Covenants: Covenant Analysis Amid the Coronavirus Scramble to Preserve Liquidity (March 24, 2020)

Mar 24, 2020

Hosts analyze the critical role of covenants during economic chaos sparked by the coronavirus. They discuss how U.S. companies are drawn to revolvers for liquidity, highlighting loan structures and springing maintenance covenants. The conversation delves into strategic credit management, emphasizing asset-based decisions. Banks' assessments of material adverse effects are examined, especially for hard-hit sectors like airlines. Finally, they explore the shifting landscape of corporate liquidity strategies, stressing cash retention over taking on more debt.

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Intro

00:00 • 2min

Liquidity Challenges and Revolver Drawdowns During Economic Downturn

01:43 • 3min

Strategic Credit Management During Financial Uncertainty

04:54 • 2min

Material Adverse Effects and Banking Considerations During a Pandemic

07:18 • 1min

Navigating Liquidity Challenges Amidst Economic Uncertainty

08:36 • 4min