Covenant

Covenantive Easing (Last of a Series)

As we wrap up our special series on how credit agreement terms are eroding, we asked our distinguished team of lawyers from Morgan Lewis: What should we expect, as issuers and credit providers, to come up in deals with financial covenants? “Financial maintenance covenants are often included in loan documents, even in larger deals,” said

Covenantive Easing (Fourth of a Series)

Our special series on envelope-pushing in the world of loan covenants continues with a look at “limited condition transaction” provisions. These provisions allow the borrower to decide, at its option, when it wants to test the conditions to entering into a transaction (typically an acquisition) that is not subject to a financing condition – sometimes

Covenantive Easing (Third of a Series)

As we continue our special series on covenants, we’ve noted how lenders and sponsors are pushing envelopes to deal with an increasingly competitive landscape. This includes areas of the credit agreement that might otherwise appear innocuous. Take financial statements. Quarterly numbers are typically due within 45 days after fiscal quarter-end, and annuals within 120 days

Covenantive Easing (Second of a Series)

Growing competitiveness in the buyout market is resulting in a variety of pressure points being applied by private equity sponsors to the lenders who finance their deals. Lines are blurring in the steps between buyers and financing sources – term sheet to commitment letters to credit agreement. Today, corporate finance attorneys tell us, a detailed

Covenantive Easing (First of a Series)

Much attention was paid over the past few weeks to a dramatic series highlighting the struggle between two powerful forces, a dizzying game for world domination, with the outcome hanging in the balance and viewers on the edge of their seats. Of course we’re talking about our recent series on valuations (“Why Valuations Matter” [link]).

Roses are Red, Covenants are Few

There comes a time when traditional means of communication fail. When other tools must be employed. According to Tuesday’s WSJ, graduates at the University of Glasgow are using haiku to summarize their complex planetary and lunar projects. These 17-syllable science-related poems, nicknamed “sciku,” make extremely technical topics “more accessible.” Given today’s challenging interplay of elements

Leveragin’ Loans

So much that was disturbing about the news last week. Social media was abuzz with opinions flying on both sides. Twitter was filled with long-submerged memories of crazy times hanging out at…everyone’s favorite orange-and-red java shops. We’re referring, of course, to the decision by Dunkin’ Donuts to drop “Donuts” from the brand name. In today’s