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Product ID: 405569EAU
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Drafting and Negotiating Financial Covenants

OnDemand Webinar (89 minutes)

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.


David L. Osburn, M.B.A., CCRA, Osburn & Associates, LLC


Review Financial Covenants Including What Is a Covenant and Why Are They Used

Explore the Common Type of Financial Covenants Including the Current Ratio, Debt to Equity Ratio, and EBITDA Formulas

Evaluate Additional Financial Covenants Including Those Dealing With Times Interest Earned (TIE), Net Worth, and the BBC

Discuss Creating, Negotiating, Setting, and Monitoring Financial Covenants

Cover the Institution's Recourse When a Covenant Has Been Broken

Utilize Case Studies to Summarize the Webinar Ideas