Loan Agreement Review

Executive Summary

A one-look roll-up of the facility's economic and legal spine - borrower, agent, facility type, commitment, maturity, pricing, covenant package, and lien priority - so a reviewer can orient before reading detail.

Facility Type Classification

The single-category facility posture (broadly syndicated, private credit, second-lien / mezzanine, ABL, or investment-grade) that determines which monitoring playbook applies.

Terms Classification

A headline read on how borrower- or lender-favorable the terms are relative to market - Standard, Above-market lender protections, Aggressive borrower flexibility, or Adverse to lenders - the asset manager's key value-add.

Parties and Agents

The legal names of the borrower, parent, guarantors, administrative and collateral agents, arrangers, and sponsor; mis-identifying a party breaks every downstream notice and enforcement.

Facility Structure and Amounts

Every tranche - revolver, term loans, delayed-draw, and incremental - with commitment, amount funded at closing, draw period, currency, and use of proceeds.

Pricing and Interest Terms

The benchmark and credit spread adjustment, applicable margin, floor, any PIK option, commitment and default fees - the interest economics, with LIBOR references flagged for SOFR replacement.

Pricing Grid

The leverage- or rating-based pricing tiers with the margin and commitment fee at each level, checked for contiguous, non-overlapping, directionally correct tiers.

Key Dates and Term

The closing, maturity, and amortization-commencement dates plus any DDTL commitment-termination and springing-maturity triggers, so the real term is unambiguous.

Amortization and Repayment

The scheduled amortization, payment frequency, any bullet at maturity, and the excess-cash-flow sweep - how the principal is paid down.

Mandatory Prepayment

Each mandatory-prepayment trigger (excess cash flow, asset sale, debt issuance, insurance / condemnation) with sweep percentage, leverage step-downs, reinvestment rights, and application.

Voluntary Prepayment and Call Protection

The borrower's right to prepay at par and any soft-call, hard-call, or make-whole premium a lender receives on early repayment or repricing.

Financial Covenants

Every maintenance or springing covenant (net leverage, interest coverage, FCCR, minimum liquidity or EBITDA) with the full step-down schedule, first test date, springing trigger, equity cure, and default consequence.

EBITDA Definition and Addbacks

The defined EBITDA build-up and permitted addbacks (synergies, run-rate, one-time, stock comp) with caps and realization periods - the denominator that quietly loosens the whole agreement.

Negative Covenants and Baskets

The negative covenants (debt, liens, restricted payments, investments, asset sales) and the fixed, grower, ratio, and builder baskets that define borrower flexibility and liability-management capacity.

Incremental Facilities and MFN

The free-and-clear and ratio-based incremental capacity plus MFN spread-cap protection, sunset, and carve-outs that shield existing lenders from being repriced below new debt.

Affirmative Covenants and Reporting

The affirmative covenants and, critically, the reporting deliverables and deadlines (financials, compliance certificates, budgets) an asset manager relies on to monitor the credit.

Representations and Warranties

The material representations, whether qualified by materiality or a Material Adverse Effect standard, and whether brought down at each borrowing - flagging unusual or notably broad reps.

Conditions Precedent

The conditions to closing and to each subsequent borrowing or draw, including any limited-conditionality (funds-certain) provision on acquisition financings.

Events of Default

The complete list of events of default with grace / cure periods, dollar thresholds, and cross-default vs. cross-acceleration basis - what lets lenders accelerate.

Security, Guarantees, and Lien Priority

The collateral package, lien priority, guarantor coverage, excluded assets and subsidiaries, and any intercreditor arrangement - what secures the debt and what shapes recovery.

Provision Watchlist and Analyst Notes

A concise, cited narrative flagging the handful of provisions that most warrant monitoring or escalation and explaining the Terms Classification, synthesized across the extracted columns.