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Leverage Ratio Covenant Sample 2

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 ratios of consolidated senior debt of the parent and its subsidiaries to consolidated tangible net worth plus subordinated debt of the company that must be maintained.
Type: Contract Clauses
PLI Item #: 129895
Practice Area: Banking and finance, Corporate finance

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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