Contract definitions library

Excess Cash Flow definition: Copy, customize, and use instantly

Introduction

The term "Excess Cash Flow" refers to the surplus cash generated by a company during a specific period after accounting for all operating expenses, taxes, capital expenditures, debt service payments, and other financial obligations. It is essential in financial agreements to determine how surplus cash is allocated, often toward reinvestments, debt repayment, or distributions to stakeholders.

Below are various examples of how "Excess Cash Flow" can be defined in different contexts. Copy the one that fits your needs, customize it, and use it in your contract.

Definition of "Excess Cash Flow" as tied to debt prepayment obligations

This definition ties "Excess Cash Flow" to loan agreements.

"Excess Cash Flow" means the net cash generated during a fiscal period after deducting operating expenses, taxes, capital expenditures, and scheduled debt service payments, which must be applied to prepay outstanding debt under the terms of the agreement.

Definition of "Excess Cash Flow" as relevant to reinvestment strategies

This definition connects "Excess Cash Flow" to growth initiatives.

"Excess Cash Flow" refers to the remaining cash after all operating, capital, and financial obligations are met, which may be reinvested in the business for expansion or innovation.

Definition of "Excess Cash Flow" as applicable to equity distributions

This definition links "Excess Cash Flow" to shareholder returns.

"Excess Cash Flow" means the cash surplus generated during a fiscal period that exceeds financial and operational needs, which may be distributed to shareholders as dividends or buybacks.

Definition of "Excess Cash Flow" as determined by financial covenants

This definition applies "Excess Cash Flow" to compliance requirements.

"Excess Cash Flow" refers to the cash generated by the company that exceeds the thresholds set in financial covenants, often required to be used for specific purposes like debt repayment or reserve funding.

Definition of "Excess Cash Flow" as tied to mezzanine financing repayments

This definition ties "Excess Cash Flow" to subordinated debt.

"Excess Cash Flow" means the cash available after servicing senior debt, which is allocated to interest or principal repayments for mezzanine financing according to the loan terms.

Definition of "Excess Cash Flow" as aligned with private equity agreements

This definition connects "Excess Cash Flow" to investment structures.

"Excess Cash Flow" refers to the cash generated by a portfolio company that surpasses its operational and debt obligations, which may be distributed to private equity investors or retained for growth.

Definition of "Excess Cash Flow" as relevant to dividend recapitalizations

This definition links "Excess Cash Flow" to leveraged financing.

"Excess Cash Flow" means the surplus cash generated during a specified period, which is used to support dividend recapitalizations or other shareholder-focused financial strategies.

Definition of "Excess Cash Flow" as tied to cash sweeps

This definition applies "Excess Cash Flow" to mandatory allocations.

"Excess Cash Flow" refers to the cash surplus subject to cash sweep provisions, requiring it to be used for early debt repayment or reserve account funding.

Definition of "Excess Cash Flow" as governed by working capital policies

This definition ties "Excess Cash Flow" to operational liquidity.

"Excess Cash Flow" means the cash generated after fulfilling all financial and operational obligations, which remains available for allocation based on the company’s working capital policies.

Definition of "Excess Cash Flow" as applicable to asset-based lending

This definition connects "Excess Cash Flow" to secured loans.

"Excess Cash Flow" refers to the cash remaining beyond the borrowing base requirements, which may be applied to additional debt payments or reserve funding in an asset-based lending structure.

Definition of "Excess Cash Flow" as aligned with merger and acquisition financing

This definition links "Excess Cash Flow" to transactional funding.

"Excess Cash Flow" means the surplus cash generated after meeting all obligations, which may be allocated toward repayment of acquisition-related financing or reinvestment in post-transaction integration.

Definition of "Excess Cash Flow" as determined by corporate governance policies

This definition applies "Excess Cash Flow" to internal guidelines.

"Excess Cash Flow" refers to the surplus funds generated by the company after operational and financial commitments, allocated in accordance with the board’s approved capital allocation policy.

