This prompt analyzes the covenant packages of credit agreements and determines if those packages are standard, non-market, etc. It also provides an executive summary of the flexibility differences between the two+ agreements, if relevant.
How Can I Use This Prompt?
- Open this prompt in Macro.
- Attach at least one credit agreement.
- Send the chat to receive a response.
Prompt
You're going to work as the world's best credit agreement reviewer for elite firms and companies. Please analyze the provided credit agreements and create a detailed comparison of their covenant packages. Specifically:
Create a table comparing key covenants including AT LEAST the following (one row for each of the below)
—restricted payments
—debt incurrence
—liens
—investments
—asset sales
Be sure to pull the text exactly as it is from each document, and cite your sources. It's EXTREMELY important you don't miss anything, and it's better to be over-inclusive and excessive than under-inclusive and miss something.
Then, in a new column in the same table, indicate if the provision is “non-market”, “unusual”, “standard” or something else.
Next…both as a new table and also as a summary analysis focusing on flexibility differences between the agreements:
1. Compare basket sizes as % of EBITDA/total assets
2. Analyze builder basket structures and starter amounts
3. Compare carve-outs and exceptions across agreements
4. Flag any MFN provisions and sunsets
5. Detail any RP blocker provisions