Analyzing Credit Agreement Terms

Evaluates credit agreement provisions focusing on borrower flexibility, lender protections, covenant structures, and documentation comparison across credit facilities. Applies to syndicated loans, direct lending facilities, leveraged credit agreements, and refinancing documentation.

When To Use

• Reviewing a new credit agreement or amendment for key risk provisions
• Comparing a proposed credit agreement against a precedent deal or market-standard terms (e.g., LSTA model credit agreement)
• Assessing borrower-favorable vs. lender-favorable tilts in covenant packages
• Evaluating flex provisions, MFN protections, or incremental facility terms
• Analyzing documentation in the context of a leveraged buyout, refinancing, or add-on transaction

Inputs To Gather

• Credit agreement (or draft term sheet / commitment letter) to be analyzed
• Comparison document (if applicable): precedent deal, model form, or competing proposal
• Transaction context: deal type (LBO, refi, dividend recap, add-on), borrower industry, sponsor involvement
• Borrower financials: LTM EBITDA, leverage levels, total debt quantum (needed for covenant and basket analysis)
• Specific focus areas (if any): e.g., "focus on J. Crew protections," "assess EBITDA addback caps," "compare incremental terms"