easy · Debt Capital Markets credit-ratings-risk
Why is the Administrative Agent's role important for the margin ratchet?
- They calculate the new rate and notify both the lenders and the borrower of the margin change.
- They provide the independent issuer credit rating used to set the rating-based pricing grid.
- They alone hold authority to waive a contractual margin step-up when borrower leverage rises.
- They independently calculate the borrower's EBITDA using their own internal modeling estimates.
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