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  • videocam On-Demand
  • signal_cellular_alt Intermediate
  • card_travel Banking and Finance
  • schedule 90 minutes

Affirmative and Negative Loan Covenants: Customizing Obligations and Restrictions Specific to the Transaction

$347.00

This course is $0 with these passes:

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Description

When entering into a loan agreement, lenders must determine what negative and affirmative covenants are important to ensure the borrower will continue to be able to repay the loan. Borrowers must also understand the nuances of these covenants to avoid issues in complying with these terms down the road.

Affirmative covenants are activities the borrower should do to maintain the financial health and well-being of the business and allow the lender to stay informed on the business' performance. Negative covenants are designed to prevent borrowers from taking actions that put their creditworthiness at risk, such as incurring additional debt or selling assets.

It is important for borrowers and lenders to carefully consider and understand what affirmative and negative covenants to include in a loan agreement rather than simply relying on stock or boilerplate terms. Counsel representing borrowers and lenders should design these terms and any exceptions or carveouts to accommodate the specific circumstances of each transaction.

Listen as our authoritative panel reviews common affirmative and negative covenants in loan agreements and best practices for negotiating and drafting these terms to meet the circumstances of various types of transactions.

Presented By

Lindsey Hughes
Counsel
Haynes & Boone LLP

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.

Nick Monier
Partner
Haynes & Boone LLP

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.

Laura Shapiro
Attorney
Parent: Haynes Boone

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.

Erin Simmons
Partner
Haynes & Boone LLP

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.

Credit Information
  • This 90-minute webinar is eligible in most states for 1.5 CLE credits.


  • Live Online


    On Demand

Date + Time

  • event

    Thursday, September 26, 2024

  • schedule

    1:00 p.m. ET./10:00 a.m. PT

  1. Overview: designing covenants for various types of transactions
  2. Affirmative covenants
  3. Negative covenants
  4. Common carveouts or exceptions
  5. Negotiating and drafting strategies for borrowers and lenders

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?