Strafford Publications: Structuring Financial Covenants: Purposes, Types, Definitions, and Uses in Loan Documents

Finance partner Kristen Campana will speak in a Strafford live webinar, "Structuring Financial Covenants: Purposes, Types, Definitions, and Uses in Loan Documents." Negotiating the definition of EBITDA and related financial covenants is a matter of intense client focus. Sophisticated clients rely on counsel to provide knowledgeable support on EBITDA and relevant covenants. Strategically crafted financial covenants and related definitions can provide the borrower with the flexibility to operate its business and the lender with adequate protection and remedies. Uncertainty or lack of clarity regarding drafting financial covenants and related definitions may result in costly disputes. Carefully structured credit agreement provisions can minimize disagreements among the parties.

During this 60-minute program, the panel will provide borrowers' and lenders' counsel with a review of the use of EBITDA, leverage ratios, and other metrics in loan documentation and uses of financial covenants. They will outline critical issues relating to structuring financial covenants, related definitions, and use in commercial loans.

The panel will review these and other key issues:

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