“The credit agreement contains various financial and operating covenants, which, among other things, require the maintenance of certain financial ratios, place limitations on distributions to stockholders and restrict the Company’s ability to borrow funds from other sources. In July 1999, the Company obtained a waiver which, among other things, raised the existing limitations on stockholder distributions.”
(World Wrestling Federation Entertainment, Inc. 2000 Annual Report)
“Each bank’s obligation to make loans under the Credit Facility is subject to, among other things, compliance by the Corporation with various representations, warranties, and covenants, including, but not limited to, covenants limiting the ability of the Corporation and certain of its subsidiaries to encumber their assets and a covenant not to exceed a maximum leverage ratio. Certain of the Corporation’s other financing agreements contain restrictive covenants relating to debt, limitations on encumbrances and sale and leaseback transactions, and provisions which relate to certain changes in control.”
(Lockheed Martin Corporation 2000 Annual Report)
“The covenant restrictions for the Syndicated Facility and Credit Facility include, among others, interest coverage and debt capitalization ratios, limitations on dividends, additional indebtedness and liens. Under the terms of the Syndicated Facility and the Credit Facility, the Company is obligated to repay the borrowings under the facilities with the cash proceeds from the strategic plan divestitures. The Company was required to use all of the first $1,500 million of net proceeds from the divestitures to repay indebtedness, which it has done. Additionally, the Company is required to use 50% of the additional cash proceeds greater than $1,500 million and up to $2,500 million from divestitures to repay the indebtedness under the Syndicated and Credit Facilities.”
(Waste Management, Inc. 2000 Annual Report)
“The May 15, 2000 refinancing agreements require the Company to maintain a minimum EBITDA on a quarterly basis, a minimum fixed charge coverage amount on a quarterly basis, and a positive quarterly EBITDA (beginning with the quarter ending September 30, 2000) at the Cleveland SBQ facility. In addition, quarterly dividend and all other restricted payments, as defined, are limited to the lesser of $750,000 or 50% of income from continuing operations.”
(Birmingham Steel Corporation, 2000 Annual Report)
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