Affirmative and Negative Loan Covenants: Customizing Obligations and Restrictions Specific to the Transaction
A live 90-minute premium CLE video webinar with interactive Q&A
This CLE webinar will take a deep dive into affirmative and negative covenants in loan agreements that are designed to preserve the creditworthiness of the borrower and protect the lender against downside risk. The panel will review the language and purpose of commonly used affirmative and negative covenants and provide negotiating and drafting strategies for borrowers and lenders relating to these loan terms.
Outline
- Overview: designing covenants for various types of transactions
- Affirmative covenants
- Negative covenants
- Common carveouts or exceptions
- Negotiating and drafting strategies for borrowers and lenders
Benefits
The panel will review these and other key issues:
- What are common examples of affirmative and negative covenants included in loan agreements?
- What are key considerations for lenders when adding negative or affirmative covenants to a loan agreement?
- Do borrowers have any leverage when negotiating negative or affirmative covenants?
- What are some exceptions or carveouts to consider when structuring affirmative or negative covenants?
Faculty
Lindsey Hughes
Counsel
Haynes and Boone
Ms. Hughes represents some of the world’s largest financial institutions in connection with the structuring,... | Read More
Ms. Hughes represents some of the world’s largest financial institutions in connection with the structuring, negotiation and documentation of complex domestic and multi-jurisdictional financing transactions, including subscription-secured credit facilities with top-tier private equity and real estate funds. She also has experience representing financial institutions and commercial borrowers in syndicated credit facilities, term loans, construction loans, real estate secured loans, hybrid collateral facilities, and acquisition financings.
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Nick Monier
Partner
Haynes and Boone
Mr. Monier represents financial institutions and borrowers in commercial loan transactions. He has represented agents,... | Read More
Mr. Monier represents financial institutions and borrowers in commercial loan transactions. He has represented agents, lenders and borrowers in syndicated credit transactions involving revolving credit facilities, term loans, letters of credit, and acquisition financings. Mr. Monier has helped lenders enter into loan facilities, represented agents in amending and restating existing credit agreements, and aided borrowers in financing for acquisitions of over 75 companies. He has experience in secured and unsecured credit facilities to real estate investment funds and to the hospitality industry.
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Laura Shapiro
Attorney
Haynes and Boone
Ms.Shapiro represents borrowers, financial institutions and alternative lenders in a variety of commercial and... | Read More
Ms.Shapiro represents borrowers, financial institutions and alternative lenders in a variety of commercial and corporate transactions. Her practice focuses on general commercial finance, acquisition financing, construction lending, real estate secured transactions, note-on-note financing, recapitalization transactions, restructurings and other large corporate credit facilities. Ms.Shapiro is solutions-focused and detail-oriented in her representations of both lenders and borrowers. Her representative matters include a wide range of deal sizes and borrower-types, from large international investment grade facilities and agent bank syndications to smaller regional transactions and Texas local counsel representations.
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Erin Simmons
Partner
Haynes and Boone
Ms. Simmons has a broad lending practice representing banks, financial institutions, businesses, and private... | Read More
Ms. Simmons has a broad lending practice representing banks, financial institutions, businesses, and private equity sponsors in structuring and negotiating secured and unsecured loans, bilateral and syndicated loans, cash-flow loans, asset-based loans, reserve-based loans, leveraged loans, and subordinated debt. She has worked on transactions across a wide range of industries, including outdoor recreation, retail, food and beverage, manufacturing, equipment leasing, oil and gas, mining, energy, healthcare, logistics, construction, communications, transportation, and agriculture.
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