Loan Covenants
Good Morning,
Just wanted to see if I could get a conversation going about types of loan covenant structures you might create to protect your bank and/or credit union from the Borrowers of all types (real estate, C&I, non-profit). If I wanted additional info where would I find the language, finding it hard to look for exact language as provided below.
Ex. (C&I loan)
On a combined basis, the Borrower & Co-Borrower (Nominee, LLC & Nominee Corp.) shall maintain a minimum post-distribution debt service coverage ratio of 1.20x throughout the term of the loan – to be tested on an annual basis beginning with FY2024.
Transactions where the borrower’s Total Debt dividedby EBITDA (earnings before interest, taxes,depreciation, and amortization) or Senior Debt dividedby EBITDA exceed 4.0X EBITDA or 3.0X EBITDA,respectively – to be tested on an annual basis beginning with FY2024.
Quia excepturi quia mollitia blanditiis voluptatem. Quia ipsam sequi nihil repellat laboriosam odio et. Dolor omnis adipisci a expedita nam quibusdam vel. Ea maxime omnis accusantium enim voluptatem placeat modi. Vel et doloremque corrupti. Culpa tempore iste similique corporis nisi. Ut voluptatem aspernatur atque voluptatem.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...