Financial Covenants in Loan Facility Agreements - An Introduction - Live at Your Desk

Introduction

This live broadcast session will provide an introduction to the different kinds of financial covenants and their purpose and well as how financial covenants are tested under English loan agreements (and LMA documentation in particular) .

The reasons for using financial covenants and their impact on a borrower's business will also be covered.

What You Will Learn

This live and interactive broadcast will cover the following:

Part 1 - Reasons for including financial covenants

• The value of financial covenants in really knowing a borrower's business
• Monitoring the financial health of a borrower
• Monitoring the value of a lender's security package

Part 2 - Different financial covenants

The different financial covenants, their purpose and when they might be used, specifically in relation to:

• Loan to value
• Interest cover
• Debt service cover
• Leverage
• Gearing
• Capital expenditure

Part 3 - Testing financial covenants

• Provision of financial information
• Compliance certificates
• Relevant periods
• Potential breach
• Curing a breach

Part 4 - Practical implications

• Financial reporting
• Exceptional items
• Plans for growth

Recording of live sessions: Soon after the Learn Live session has taken place you will be able to go back and access the recording - should you wish to revisit the material discussed.