The amendment also extends to September 16, 2019 the period during which the Corporation is not required to comply with a minimum tangible net worth
covenant of $225 million.
This facility amending agreement contains additional revisions, including the release of Tenke Holdings Ltd as a guarantor, deleting the total debt to tangible net worth
ratio covenant and increased permitted indebtedness and liens allowances.
The facility includes financial covenants that require the Company to maintain a minimum level of tangible net worth
, a minimum level of liquidity and a leverage ratio below a maximum level.
Similarly, Jim Watrous, Regions Bank's wealth-management chief for Sarasota, Naples and the rest of Florida's west coast, observes, "For the lifestyles we have in this area, $4 million or $5 million in tangible net worth
, by and large, is sufficient to be considered wealthy."
The franchisee, including any affiliated entities, must have a tangible net worth
of less than $15 million and after-tax profits, averaged over two years, of less than $5 million.
The transaction consideration is equal to 125% of tangible net worth
and thus brings a core deposit premium of about 3%.
"You need $5 [million] to $15 million in tangible net worth
to exist as an independent mortgage banker," he estimates.
2) The firm must have tangible net worth
of at least S10 million.
Moreover, Honda Motors will ensure that the subsidiary retains a tangible net worth
of at least JPY 10 million and that it has the necessary liquidity to pay off borrowings, the agency added.
Rating stability is also conditioned upon OHSB reducing its debt and/or increasing its equity base in order to reach a ratio of total debt to tangible net worth
not exceeding 2.0x (currently 2.5x) by 2012.
Its tangible net worth
nearly doubled from Rs 297.82 crore in 2008- 09 crore to Rs 575.88 crore last fiscal, the regulator wrote in the letter.
Relaxing financial covenants written into the loan, such as covenants regarding tangible net worth
or coverage ratios, will allow a company more flexibility in dealing with its financial issues.