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Interest Coverage Test

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Interest coverage test
A debt limitation that prohibits the issuance of additional long-term debt if the issuer's interest coverage would, as a result of the issue, fall below some specified minimum.

Interest Coverage Test
A rule that some companies have forbidding them from issuing more long-term debt securities if doing so would drive their interest coverage ratio below some, defined ratio. See also: Debt limitation.


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The credit facility has no ratings triggers or other restrictive covenants, such as leverage or interest coverage tests.
The overcollateralization and interest coverage tests have all remained relatively stable since the time of the last review.
All overcollateralization and interest coverage tests are passing the covenants.
 
 
 
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