Credit Covenant Concepts – U.S. Investment Grade Edition

Ideally, you should watch this course at least twice – at least once before watching the Credit Covenant Concepts – U.S. Leveraged Finance Edition course so that you hopefully get convinced that it is worth investing in that one, and at least once after watching the Credit Covenant Concepts – U.S. Leveraged Finance Edition course so that you better appreciate the key differences between the leveraged finance and the investment grade space. But let’s get serious and see a formal course description. Khm. For large investment grade U.S. companies, senior bonds and commercial paper are commonly the main pillars of debt financing. Bank financing tends to play a supplementary, but nevertheless very important role, often in the form of long-term committed revolving credit facilities. This course focuses on the incurrence covenants and financial maintenance covenants commonly encountered in such senior bonds and credit facilities from an analyst’s perspective.

The key topics covered are the following:

• Brief overview of some typical characteristics of such instruments and some key stylized facts
• Typical incurrence covenants and financial maintenance covenants encountered in investment grade credit agreements compared to sub-investment grade credit agreements
• Typical incurrence covenants encountered in investment grade senior bond compared to sub-investment grade (‘high yield’) bonds

To make you even more curious, some of the key concepts discussed are the following:

• Limitation on subsidiary debt, limitation on liens, negative pledge, limitation on fundamental changes, limitation on sale and leaseback transactions, different varieties of asset-based grower baskets, restricted property, principal property and principal subsidiaries, capitalization ratios in financial maintenance covenants

Total gross duration of the videos: about 1.5 hours

Product access duration: 6 months

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