easy · Debt Capital Markets
In a committed financing package, what is the purpose of a 'flex' provision?
- To give the underwriting banks the right to adjust interest rates or fees to clear the market during syndication.
- To provide the investor with the option to convert the debt into common equity at a premium.
- To allow the issuer to increase the size of the loan without additional bank approval.
- To permit the borrower to skip interest payments if cash flow falls below a certain multiple.
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