This definition ties "Excess Cash Flow" to operational efficiency.

"Excess Cash Flow" means the cash generated from operating income that remains after deducting taxes, capital expenditures, debt obligations, and other specified costs.

Definition of "Excess Cash Flow" as applicable to investment-grade borrowers

This definition connects "Excess Cash Flow" to creditworthiness.

"Excess Cash Flow" refers to the cash available after meeting all obligations for an investment-grade borrower, which may be reinvested or applied toward reducing debt ratios.

Definition of "Excess Cash Flow" as defined in shareholder agreements

This definition links "Excess Cash Flow" to equity arrangements.

"Excess Cash Flow" means the cash identified under the terms of a shareholder agreement as surplus, available for distributions or retained earnings.

Definition of "Excess Cash Flow" as tied to performance-based thresholds

This definition applies "Excess Cash Flow" to financial metrics.

"Excess Cash Flow" refers to cash generated during a fiscal period that exceeds performance-based thresholds outlined in the agreement, triggering specific obligations or uses.

Definition of "Excess Cash Flow" as governed by partnership distributions

This definition ties "Excess Cash Flow" to shared profits.

"Excess Cash Flow" means the net cash surplus distributed to partners or co-owners after accounting for operating expenses, capital reserves, and debt service obligations.

Definition of "Excess Cash Flow" as relevant to tax-efficient allocations

This definition connects "Excess Cash Flow" to tax strategies.

"Excess Cash Flow" refers to cash generated by the company that, after covering all obligations, is allocated in a tax-efficient manner to minimize liabilities and maximize shareholder returns.

Definition of "Excess Cash Flow" as applicable to leveraged buyouts

This definition links "Excess Cash Flow" to acquisition financing.

"Excess Cash Flow" means the cash generated during a fiscal period that exceeds financial commitments, often used to pay down debt incurred during a leveraged buyout.

Definition of "Excess Cash Flow" as tied to retained earnings

This definition applies "Excess Cash Flow" to reinvestment policies.

"Excess Cash Flow" refers to surplus cash retained by the company after meeting operational and financial obligations, designated for future growth or contingencies.

Definition of "Excess Cash Flow" as determined by loan agreements

This definition ties "Excess Cash Flow" to borrowing terms.

"Excess Cash Flow" means the net cash identified under a loan agreement as surplus, which must be applied toward prepayments or specific financial goals.

Definition of "Excess Cash Flow" as linked to dividend policies

This definition connects "Excess Cash Flow" to equity payouts.

"Excess Cash Flow" refers to the cash generated by the business that, after covering all costs, is earmarked for dividends or other shareholder distributions based on the company’s policy.

Definition of "Excess Cash Flow" as applicable to strategic reserves

This definition links "Excess Cash Flow" to financial planning.

"Excess Cash Flow" means the cash surplus allocated to strategic reserves for unforeseen expenses, investments, or debt servicing as determined by organizational policies.

Definition of "Excess Cash Flow" as aligned with ESG objectives

This definition ties "Excess Cash Flow" to sustainability initiatives.

"Excess Cash Flow" refers to surplus funds generated after meeting financial obligations, which may be allocated to environmental, social, and governance (ESG) projects or goals.

Definition of "Excess Cash Flow" as arising from operational synergies

This definition connects "Excess Cash Flow" to cost savings.

"Excess Cash Flow" means the cash generated through operational efficiencies or synergies, after deducting all operational, financial, and tax obligations.

Definition of "Excess Cash Flow" as tied to debt servicing caps

This definition applies "Excess Cash Flow" to repayment limitations.

"Excess Cash Flow" refers to surplus cash generated beyond required debt servicing caps, available for discretionary use or accelerated debt repayment.

Definition of "Excess Cash Flow" as defined for cooperative agreements

This definition ties "Excess Cash Flow" to shared ventures.

"Excess Cash Flow" means the net cash surplus generated by a cooperative or joint venture, available for distribution to members or reinvestment in the collective operation.

