Covenant-Lite Loans definition
Covenant-Lite Loans means any Bank Loan that either (i) does not contain any financial covenants or (ii) requires the borrower to comply with an Incurrence Covenant but no Maintenance Covenant.
Covenant-Lite Loans means a Credit Facility Loan or a mezzanine investment (which would otherwise qualify as a Mezzanine Investment but for the absence of the following covenants) that does not include each of (i) a leverage covenant and (ii) either (x) a fixed charge coverage ratio of not less than 1.00 to 1.00, or (y) a debt service ratio of not less than 1.25 to 1.00, or (z) an interest coverage ratio of not less than 1.50 to 1.00.
Covenant-Lite Loans means a Credit Facility Loan or a mezzanine investment (which would otherwise qualify as a Mezzanine Investment but for the absence of the following covenants) that (i) does not include at least one of the following: (a) a leverage covenant, (b) a fixed charge coverage ratio of not less than 1.00 to 1.00, (c) a debt service ratio of not less than 1.25 to 1.00, or (d) an interest coverage ratio of not less than 1.50 to 1.00, and (ii) is for an issuer whose trailing 12 month EBITDA (or adjusted EBITDA, consolidated EBITDA, adjusted consolidated EBITDA or such other similar term as may be used in the applicable documentation) is at least $50,000,000.
Examples of Covenant-Lite Loans in a sentence
Liability Rating Class Senior Secured Loan Senior Secured Bond, Senior Secured Note and Senior Secured Recurring Revenue Loan Asset Higher Qualified First Lien Loan Qualified First Lien Loan Second Lien, Non-Senior Secured Recurring Revenue Loan Asset and Senior Unsecured Subordinate AA (sf) 49.00 % 45.25 % 42.00 % 37.00 % 25.75 % 7.50 % Numbers in italics correspond to the recovery rates for Senior Secured Covenant-Lite Loans.
More Definitions of Covenant-Lite Loans
Covenant-Lite Loans means (i) any Quoted Investment that does not require the Borrower to comply with any financial covenants (including without limitation any covenant relating to a borrowing base, asset valuation or similar asset-based requirement) and that trades at a discount to par in excess of 15% and (ii) any Unquoted Investment that does not require the Borrower to comply with any financial covenants (including without limitation any covenant relating to a borrowing base, asset valuation or similar asset-based requirement), in each case regardless of whether compliance with one or more incurrence covenants is otherwise required by such loan.
Covenant-Lite Loans means each First Lien Covenant Lite Loan and Second Lien Covenant Lite Loan.”.
Covenant-Lite Loans means a Credit Facility Loan or a mezzanine investment (which would otherwise qualify as a Mezzanine Investment but for the absence of the following covenants) that (i) does not include eachat least one of the following: (ia) a leverage covenant and, (ii) either (xb) a fixed charge coverage ratio of not less than 1.00 to 1.00, or (yc) a debt service ratio of not less than 1.25 to 1.00, or (zd) an interest coverage ratio of not less than 1.50 to 1.00, and (ii) is for an issuer whose trailing 12 month EBITDA is at least $50,000,000.
Covenant-Lite Loans means (i) any Quoted Investment that does not require the Borrower to comply with any financial covenants (including without limitation any covenant relating to a borrowing base, asset valuation or similar asset-based requirement) and that trades at a discount to par in excess of 15% and (ii) any Unquoted Investment that does not require the Borrower to comply with any financial covenants (including without limitation any covenant relating to a borrowing base, asset valuation or similar asset-based requirement), in each case regardless of whether compliance with one or more incurrence covenants is otherwise required by such loan. “First Lien Bank Loan” means a Bank Loan (including any First Out Portion of any Unitranche Bank Loan) that is entitled to the benefit of a first lien and first priority perfected security interest (subject to customary encumbrances and, only in the case of any such Bank Loan that is not a Unitranche Bank Loan, to any Permitted Prior Working Capital Lien) on a substantial portion of the assets of the respective borrower and guarantors obligated in respect thereof; provided that if the leverage ratio of the relevant borrower or borrower group under such Bank Loan at any time exceeds 4 to 1, only that portion of such Bank Loan which when added to all senior debt of such borrower or borrower group would cause the ratio of such sum to it or their EBITDA not to exceed 4 to 1 shall be treated as a First Lien Bank Loan and any portion in excess of such portion shall not be a First Lien Bank Loan and shall be deemed a Second Lien Bank Loan. For purposes of this definition, 70 (a) the “leverage ratio” of any borrower or borrower group shall mean the ratio of the relevant portion of the relevant Bank Loan plus all senior debt of such borrower or borrower group to the sum of the EBITDA of such borrower or borrower group for the four quarters most recently ended (subject to customary adjustments resulting from fundamental corporate changes) (b) “senior debt” shall mean all Indebtedness of such borrower or borrower group (other than such Bank Loan) that is secured (other than Indebtedness that is secured solely by the same collateral as such Bank Loan and on a basis junior thereto) or that is senior to or pari passu with such Bank Loan, and (c) “EBITDA” shall mean earnings before interest, taxes, depreciation and amortization plus such other adjustments as may be included in the definition of “EBITDA” (or similar defined term used for the purp...