The amendment provides for the permanent removal of the consolidated total debt to consolidate tangible net worth
ratio, corporate leverage ratio, and interest coverage ratio financial covenants.
In conjunction with the extension of the termination date, Barrick proposed, and its lenders agreed, to replace the financial covenant that required Barrick to maintain a minimum consolidated tangible net worth
(CTNW) of at least $3 billion (as of September 30, 2015, Barricks CTNW was $6 billion) with a new financial covenant that better reflects Barricks 2015 deleveraging measures and future expected debt reduction.
Finally, the amended agreement's initial term will now expire in March 2019, but this may be extended for one year subject to satisfaction of certain customary conditions; the agreement has more favourable financial covenants such as the leverage ratio and minimum tangible net worth
requirement; and has additional financial covenants as normally found in similar facilities, including a consolidated secured debt ratio, an unsecured leverage ratio and an unsecured debt service coverage ratio.
The transaction consideration is equal to 125% of tangible net worth
and thus brings a core deposit premium of about 3%.
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.
60 crore in 2004- 05, while its tangible net worth
increased by more than double from Rs 456.
Two more ratios are key: net fixed assets divided by tangible net worth
, and total liabilities divided by tangible net worth
Lundin Mining Corporation (TSX: LUN)(NYSE: LMC)(OMX: LUMI), a Canada-based company that explores for mineral resources like base metals and zinc, has announced that a lending syndicate has extended a waiver for non-compliance with the tangible net worth
covenant (the waiver).
Tangible net worth
cannot fall below $400 million at any quarter end, and cannot fall by more than 20 per cent in any one quarter or more than 40 per cent in any four quarter period;
Take action to get your agency's financial condition in order by focusing on profitability, liquidity and tangible net worth
Monthly loan covenant calculations (debt to tangible net worth
and current ratio calculations)
It noted that the agreement between Takeda and TAH states that Takeda will maintain 100% ownership of its subsidiary and will assist it in maintaining a minimum tangible net worth