This definition ties "Excess Cash Flow" to shared financial arrangements.

"Excess Cash Flow" means the surplus cash available after all financial and operational obligations are met, allocated according to the profit-sharing terms specified in the agreement.

Definition of "Excess Cash Flow" as applicable to growth capital funding

This definition connects "Excess Cash Flow" to reinvestment opportunities.

"Excess Cash Flow" refers to cash generated beyond immediate operational needs, available to fund growth capital initiatives or strategic expansions.

Definition of "Excess Cash Flow" as tied to credit facility covenants

This definition links "Excess Cash Flow" to loan compliance.

"Excess Cash Flow" means the net cash identified as surplus under the terms of a credit facility agreement, which must be applied toward compliance with financial covenants or prepayments.

This definition applies "Excess Cash Flow" to automatic allocations.

"Excess Cash Flow" refers to the cash surplus generated during a fiscal period, automatically redirected to debt prepayment or other designated uses under the agreement.

Definition of "Excess Cash Flow" as aligned with liquidity reserves

This definition ties "Excess Cash Flow" to financial stability.

"Excess Cash Flow" means the cash remaining after covering all obligations, which may be allocated to liquidity reserves for contingencies or future capital needs.

Definition of "Excess Cash Flow" as applicable to minority shareholder distributions

This definition connects "Excess Cash Flow" to equity arrangements.

"Excess Cash Flow" refers to cash generated beyond operational and debt needs, allocated to minority shareholders as dividends or distributions under equity agreements.

Definition of "Excess Cash Flow" as tied to infrastructure financing

This definition links "Excess Cash Flow" to large-scale projects.

"Excess Cash Flow" means the surplus cash generated by an infrastructure project after covering operating costs, debt servicing, and maintenance expenses, available for reinvestment or distributions.

Definition of "Excess Cash Flow" as calculated for operational restructurings

This definition applies "Excess Cash Flow" to organizational changes.

"Excess Cash Flow" refers to the cash generated during a fiscal period that remains after meeting obligations arising from operational restructuring or cost optimization efforts.

Definition of "Excess Cash Flow" as relevant to tax restructuring

This definition ties "Excess Cash Flow" to fiscal planning.

"Excess Cash Flow" means the cash surplus realized after all taxes, operating costs, and capital investments, optimized under tax restructuring strategies.

Definition of "Excess Cash Flow" as aligned with capital reinvestment policies

This definition connects "Excess Cash Flow" to corporate governance.

"Excess Cash Flow" refers to the surplus funds generated during a fiscal period, reinvested in accordance with the company’s approved capital allocation and reinvestment policies.

This definition links "Excess Cash Flow" to fixed-income obligations.

"Excess Cash Flow" means the net cash available after meeting operational and debt obligations, with priority given to bondholder claims under the applicable agreements.

Definition of "Excess Cash Flow" as applicable to leveraged recapitalizations

This definition applies "Excess Cash Flow" to financing strategies.

"Excess Cash Flow" refers to the cash surplus generated after all financial obligations are met, used to support leveraged recapitalizations or other capital restructuring efforts.

Definition of "Excess Cash Flow" as arising from divestitures

This definition ties "Excess Cash Flow" to asset sales.

"Excess Cash Flow" means the surplus cash generated through asset divestitures or disposals, remaining after satisfying debt obligations and transaction costs.

Definition of "Excess Cash Flow" as tied to strategic acquisitions

This definition connects "Excess Cash Flow" to business expansion.

"Excess Cash Flow" refers to cash generated beyond financial obligations, allocated toward funding strategic acquisitions or post-acquisition integrations.

Definition of "Excess Cash Flow" as aligned with ESG-focused reinvestments

This definition links "Excess Cash Flow" to sustainability goals.

"Excess Cash Flow" means the cash surplus generated after operational needs, debt payments, and taxes, allocated to initiatives aligned with environmental, social, and governance objectives.

