt to Consolidated Adjusted EBITDA for the most recent test period.
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Consolidated Leverage Ratio:
- Consolidated Leverage Ratio is the ratio of Consolidated Funded Indebtedness to Consolidated EBITDA for the most recent four fiscal quarters.
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Consolidated Net Leverage Ratio:
- Consolidated Net Leverage Ratio involves the ratio of Consolidated Net Leverage to the aggregate amount of L2QA Pro Forma EBITDA.
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Unencumbered Leverage Ratio:
- Unencumbered Leverage Ratio is the ratio of Unsecured Indebtedness to Unencumbered Asset Value.
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Consolidated Total Leverage Ratio:
- Consolidated Total Leverage Ratio is the ratio of Consolidated Total Indebtedness to Consolidated EBITDA for a period of four consecutive fiscal quarters.
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Secured Leverage Ratio:
- Secured Leverage Ratio is the ratio of Consolidated Secured Debt to Consolidated EBITDA for a specific test period.
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Consolidated Senior Leverage Ratio:
- Consolidated Senior Leverage Ratio is the ratio of Consolidated Senior Debt to Consolidated EBITDA for a specified period.
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Consolidated Total Net Leverage Ratio:
- Consolidated Total Net Leverage Ratio is the ratio of Consolidated Total Net Debt to Consolidated EBITDA for a specific test period.
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Consolidated First Lien Leverage Ratio:
- Consolidated First Lien Leverage Ratio is the ratio of Consolidated First Lien Indebtedness to the aggregate amount of Consolidated EBITDA for the most recent four consecutive fiscal quarters.
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Coverage Ratio:
- Coverage Ratio involves a fraction related to exercise prices and closing market prices for Borrower's Stock Options.
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Consolidated First Lien Net Leverage Ratio:
- Consolidated First Lien Net Leverage Ratio is the ratio of Consolidated First Lien Net Debt to Consolidated EBITDA for a specific test period.
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Consolidated Secured Net Leverage Ratio:
- Consolidated Secured Net Leverage Ratio is the ratio of Consolidated Secured Net Debt to Consolidated EBITDA for a specific test period.
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Secured Indebtedness Leverage Ratio:
- Secured Indebtedness Leverage Ratio is the ratio of Secured Indebtedness (excluding certain types) to EBITDA for the four full fiscal quarters immediately preceding the calculation date.
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Interest Coverage Ratio:
- Interest Coverage Ratio is the ratio of Consolidated EBITDA to Consolidated Interest Expense for a specific period.
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EBITDA Coverage Ratio:
- EBITDA Coverage Ratio is defined as EBITDA divided by the sum of total interest expense, prior period current maturity of long-term debt, and the prior period current maturity of subordinated debt.
Understanding these ratios is crucial for assessing a company's financial health, risk management, and compliance with financial covenants. Each ratio provides valuable insights into different aspects of a company's leverage and financial structure.
