Credit Agreement Basics

Time for another HYH Premium Piece!

This >3,000 word piece is going out broadly to everyone, but we’ll be back with a regular, free post next week. Yesterday though, I did write briefly about consolidation in private credit, in my twice a week, short-form newsletter The Wall Street Rollup.

Note, my most popular HYH Premium pieces are Interviews For Credit Seats, Credit Memos For Public Credit, and Credit Memos For Private Credit. These pieces are a compilation of everything I used to recruit for and land high-paying seats in Credit.

I wanted to talk a bit about credit agreements from the lens of a new issue term loan hitting the market. Being a credit professional in that fast paced of an environment isn’t about reading the entirety of the credit agreement and negotiating the little things - it’s about getting to the key points and terms and understanding what you need to convey to your IC and what you need to push back on.

Personally, I think every credit fund putting in at least a $50mm order for a senior secured term loan should be submitting it subject to doc changes. Clearly, there’s too many credit analysts that are ruining the market because they don’t understand docs and blindly need to put money to work.

In the world of LME, what a borrower can do is all that counts in a more stressed situation.

Subscribe to Premium to read the rest.