What are some examples of incurrence covenants? Maintenance covenants?

Incurrence Covenants:

• Company cannot take on more than $2 billion of total debt.

• Proceeds from any asset sales must be earmarked to repay debt.

• Company cannot make acquisitions of over $200 million in size.

• Company cannot spend more than $100 million on CapEx each year.

Maintenance Covenants:

• Total Debt / EBITDA cannot exceed 3.0 x

• Senior Debt / EBITDA cannot exceed 2.0 x

• (Total Cash Payable Debt + Capitalized Leases) / EBITDAR cannot exceed 4.0 x

• EBITDA / Interest Expense cannot fall below 5.0 x

• EBITDA / Cash Interest Expense cannot fall below 3.0 x

• (EBITDA – CapEx) / Interest Expense cannot fall below 2.0 x