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Replay
Can we approve the $3M distribution at Thursday's meeting?
Completed · 3 steps
Not as proposed. The Q3 financial package puts total leverage at 3.56x1. The credit agreement bars distributions while leverage is above 3.00x2. Approving the $3M distribution would need a lender waiver first.
Sources
1
Q3 Financial Package · p. 12
Board book · Oct 1 board meeting
2
Amended Credit Agreement · §7.4(b)
Board book · Reference materials
Ask anything ⌘K
Amended Credit Agreement · p. 41
7.4 RESTRICTED PAYMENTS
(b) The Borrower shall not declare or pay any Restricted Payment if, after giving effect thereto, the Total Leverage Ratio would exceed 3.00 to 1.00. For purposes of this Section, dividends and distributions to equity holders constitute Restricted Payments.
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