CAPITAL-STRUCTURE5 MIN READ
Negotiate Covenants as Early Warnings, Not Decorations
Negotiate covenant terms by linking lender protection to operational flexibility and measurable cushions.
Reed R Senior lender 1 Name risk 2 Offer measure 3 Protect plan Term sheet call 20 sec Covenant package The spread is acceptable, but the leverage covenant is tight enough to trip if the planned restructuring hits EBITDA before savings show up. Covenants decide control in a miss. Negotiating only price misses the real constraint. 3.75x proposed netleverage test $12M approvedrestructuring
Read the full lesson
Sign up free — one personalized lesson every day, matched to your role and goals.
Already have an account? Sign in