� Minimum Fixed Charge Coverage Ratio: The ratio of Consolidated EBITDA (as defined in the Credit Agreement) to Consolidated Fixed Charges (as defined in the Credit Agreement), may not be less than 1.50:1.00 (a) for the period consisting of one fiscal quarter ending March 31, 2014, (b) for the period consisting of two consecutive fiscal quarters ending June 30, 2014, (c) for the period consisting of three consecutive fiscal quarters ending September 30, 2014 and (b) for each period consisting of four consecutive fiscal quarters ending thereafter.
EBITDA was a factor in underwriting (obviously)
one and one half to one EBITDA vs fixed charges (I was in commercial banking for 12 years, we always required 1.25 to 1)
AKA debt service ratio cannot be lower than 1.5 to 1
60% max leverage
if they do a 100 million worth of deals, GPT's gotta put 40 million in it
with a minimum liquidity of 10 mil also a covenant
with 53 mil on the balance in free cash
this 100 million used up taps GPT out
EARNINGS (EBITDA) have to start ramping up here or GPT will be outta cash and outta time and out of credit
I see this as good news since Deutsche Bank lent GPT the $100 million+ obviously after reviewing GPT's finances. They must have been at least a little bit reassured that they weren't making a bad loan. The ratio at 1.50:1.00 also probably means that GPT is already above that ratio. It seems that GPT will be profitable in Q3 and they really don't have to make any more deals unless it's a highly profitable one. Pay back the Preferred accrued and pay a 1 cent per share common dividend in order to keep REIT status.