03.04 · Financing
Covenant negotiation
Financial covenants set against the plan the business can actually meet.
Covenants are agreed once and lived with for years. We negotiate definitions, headroom and cure rights against a plan that includes a realistic downside, not only the base case.
Where covenants are already tight, we prepare the waiver or reset discussion with lenders before a breach rather than after one.
Scope of the mandate
Covenant set, definitions and headroom
Equity cure and reset mechanics
Reporting obligations
Waiver and amendment negotiations
Typical situation
A borrower is approaching a covenant test that the current forecast will not pass, and needs a position agreed with lenders in advance.
Responsible
Related sub-services
Sell-side mandatesHolding structuresListing readinessAsset & portfolio deals