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EBITDA to Interest Coverage Covenant Sample Clause

Book Publication Date: Nov 2014
Description: Coverage tests are financial covenants that relate to a company's ability to service its debt out of income or cash flow. This sample clause provides EBITDA to interest coverage ratios a borrower must maintain, as well as sample definitions of key terms.
Type: Contract Clauses
PLI Item #: 129765
Practice Area: Accounting and financial reporting, Banking and finance, Corporate agreements, Corporate contracts, Corporate finance, Corporate law, Cost accounting, Deal structuring, Earnings before interest, taxes, depreciation, and amortization, Mergers and acquisitions

Keywords: "EBITDA"; "earnings before interest taxes deductions and amortization"; "EBITDA to interest"; "coverage test"; "consolidated cash flow"; "consolidated net income"; "interest coverage ratio"; affiliates; "consolidated subsidiaries"; covenant

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