Loan Covenant

(redirected from Loan Covenants)

Loan Covenant

A provision in a loan agreement binding the borrower or lender. A loan covenant states what actions the borrower and the lender may or may not take in certain situations. Covenants exist to reduce the risk to all parties to a loan.
Mentioned in ?
References in periodicals archive ?
M2 EQUITYBITES-November 8, 2017-Endomines receives waiver on bank loans on expected breaches of loan covenants
NORDIC BUSINESS REPORT-November 8, 2017-Endomines receives waiver on bank loans on expected breaches of loan covenants
In a statement, the central bank said, 'The tighter overall credit standards for commercial real estate loans reflected respondent banks' wider loan margins, reduced credit line sizes, stricter collateral requirements and loan covenants, and increased use of interest rate floors.
15 October 2015 - US-based bond and loan covenants information specialist Covenant Review and its majority shareholder, New York-based private equity fund Leeds Equity Partners, have acquired US-based research firm PacerMonitor, the company said.
Rivard will provide critical services to the greater New England market, allowing his clients to negotiate the most favorable interest rate, term and loan covenants on both new mortgages and the refinancing of existing loans.
Creditors have agreed to defer $400 million of debt -- due to mature in February next year -- by an additional two years and have also modified CMA CGM's loan covenants.
The net proceeds from the rights issue will be used to partly repay loans from Fokus Bank, the Norwegian unit of Danske Bank A/S (CPH:DANSKE), in order to meet the loan covenants.
The service pinned the outlook change on the tight cushion on the firm's senior secured term loan covenants.
Meanwhile, Birchwood-based property company In House Group has been put into administration after breaching loan covenants.
Although it is important to consider all costs associated with maintaining loan covenants, for an unaudited business to provide audited financial statements--especially for the first time--is a major undertaking that can be very costly.
Banks had reduced maximum lines of credit and increased collateral requirements, while loan covenants had also become stricter, it said.
The first one out of the box had to do with loan covenants.