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Excess Cash Flow Covenant Sample 5

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 requires the borrower to repay working capital loans out of excess cash flow.
Type: Contract Clauses
PLI Item #: 129974
Practice Area: Banking and finance, Corporate finance

Keywords: "working capital loans"; investments; "excess cash flow"; "mandatory incremental prepayments"; "consolidated cash flow"; "consolidated subsidiaries"; "consolidated net income"; "fiscal year"; "closing date"; "financial covenant"; "coverage tests"; "total debt service"

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