The Framework – Why is it so powerful?
On January 8th, Fox Legal Training will introduce The Framework for covenant analysis. What is The Framework, and why is it so powerful?
The Framework breaks down leveraged finance documentation into its constituent parts, highlighting what the provisions are designed to achieve and why.
Understanding contracts
Each contract is an agreement between the parties, so The Framework will introduce those parties and their objectives as a foundational aspect of contract analysis.
You would never negotiate a contract if you didn’t know whatyour counterparty was looking to achieve, yet this is a frequent occurrence in the leveraged finance market. Most credit analysts don’t get any legal education at all, leaving them without the necessary skills to analyze and negotiate documentation.
Key concepts explained and explored
The Framework will provide you with the skills and tools to understand legal concepts that frequently appear in leveraged finance agreements. Understanding these building blocks is key to developing a comprehensive approach to analysis and negotiation.
For example, a solid grasp of the following concepts is essential to levfin contract analysis:
- Subordination – put simply, when one lender gets paid before another
- “The Box” – the value in the credit group
In addition, The Framework will cover key lender protections along with critical tools to preserve value. It will also explore common borrower flexibilities, their implications and how they might be used.
These concepts, and others, will be explained and explored in detail as part of The Framework. They are the essential building blocks to establish an understanding of documentary provisions that appear in high yield bonds, leveraged loans, and private credit agreements.
Missing the forest for the trees
Complexity is rife in levfin agreements, and this creates the risk that market participants miss the forest for the trees. Familiarity with legal terms and related concepts will confer confidence to review documentation, and this understanding will build with each agreement.
The Framework module will be less than 90 minutes long, making it the perfect precursor our flagship course, the Leveraged Finance Covenant Training, equipping clients with the skills to advance with ease.
Getting into the details before gaining an understanding ofthe concepts creates a risk of misunderstandings down the line, and in the current market this is not a risk that anyone wants to take.
Join us on January 8th at The Ned to gain a competitive advantage with The Framework. Send an email to info@foxlegaltraining.com to register.