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Leverage Ratio Covenant Sample 2

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.
Form Type: Clauses
Practice Area: Corporate & Securities

Date: Nov 2014
PLI Item #: 129895
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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