When is the normal time to start producing first draft of facility agreements?

And are there any good resources about financial covenants and break costs? (I have a book but it is very basic. I do have access to PLC and can peruse that.)

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I’m in London and a year and a few months qualified and have been asked to do three first drafts over the past 6mos... it has been intense. Fin covs are well covered in the leveraged LMA so I would look at that and then other facility agreements drafted by other people on the system for that same partner/client if poss. Break costs usually just keep to LMA. Sorry if you aren’t in London and LMA isn’t of use to you!

Thanks - I'm in a regional UK firm and 2.5 years qualified. I had a go at my first one plus 2 x amend and restates for the same borrower but was a bank's own style rather than LMA and it did not go so well in the covenants/break costs areas! Oddly quiet today so time to do some learning....

I get you!! To be fair fin covs and things like that I just do my best from term sheet and LMA clauses and then just footnote my thoughts for the partner to look at further as they can be so fiddly ... nice to have a quieter day esp in the Xmas run up 😊

Update - I spent the morning leaning the leverage covenant (EBITDA(period)/Total Debt (snapshot in time).

Then it got busy in the afternoon.... Liquidity covenant in January!

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