Configuration
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Educational Use Only
This tool provides a self-assessment / educational framework for internal planning purposes only. It is not a regulatory audit, legal advice, or a substitute for a formal compliance review by a qualified advisor. Verify all interpretations against the official source text and applicable RTS/ITS/guidance published by the relevant authority.
Covenant Terms — configure up to 6 covenants
Covenant Type
Direction
Threshold
Actual (LTM)
Test Type
Stress Test Scenarios — EBITDA-based covenants only
Stress scenarios scale EBITDA-dependent covenant actuals (leverage, coverage, EBITDA floor). Liquidity and balance-sheet covenants stress separately via balance sheet shock if applicable.
About This Tool
Covenant Types
Net Debt / EBITDA≤ threshold
EBITDA / Interest≥ threshold
EBITDA / Fixed Charge≥ threshold
Minimum EBITDA≥ threshold
Minimum Liquidity≥ threshold
Debt / Equity≤ threshold
Current Ratio≥ threshold
Capex Limit≤ threshold
Maintenance vs. Incurrence
Maintenance: Tested on each reporting date (typically quarterly). Breach is an immediate event of default — most common in bank loans.
Incurrence: Only tested when the borrower takes a specific action (new debt, dividend). Breach blocks the action but doesn't trigger default on existing debt — typical in high-yield bonds.
Incurrence: Only tested when the borrower takes a specific action (new debt, dividend). Breach blocks the action but doesn't trigger default on existing debt — typical in high-yield bonds.
Headroom Tiers
■ Safe — headroom ≥ 20% of threshold
■ Tight — headroom 5–20%
■ Breach — covenant violated
■ Tight — headroom 5–20%
■ Breach — covenant violated
Limitations
This tool uses current LTM actuals and linear projections under stress. It does not model seasonality, covenant step-downs, cure rights, or waiver mechanics. Always review the full facility agreement for precise covenant definitions.
Compliance Results
Base Case — Covenant Compliance
| Covenant | Threshold | Actual (LTM) | Status | Headroom | Type |
|---|
| Covenant | Base Actual | Stressed Actual | Threshold | Stressed Status | Headroom Change |
|---|
Compliance Rationale & Monitoring Notes