Description
Gain an understanding of the most used financial covenants, their purpose and when and how they are tested and calculated.This topic will cover financial covenants including what is a covenant and why banks and other institutions utilize covenants, common types of financial covenants including the current ratio (liquidity), debt to equity ratio (leverage), and EBITDA (cash flow) calculations, and additional financial covenants including Times Interest Earned (TIE), net worth (including tangible net worth), and the Borrowing Base Certificate (BBC). The information covers drafting or creating financial covenants and negotiating, setting, and monitoring the covenants and explores the breaching of financial covenants and the institution’s recourse when a covenant has been exceeded. Case studies will illustrate this topic.
Date: 2019-03-25 Start Time: End Time:
Learning Objectives