Loan Covenants – Tim Vipond – CFI Education

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Exploring the Essential Features of “Loan Covenants – Tim Vipond – CFI Education”

Banking is a business of trust – learn how borrowers and lenders keep the faith with each other by using covenants!

• Discover how financial and non-financial covenants benefit lenders and borrowers
• Use financial metrics to evaluate creditworthiness and offer quality credits
• Become proficient in modeling financial covenants

Overview

Loan Covenants Course Overview

In this Loan Covenants course, we will demonstrate how loan covenants are used in the lending process. We will start this course by defining covenants and discussing how they benefit both the lender and the borrower. We will then compare different covenants and discuss what a credit analyst should do in case of a covenant breach.

After that, we will discuss key financial covenant ratios such as total liabilities to equity ratio (debt-to-equity), debt service coverage ratio (DSCR), working capital ratio, and debt to EBITDA ratio. We will explain what these ratios are, how to calculate them, and how they are used in evaluating a company’s creditworthiness.

Finally, we will complete a case study where you need to build a covenant model in Excel. We will calculate a company’s key credit metrics based on the historical and forecast financial statements. We will compare these metrics to the covenants that are set for this business and are suitable for the loan.  

Loan Covenants Learning Objectives

Upon completing this course, you will be able to:

• Understand the key concepts of covenants in a loan agreement
• Explain different types of loan covenants
• Calculate key financial covenant metrics
• Use a financial model in Excel to model financial covenants

Who should take this course?

This Loan Covenants course is perfect for any aspiring credit analyst working in insurance, underwriting, rating agencies, commercial lending, corporate credit analysis, and other areas of credit evaluation.

What you’ll learn

Introduction
Introduction 
Learning Objectives 
Downloadable Files
What Is a Covenant 
Positive vs. Negative Covenants 
Financial vs. Non-financial Covenants 
Monitoring Covenants
Interactive Exercise 1

Common Covenant Metrics
Key Financial Covenant Ratios
Total Liabilities to Equity Ratio / Debt to Equity
Debt Service Coverage Ratio (DSCR)
Working Capital Ratio / Current Ratio
Debt to EBITDA Ratio
Interactive Exercise 2
Interest Coverage Ratio
Quick Ratio
Fixed Charge Coverage Ratio (FCCR)
Other Types of Financial Covenants
Reporting Covenants
Interactive Exercise 3
Midway Check-in

Loan Covenants Case Study
Financial Covenants Case Brief
Financial Covenants Case Study Note
Download Case Study Model
Financial Statements and Metrics Overview
Company Overall Financial Performance
Liquidity Metrics
Leverage Metrics
Funded Debt to EBITDA Ratio
Coverage Metrics Part 1
Coverage Metrics Part 2
Fixed Charge Coverage Ratio
Debt Service Coverage Ratio
Loan Overview
Loan Structure
Fixed Charge Coverage Ratio Adjustment
Loan Impact on Credit Metrics and Covenants
Loan Stress Test
Covenant Modeling Charts
Completed Model Review
Download the Completed Model

Conclusion
Next Steps
Conclusion

Qualified Assessment
Qualified Assessment

Please see the full list of alternative group-buy courses available here: https://lunacourse.com/shop/