| Maximum Incremental Facility – Free and Clear Basket · Incurrence | Greater of $700mm or 100% of EBITDA (free and clear basket for incremental facilities and incremental equivalent debt) | loose 100% vs basket median 20% (n=122) | source ↗ |
| Incurrence Test – Junior Secured Indebtedness · Incurrence | Consolidated Secured Leverage Ratio no more than 3.75:1.00 (or ratio as of last Test Period end for acquisitions) | market 3.75x vs incurrence median 3.875x (n=12) | source ↗ |
| Incurrence Test – First Lien Secured Indebtedness · Incurrence | Consolidated First Lien Leverage Ratio no more than 3.00:1.00 (or, for acquisition-related debt, ratio as of last Test Period end) | tight 3x vs incurrence median 3.875x (n=12) | source ↗ |
| Incurrence Test – Unsecured Indebtedness · Incurrence | Consolidated Leverage Ratio no more than 6.00:1.00 OR Consolidated Fixed Charge Coverage Ratio at least 2.00:1.00 | loose 6x vs incurrence median 3.875x (n=12) | source ↗ |
| Limitation on Liens · Negative Covenant | No Liens except Permitted Liens | | source ↗ |
| Limitation on Fundamental Changes · Negative Covenant | No mergers, consolidations or disposals of all or substantially all assets unless surviving entity assumes obligations and other conditions are met | | source ↗ |
| Limitation on Business Activities · Negative Covenant | Borrower and Restricted Subsidiaries may only engage in Similar Businesses | | source ↗ |
| Limitation on Restricted Payments · Negative Covenant | No Restricted Payments if Default exists, Borrower cannot incur $1.00 additional debt under Section 6.01(a), or aggregate Restricted Payments exceed permitted basket (subject to various exceptions) | tight $1 vs basket median $300m (n=49) | source ↗ |
| Commitment Fee · Fee | 0.175% to 0.300% per annum on unused Revolving Credit Commitments based on Consolidated Leverage Ratio | market 0.175% vs fee median 0.25% (n=19) | source ↗ |
| Financial Covenant Leverage Ratio · Financial Maintenance | Maximum 3.25:1.00 as of end of any fiscal quarter | tight 3.25x vs leverage median 4x (n=99) | source ↗ |
| Debt Incurrence Sweep · Mandatory Prepayment | 100% of Net Cash Proceeds from non-permitted Indebtedness issuances applied to prepay Term Loans within 10 Business Days | market 100% vs mandatory prepayment median 100% (n=26) | source ↗ |
| MFN Protection · Pricing | Interest rate margin on MFN Indebtedness (pari passu incremental term loans meeting specified criteria) may not exceed margin on Initial Term Loans by more than 0.50% per annum unless Initial Term Loan margin is adjusted accordingly; applies to loans incurred within 180 days of Closing Date | tight 0.5% vs pricing median 1.375% (n=38) | source ↗ |
