Choose Site

Webinars

Strafford: Structuring Financial Covenants, EBITDA, Events of Default, and MAC Clauses in Loan Documents: Maximizing Borrower Protection and Lender Remedies

Thursday, January 21, 2021
01:00 PM - 02:30 PM ET

Finance partner Kristen Campana will be speaking in an upcoming Strafford live webinar, "Structuring Financial Covenants, EBITDA, Events of Default, and MAC Clauses in Loan Documents: Maximizing Borrower Protection and Lender Remedies".  During this 90-minute program, the panel will provide borrowers' and lenders' counsel with a review of the use of EBITDA, leverage ratios, and other metrics in the loan documentation and financial covenants. Panelists will also outline critical issues relating to structuring financial covenants, related definitions, and events of default provisions in commercial loans.

Topics the program will cover:

  • Purpose of financial covenants
  • Types of financial covenants
  • Financial definitions: net income, EBITDA, fixed charges
  • Covenant-lite transactions
  • Distinctions between cash flow and asset-backed loans
  • Mandatory prepayments: excess cash flow
  • Equity cure rights

The panel will review these and other key issues:

  • Why have financial covenants?
  • What are the key conceptual drivers that fuel the negotiation of financial covenants?
  • How does understanding these key concepts help negotiate the optimal outcome for clients?

CLE credit: See event website for more information