Definition of "Excess Cash Flow" as applicable to deferred capital investments

This definition ties "Excess Cash Flow" to postponed projects.

"Excess Cash Flow" means the surplus cash generated after fulfilling all current obligations, which may be allocated to deferred capital investment projects or future expansion opportunities.

This definition connects "Excess Cash Flow" to layered financing.

"Excess Cash Flow" refers to the cash available after servicing senior debt obligations, distributed according to the waterfall structure in multi-tiered debt agreements.

Definition of "Excess Cash Flow" as tied to operational synergies in mergers

This definition links "Excess Cash Flow" to integration efficiencies.

"Excess Cash Flow" means the surplus cash realized from operational synergies, cost savings, or revenue enhancements following a merger or acquisition.

Definition of "Excess Cash Flow" as arising from cost-reduction initiatives

This definition applies "Excess Cash Flow" to efficiency programs.

"Excess Cash Flow" refers to the cash generated due to reduced operational or capital expenditures through efficiency improvements or strategic cost-reduction initiatives.

Definition of "Excess Cash Flow" as applicable to securitization structures

This definition ties "Excess Cash Flow" to asset-backed financing.

"Excess Cash Flow" means the surplus cash remaining after servicing obligations in securitization structures, such as mortgage-backed or asset-backed securities.

Definition of "Excess Cash Flow" as determined by dividend restrictions

This definition connects "Excess Cash Flow" to contractual limits.

"Excess Cash Flow" refers to the surplus cash generated, subject to limitations on distributions to shareholders imposed by debt agreements or financial covenants.

Definition of "Excess Cash Flow" as aligned with deferred revenue recognition

This definition links "Excess Cash Flow" to revenue adjustments.

"Excess Cash Flow" means the surplus cash derived from recognized revenues, net of deferred revenue adjustments, and after fulfilling all associated financial obligations.

Definition of "Excess Cash Flow" as tied to private credit facilities

This definition applies "Excess Cash Flow" to alternative lending.

"Excess Cash Flow" refers to the cash generated by a borrower, exceeding operational and debt obligations, and allocated based on terms specified in private credit facility agreements.

Definition of "Excess Cash Flow" as arising from surplus production capacity

This definition ties "Excess Cash Flow" to operational scalability.

"Excess Cash Flow" means the surplus cash generated due to higher production efficiency or scalability beyond projected operational capacity, after meeting all expenses and obligations.

Definition of "Excess Cash Flow" as tied to non-operating income

This definition connects "Excess Cash Flow" to ancillary revenue.

"Excess Cash Flow" refers to cash derived from non-operating income sources, such as asset sales or interest income, that remains after deducting financial obligations.

Definition of "Excess Cash Flow" as governed by nonprofit organization policies

This definition links "Excess Cash Flow" to mission-aligned activities.

"Excess Cash Flow" means the surplus funds generated by a nonprofit organization after covering operational costs and program expenses, allocated to future projects or reserves.

Definition of "Excess Cash Flow" as applicable to distressed asset portfolios

This definition applies "Excess Cash Flow" to recovery plans.

"Excess Cash Flow" refers to cash generated from distressed asset portfolios, after covering recovery costs, debt obligations, and operational expenses.

Definition of "Excess Cash Flow" as arising from renewable energy projects

This definition ties "Excess Cash Flow" to sustainable investments.

"Excess Cash Flow" means the surplus cash produced by renewable energy projects after meeting capital costs, maintenance expenses, and debt servicing requirements.

Definition of "Excess Cash Flow" as determined by loan syndication agreements

This definition connects "Excess Cash Flow" to collaborative financing.

"Excess Cash Flow" refers to cash generated by a borrower that exceeds obligations, subject to allocation requirements specified in loan syndication agreements.

This definition links "Excess Cash Flow" to financial forecasting.

"Excess Cash Flow" means the anticipated surplus cash identified in financial projections, contingent upon achieving operational and financial benchmarks.

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.

Last updated 01 Apr 2025