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Webinar

Don’t Be So Negative: An Overview of Negative Covenants in Credit Agreements


Program Speakers

Michael Urschel and Ellen Snare

Description

When companies look to borrow large sums of money—often to fund an acquisition, mission-critical investment or for a dividend recapitalization—lenders typically seek assurances that, in the event of a default, there will be sufficient, quality collateral in the capital structure. Affirmative and negative covenants restrict the sorts of activities or transactions a borrower and certain subsidiaries can undertake that might lead to collateral leakage or other circumstances that can affect the creditworthiness of a borrower. Negative covenants, in particular, are primarily meant to limit the outflow of assets from entities who are responsible for the debt, but also have day-to-day effects on running the borrower's operations and realizing business goals.

Because negative covenants are, by nature, restrictive, parties negotiating negative covenants should be sensitive to the sorts of operations that a borrower conducts, or may want to conduct, and what could set off red flags for a lender, or potential lenders in a syndicated transaction. In particular, understanding the negative covenant framework of a borrower across its capital structure can help business people and attorneys alike prepare to analyze potential strategic transactions for a borrower. This e-Learn will include an overview of negative covenants typically found in modern credit facilities and a number of scenarios illustrating their application, and some creative ways to accomplish a borrower's goals when faced with relatively restrictive covenants. It will also include discussion of the negotiation process and certain unusual exceptions or additions that have arisen in recent deals. 

Those who register may submit questions at the time of their registration to Kristina Sooy and their questions will be answered during the webcast. Questions may also be submitted during the broadcast.

You may register for the program here.

If you have questions that are not addressed during the program, please contact one of the speakers and they will be happy to answer them.

If you would like to receive CLE credit for this program, please complete this linked form and return to King & Spalding (see instructions on form).

Thank you for your interest in our e-Learn Series.  To send a request to have your name placed on the e-Learn invitation list, click here

Contact

Kristina Sooy
Professional Development Coordinator

King & Spalding LLP
1180 Peachtree Street NE
Atlanta, GA 30309
+1 404 572 3042 Direct
ksooy@kslaw.com

Event Details

Date: May 13, 2015

Time: 8:00 pm

Related
Securitization