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High-Yield Indenture Debt Covenant Sample Clauses

Book Publication Date: Nov 2014
Description: Debt and lien covenants, or negative pledges, are key to making sure a lender has priority and that the borrower does not take on more debt than they can repay. These sample clauses tie a borrower's ability to incur debt to maintaining a particular consolidated fixed charge coverage ratio.
Type: Contract Clauses
PLI Item #: 128694
Practice Area: Banking and finance, Corporate finance

Keywords: "guarantee"; "interest rate protection agreement"; "leverage ratio"; "debt covenant"; "credit agreement"; "permitted lien"; lien; "priority debt covenant"; "attributable debt"; "exempted debt"; "funded debt"; "principal property"; "restricted subsidiary"; "negative pledge"; "sale and leaseback"; issuer; borrower; lender; "consolidated net tangible assets"; "high-yield indenture"; "principal manufacturing facility"; mortgage; "subordinated debt"; "pari passu indenture"

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