easy · Private Credit documentation-covenants-terms
In a 'Maintenance' vs 'Incurrence' covenant comparison, which of the following is true of Incurrence covenants?
- They are typical of mid-market bank-arranged senior loan facilities generally.
- They provide lenders with a quarterly early warning signal of credit deterioration.
- They are only tested when the borrower takes a specific action like incurring new debt.
- A breach occurs automatically the instant EBITDA falls below a specified minimum threshold level.
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