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Leverage Ratio Covenant Sample 1

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 a ratio of debt to consolidated net worth that a borrower must maintain.
Form Type: Contract Clauses
Practice Area: Corporate & Securities

Date: Nov 2014
PLI Item #: 129888
Keywords: "leverage ratio"; debt; "consolidated tangible net worth"; "consolidate subsidiaries"; "intangible assets"; borrower; subsidiaries; "financial covenant"; "credit agreement"; lender; "consolidated stockholders equity"
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