"Baskets" are leveraged finance jargon for certain permissions a Sponsor's borrower group has to undertake certain transactions that, because of they are viewed by lenders as "leakage" items of a more risky nature to the...more
10/8/2025
/ Acquisitions ,
Borrowers ,
Contract Terms ,
Creditors ,
Debt Financing ,
Debt Instruments ,
EBITDA ,
EU ,
Lenders ,
Leveraged Finance ,
Loans ,
Private Equity
WHAT IS A LIQUIDITY COVENANT AND WHY IS IT INTRODUCED?
A liquidity covenant is a requirement for a business to maintain a minimum amount of available cash on a balance sheet.
Originally Published in Butterworths...more