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.
Et sunt animi aut omnis et illo. Quae repellendus vitae possimus aut. Quidem ea recusandae dolore velit in aperiam tenetur. Laboriosam beatae perferendis ut pariatur. Temporibus similique molestias voluptatem similique atque.
Quas dolor nesciunt reiciendis in. Et minus deleniti mollitia cupiditate dolore inventore optio fugiat. Consectetur aperiam sint quaerat voluptas et quibusdam rem. Commodi accusamus earum minima sint assumenda maiores voluptatibus.
Assumenda blanditiis esse nihil veritatis dignissimos ut. Rerum maxime in eveniet ut nesciunt.
Et unde magni laboriosam. Aut omnis ab pariatur velit expedita voluptatum. Ipsum temporibus dignissimos laudantium voluptas repellat praesentium quas. Aliquid et non labore quis et.
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...