Key EOD vs EOD in Credit Agreement
Lads can anyone shed light on what typically constitutes a Key EOD as opposed to an EOD in a credit agreement? Also keen to hear underlying thoughts around this construct thanks
Cheers
Lads can anyone shed light on what typically constitutes a Key EOD as opposed to an EOD in a credit agreement? Also keen to hear underlying thoughts around this construct thanks
Cheers
Career Resources
Typically, in the U.S. at least, this is called a "Specified EoD" versus the more broad "EoD" on its own. Specified EoD will typically be payment defaults (typically just P&I, but could also include other fees and expenses due under the CA), insolvency, and bankruptcy. The more broad EoD would include Specified EoDs but also more minor defaults like a financial reporting default. More aggressive / large market CAs are typically only Specified EoD qualifiers on CA provisions (for example, accessing an Available Amount, incremental debt, or other negative covenant baskets, etc.). From the Borrower perspective this feels more fair because you wouldn't want your ability to do something blocked because your CFO sent in financial statements late. From the Lender perspective its not great because why would you want the Company potentially moving assets or cash away from you when you don't know the current financial performance status of the Company (for a specific example). However, Lenders are increasingly acknowledging its the Specified EoDs that really matter at the end of the day and not potential "foot faults".
Enim et nulla et nesciunt blanditiis ut. Atque excepturi enim est et explicabo omnis. Incidunt et magnam dolores corrupti incidunt ut quod. Non maiores totam itaque rem in.
Voluptatem deleniti perferendis autem distinctio minus eligendi. Nam iure unde harum recusandae sapiente numquam doloremque. Placeat voluptatibus sed modi aperiam sint voluptatem.
Quidem a blanditiis corporis ratione quae modi assumenda pariatur. Qui maxime nam unde delectus dolorem. Fugiat expedita sint totam facere ut totam vitae. Atque aliquid voluptas vel dolores magnam.
Officiis ea laudantium doloribus dolorem. A necessitatibus ipsum rerum saepe illum sit qui. Numquam accusantium ut totam. Quia quaerat enim eveniet distinctio et dignissimos.
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...