Advanced Covenant Analysis

Why This Course Matters

As covenant structures continue to evolve, advanced analysis is increasingly required to assess risk, particularly in stressed and distressed scenarios. Professionals must be able to evaluate liability management transactions, collateral release mechanics, secured debt capacity, and complex intercreditor dynamics. This course addresses those challenges directly, equipping participants with the technical expertise needed to identify red flags, perform advanced calculations, and assess risk in highly structured and bespoke transactions.

Course Overview

The program explores the evolution and function of key covenants, including Debt, Liens, and Restricted Payments, with a focus on how these provisions interact in practice. Participants learn advanced techniques for analyzing covenant capacity in stressed and distressed contexts, including the implications of liability management exercises, collateral releases, and incremental secured debt.

The course incorporates engaging, practical case studies—most notably the Monkey Business case—which guide participants through real-world scenarios involving covenant capacity calculations, red flag identification, and complex intercreditor arrangements. Advanced financial calculations are covered in depth, including debt basket capacity, restricted payment capacity, and ratio-based tests, supported by hands-on exercises and quizzes to reinforce learning.

Specialized modules address advanced intercreditor arrangements and European super senior revolving credit facilities (SSRCFs), further enhancing participants’ ability to analyze cross-border and structurally complex leveraged finance transactions.

What You Will Take Away

By the end of the course, participants will be proficient in performing sophisticated covenant analysis and advanced covenant calculations across complex leveraged finance transactions. They will be able to assess covenant behavior in stressed and distressed scenarios, identify and quantify risk arising from liability management strategies, and analyze collateral and secured debt capacity with precision. Learners will also develop the confidence to evaluate complex intercreditor structures and apply advanced analytical techniques to real-world documentation.

Who the Course Is For

This course is designed for professionals who have completed the Leveraged Finance Covenant Training and are seeking to deepen their expertise in covenant analysis. It is ideal for analysts, investors, lawyers, and other leveraged finance practitioners who regularly work with complex covenant packages and want to enhance their ability to analyze, calculate, and manage risk in sophisticated transactions.