easy · Private Credit documentation-covenants-terms
Meridian Logistics breaches its 5.75× leverage covenant. Its private equity sponsor, KomFi Capital, injects $10,000,000 of new cash equity into the company to pay down the debt and restore compliance with the ratio. This mechanism is known as an:
- Dividend Recap
- Make-Whole
- Equity Cure
- Asset Step-Up
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