The past few weeks have seen a marked increase in businesses drawing down their RCFs. In the era of cov-lite loans, extensive use of a revolver might be one of the first indications of financial distress, or, amid the coronavirus crisis, could indicate a company's desire to hoard cash for a rainy day. In this podcast, hosts Peter Washkowitz and Shweta Rao discuss the documentary implications of RCF draws, how a business may prevent a springing financial covenant in a RCF to spring, how a business may prevent a sprung covenant from being breached and what levers lenders have to refuse a draw. If you are not a Reorg subscriber, request access here: go.reorg-research.com/Podcast-Trial