Debt Service definition: Copy, customize, and use instantly
Introduction
The term "Debt Service" refers to the amount of money required to cover the repayment of interest and principal on outstanding debt. This includes any scheduled payments of interest and principal towards loans or bonds. Debt Service is critical in determining a company's ability to meet its financial obligations and is often used to assess its financial health.
Below are various examples of how "Debt Service" can be defined in different contexts. Copy the one that fits your needs, customize it, and use it in your contract.
Definition of "Debt Service" as a payment requirement
This definition ties "Debt Service" to its role as a payment obligation.
"Debt Service" means the total amount of payments required by a borrower to cover interest and principal payments on outstanding debt during a specific period.
Definition of "Debt Service" in loan agreements
This definition connects "Debt Service" to loan repayments.
"Debt Service" refers to the periodic payments of interest and principal owed under a loan agreement.
Definition of "Debt Service" in bond terms
This definition links "Debt Service" to the repayment of bonds.
"Debt Service" means the sum of principal and interest payments due on the bonds issued by the issuer during a given period.
Definition of "Debt Service" for a company’s financial obligations
This definition applies "Debt Service" to a company’s financial planning.
"Debt Service" refers to the total obligation a company must meet each period to satisfy its debt commitments, including both principal and interest payments.
Definition of "Debt Service" as part of a budget
This definition ties "Debt Service" to budget planning.
"Debt Service" means the portion of a company or government’s budget allocated for paying off outstanding debts, including both interest and principal.
Definition of "Debt Service" in the context of a loan covenant
This definition connects "Debt Service" to a loan covenant.
"Debt Service" refers to the required minimum payment amount stipulated in the loan agreement that must be paid to satisfy interest and principal obligations.
Definition of "Debt Service" for cash flow analysis
This definition applies "Debt Service" to cash flow evaluation.
"Debt Service" means the amount of cash a business or government must generate in order to meet its debt obligations, including interest and principal payments.
Definition of "Debt Service" in corporate finance
This definition ties "Debt Service" to corporate financial strategy.
"Debt Service" refers to the periodic cash outflows a company must make to service its outstanding debts, covering both interest and principal portions.
Definition of "Debt Service" in bankruptcy proceedings
This definition connects "Debt Service" to bankruptcy situations.
"Debt Service" means the scheduled payments that must be made to creditors, encompassing both principal and interest, prior to any bankruptcy filings or proceedings.
Definition of "Debt Service" in real estate financing
This definition links "Debt Service" to real estate financing.
"Debt Service" refers to the payments made on loans taken to finance real estate, including both the interest and principal components.
Definition of "Debt Service" in sovereign debt management
This definition ties "Debt Service" to the management of national debt.
"Debt Service" refers to the total payments made by a sovereign entity to meet its external and internal debt obligations, including both interest and principal.
Definition of "Debt Service" for evaluating creditworthiness
This definition connects "Debt Service" to assessing an entity's credit.
"Debt Service" means the amount of funds required to cover debt repayments, and is a key factor in determining the creditworthiness of a borrower or issuer.
Definition of "Debt Service" in international finance
This definition links "Debt Service" to global financial obligations.
"Debt Service" refers to the sum of interest and principal payments made by a government or company to meet its international debt obligations.
Definition of "Debt Service" in terms of debt ratios
This definition connects "Debt Service" to financial ratios.
"Debt Service" means the total debt obligations of a business or government, and is used to calculate key financial ratios such as the Debt Service coverage ratio.
Definition of "Debt Service" for interest and principal payments
This definition applies "Debt Service" to general loan repayment terms.
"Debt Service" refers to the total sum required for both the interest and principal repayments on any outstanding loans, bonds, or other debt instruments.
Definition of "Debt Service" in project financing
This definition ties "Debt Service" to project finance.
"Debt Service" means the cash required to cover the repayment of loans issued for a specific project, including interest and principal payments.
Definition of "Debt Service" in tax and fiscal policy
This definition links "Debt Service" to government fiscal policy.
"Debt Service" refers to the amount of government revenue allocated to pay off interest and principal on public debt, impacting fiscal policy decisions.
Definition of "Debt Service" in investment risk assessment
This definition applies "Debt Service" to investment analysis.
"Debt Service" refers to the level of payments an entity must make on its debt, and is used in evaluating the risk of investing in bonds or debt instruments issued by the entity.
Definition of "Debt Service" for equity investors
This definition connects "Debt Service" to equity investment considerations.
"Debt Service" means the required debt payments made by a company to its creditors, which impacts the availability of funds for distribution to equity investors.
Definition of "Debt Service" in an amortization schedule
This definition ties "Debt Service" to amortization.
"Debt Service" refers to the scheduled amount that includes both interest and principal payments on a loan, as outlined in the amortization schedule.
Definition of "Debt Service" in governmental financial reports
This definition links "Debt Service" to public sector finance.
"Debt Service" refers to the total amount of payments made by a government entity to meet its outstanding debt obligations, as reported in the financial statements.
Definition of "Debt Service" in the context of credit facilities
This definition connects "Debt Service" to credit facility terms.
"Debt Service" refers to the amount a borrower must pay on a credit facility, covering both the interest and the principal portion of the loan.
Definition of "Debt Service" for capital-intensive industries
This definition ties "Debt Service" to industries requiring large capital expenditures.
"Debt Service" means the amount a business in a capital-intensive industry must allocate to repay debt obligations, such as loans taken for infrastructure or equipment.
Definition of "Debt Service" in the context of equity financing
This definition links "Debt Service" to equity and debt relationships.
"Debt Service" refers to the obligations that a company must meet to service its outstanding debt, which affects the company's overall equity value.
Definition of "Debt Service" for short-term borrowings
This definition applies "Debt Service" to short-term loans.
"Debt Service" refers to the payment required for short-term borrowings, typically covering interest and principal that must be paid within a short time frame.
Definition of "Debt Service" for long-term loans
This definition connects "Debt Service" to long-term debt arrangements.
"Debt Service" means the periodic payments that cover both the interest and principal on long-term loans, often spread over an extended period.
Definition of "Debt Service" in refinancing arrangements
This definition ties "Debt Service" to loan refinancing.
"Debt Service" refers to the obligations a borrower must meet on refinanced debt, including payments for both principal and interest on the new terms.
Definition of "Debt Service" for debt restructuring
This definition connects "Debt Service" to debt restructuring.
"Debt Service" refers to the repayment terms for debt that has been restructured, covering both the restructured principal and the associated interest.
Definition of "Debt Service" in debt servicing costs
This definition applies "Debt Service" to servicing costs.
"Debt Service" means the total cost of servicing debt, including both interest and principal payments, as calculated by a company or government entity.
Definition of "Debt Service" for real estate investors
This definition links "Debt Service" to real estate investments.
"Debt Service" refers to the total payments made by a real estate investor to cover the debt obligations tied to their properties, including interest and principal.
Definition of "Debt Service" for financial distress scenarios
This definition connects "Debt Service" to financial distress.
"Debt Service" means the total amount of funds a company or government must allocate to debt repayment, which may be impacted during periods of financial distress.
Definition of "Debt Service" for forecasting and planning
This definition ties "Debt Service" to business forecasting.
"Debt Service" refers to the future obligations a company must account for when planning its financial strategy, covering both principal and interest payments on debt.
Definition of "Debt Service" in financial covenants
This definition connects "Debt Service" to covenants in loan agreements.
"Debt Service" means the required payments that must be made in compliance with the financial covenants set forth in a loan agreement.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.