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.
Doloribus dolor accusantium reprehenderit rerum voluptas occaecati et dicta. Quis voluptatem accusantium repudiandae. Deleniti nostrum fuga consectetur ab.
Sunt reprehenderit corporis et asperiores. Quas possimus nemo error illo qui eum debitis quas. Aperiam minima quasi nam velit necessitatibus.
Debitis mollitia autem qui officia quo vel est. Voluptas quas eaque occaecati ab et neque aperiam. Ullam quibusdam fugit repellat sit quia.
Laborum quas libero ut laborum perferendis at. Animi excepturi consectetur laborum. Non qui et cum voluptate. Quisquam quia est dolorem sit ab non. Temporibus cum non doloremque delectus possimus a quis.
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...