easy · Private Credit documentation-covenants-terms
Meaning check before leverage, yield, or workout application.
Which statement correctly describes Covenant-lite loan?
- limit on dividends, equity repurchases, and other value transfers outside the credit group
- loan with fewer or no traditional maintenance financial covenants for the term-loan lenders
- contractual capacity to incur specified debt subject to conditions and limits
- test that applies only when the borrower takes a specified action
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