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Learn/Loan documents and covenants in depth

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Learn Loan documents and covenants in depth

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B Basic

Anatomy of a credit agreement9m
Collateral, guarantees, and perfectionPro9m
Financial covenants in practicePro10m

A Advanced

Negative covenants and basketsPro11m
Amendments, voting, and defaultsPro10m
Intercreditor agreements and unitranche structuresPro11m

FlashcardsPro0/15
Basic quizPro80% passes
Advanced quizPro80% passes
Terms

Loan documents and covenants in depth

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of 6 lessons: 0
of 15 cards

Flashcards Start the first lesson

A loan is only as good as its document. How a credit agreement is built, what the collateral and guarantees really cover, how covenants and baskets are set, and who gets to change the rules later.

BBasic3 lessons

1Anatomy of a credit agreementA two page term sheet becomes a two hundred page credit agreement. Most of it follows the same order, and knowing the order tells you where to look.9 min
2Collateral, guarantees, and perfectionProSecured means nothing if the lien was never perfected or the valuable assets sit in a subsidiary that never signed. Lenders check both.9 min
3Financial covenants in practiceProA covenant level is not picked from the air. It is set off the sponsor's plan with a cushion, steps down as the loan should deleverage, and comes with cure rights the sponsor will use.10 min
Basic quizPro10 questions, 80% passes

AAdvanced3 lessons

4Negative covenants and basketsProNegative covenants forbid debt, liens, dividends, and investments, then carve out exceptions called baskets. The size and growth of the baskets decide how much value can leave the lender's reach.11 min
5Amendments, voting, and defaultsProMost terms can be changed by a simple majority of lenders. A short list cannot be changed without each affected lender. Knowing which is which tells you how exposed your position is to the rest of the group.10 min
6Intercreditor agreements and unitranche structuresProWhen two groups of lenders share one company, a separate agreement decides who is paid first and who can act. The same logic sits inside a unitranche, split privately into first out and last out pieces.11 min
Advanced quizPro10 questions, 80% passes