documentation-covenants-terms — Private Credit & Debt Practice Questions
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- If the current SOFR rate drops to 0.25%, what is the all-in interest rate the borrower must pay?
- A borrower's credit agreement includes a 'Negative Pledge'.… — Is this allowed?
- A loan is priced at SOFR + 600 bps with a 1.0% floor. If the current SOFR rate is 0.5%, what is the total inte
- If Term SOFR is currently 0.75% and the loan was issued with a 2.0% Original Issue Discount (OID) over a 5-yea
- What is the company's 'covenant headroom' in EBITDA terms?
- Is the company in default?
- A loan agreement specifies that the borrower's Total Leverag… — How should this covenant be classified?
- What is the immediate consequence for the CLO Equity holders?
- If the company subsequently raises a 'down round' at $6.00 per share, what is the fund's new conversion price?
- If the equity tranche is $50M (10% of capital), what is the 'Cash-on-Cash' yield before defaults?
- If current SOFR is 0.50%, what is the total coupon rate?
- What is the likely impact on the loan's fair value?
- If SOFR is currently 0.50%, what is the all-in interest rate paid by the borrower?
- If the company currently has $100M in debt, what is the minimum equity injection required to restore complianc
- If the expected life of the loan is 4 years and SOFR is currently 5.0%, what is the approximate all-in yield t
- If the net debt is $272 million, how much 'headroom' does the company have on its leverage covenant expressed
- If the current 3-month Term SOFR is 0.65%, what is the all-in coupon rate paid by the borrower?
- If the current SOFR rate is 0.50%, what is the all-in interest rate paid by the borrower?
- If the current market SOFR rate is 0.25%, what is the all-in interest rate?
- What is the minimum equity cure amount the sponsor must inject to restore compliance with the leverage covenan
- How much cash does the borrower actually receive at closing from this tranche?
- If the company issues a new incremental 'accordion' facility at a spread of 600 bps, and the original facility
- What is the Covenant EBITDA?
- If SOFR resets to 0.50% and the loan is priced at 98.00 (OID), what is the current effective coupon rate?
- What is the estimated annual cash-on-cash yield to equity (assuming no defaults)?
- If the borrower draws20M while SOFR is 4.5%, what is the total annual cost of the facility in dollars?
- In a 'Maintenance' vs 'Incurrence' covenant comparison, which of the following is true of Incurrence covenants
- If the current SOFR rate is 0.50% and the loan is marked at 98.0 (fair value), what is the current yield?
- If SOFR rises to 6.00%, what is the borrower's effective interest rate?
- If the unrated equity tranche is $50M, and the pool suffers a 2% annual default rate with 65% recovery, what i