Gain a first-principles understanding of how financial covenants should be defined in credit agreements.

This 1-day course explores the sometimes competing considerations that should be taken into account when defining financial covenants in project finance credit agreements. It explains the relationship between the credit agreement and the project’s financial model, and considers the consequences for the model of different approaches to drafting the principal ratios.

The typical delegate looks after the standard wording in the credit agreement that is used as a template for all deals; or needs to understand which divergences from the standard wording are acceptable and which to be resisted when transaction counterparties demand them. The course is also relevant to those whose responsibilities include issuing term sheets which specify ratio-based covenants.