Loan Covenant


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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.
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Lower than expected operating performance along with the ongoing costs associated with over- hedged, out of the money swap positions has caused the Group to breach the ICR loan covenant on its primary loan facility.
The month-long activity aims to jointly conduct a review on how close Kalahi-CIDSS has come to achieving it key targets and development objective, while checking its compliance with the loan covenant with World Bank.
15, 2019, reduces the interest rate pricing grid for all floating rate borrowings covered by the loan agreement, establishes a new $3 million advancing term loan to be used for capital expenditures to increase daily shipping capacity, releases the personal guaranty of Randall White and Carol White, along with other loan covenant requirements being lessened.<br />"The changes with our bank over the last year to increase our line and reduce our effective borrowing rate, among other positive changes, reflect their continued support and desire to work with us on a go forward basis," Randall White said.<br />EDC is a publisher of books for children.<br />
A loan covenant is a provision in a loan agreement that requires the borrower to do certain things or maintain certain conditions, or that limits or forbids certain things so long as loan funds are outstanding.
The Milton Keynes-based group was thrown a lifeline in August by its banks who granted a second extension to waive a loan covenant test until October - an extension which is still in place.
Lloyds, Barclays and Royal Bank of Scotland have all agreed to waive a loan covenant test due at the end of the May and to provide cash until the end of August while a long-term recovery plan is put in place.
Lloyds, Barclays and Royal Bank of Scotland have all agreed to waive a loan covenant test due at the end of the month and to provide cash until the end of August while a long-term recovery plan is put in place.
The Bank of Scotland will also waive the loan covenant it was set to breach at the end of January.
When a tenant is in default of its loan covenant, it's also often in default of a lease provision requiring it to avoid default, thereby impacting the real estate manager.
"The company is already prohibited from accessing its credit line after violating a term of their loan covenant several months ago.
Mark Rusch, PME's CFO and partner, also provides the bank with detailed aged payables and receivables; inventory totals; monthly loan covenant calculations, which include debt-to-tangible net worth and current ratio calculations; collateral reports, with a breakdown of payables and receivables used in the calculations; and quarterly cash flow coverage.
In many cases you could argue that loan covenant violations during the initial quarters after a transaction closing are as much the fault of the lending institution who designed the structure as the borrower that accepted the deal.