Leveraged Loan Covenant Training
Master the language of leveraged loan covenants through real-world case studies
Course Introduction
Covenants have grown more complex with every market cycle. Since the Global Financial Crisis, borrower flexibility has expanded, terms have converged across instruments, and the legal language underpinning leveraged finance has become increasingly technical.
The result? A market where instruments are converging, terms are evolving, and professionals must develop legal fluency tailored to each new challenge.
That’s why Fox Legal Training developed the Leveraged Loan Covenant Training (LLCT), a course designed to give credit professionals the confidence to interpret, analyze, and apply covenant language with precision.
Why This Course Matters
Covenants are the levers that shape flexibility, risk allocation, and value protection. Yet their power lies in the details — in the words themselves. For many professionals, the challenge isn’t understanding the concepts, but navigating the dense legal drafting that defines them.
LLCT bridges that gap. It focuses specifically on leveraged loans, combining conceptual understanding with hands-on practice. Every provision is taught using examples from actual deals, so participants can read real drafting, grasp its purpose, and evaluate what truly matters in negotiation and risk assessment.
This isn’t just theory — it’s practical fluency in the language that governs leveraged finance.
Case Studies in Action
LLCT is built on a simple idea: to understand covenants, you have to see them in action.
Each topic is explored through case studies drawn from real-world documentation, allowing you to connect abstract analysis to the deals you see every day. By working directly with the language, you’ll discover how subtle differences in drafting can reshape credit support, investor protections, and risk exposure.
This immersive, example-driven approach turns complex legal text into practical insight — building confidence and fluency in how you approach covenants.
Inside the Course
LLCT follows a clear, structured journey — from the foundations of covenant analysis to the realities of defaults, waivers, and amendments.
You’ll begin with the analytical framework and an introduction to The Really Cool Company case study, then progress through key modules such as:
- Capital Structure & Credit Support – Explore guarantor coverage and collateral analysis through real-world examples.
- Debt & Liens – Understand incremental facilities, MFN conditions, ratio debt baskets, reclassification, and cross-references.
- Calculation Mechanics – Follow covenant capacity step-by-step through ratio and reclassification case studies.
- Restricted Payments & Asset Sales – Analyze capacity, proceeds application, build-up baskets, and reinvestment mechanics.
- Economic Terms, Sweetheart Deals & Changes of Ownership – Compare leveraged loans and high yield bonds, covering MFN protections, affiliate transactions, and portability.
- ESG & Sustainability-Linked Transactions – Examine sustainability-linked loans, SPTs, and verification/reporting requirements.
- Reports, Defaults, Amendments & Waivers – Work through real examples of information undertakings and yank-a-bank provisions.
Every section combines real covenant language, interactive lessons, and short assessments to reinforce learning.
What You’ll Take Away
By completing LLCT, you’ll develop a disciplined, systematic approach to covenant analysis that blends financial and legal perspectives. You’ll learn to read and interpret covenant drafting with confidence, understanding how small variations in wording can significantly alter risk and protection.
Through case-based learning, you’ll gain hands-on experience with real documentation, building the insight needed to identify key pressure points in negotiation and structure. More importantly, you’ll cultivate the fluency to assess when terms protect your position — and when they don’t.
This course doesn’t just teach knowledge; it builds confidence and judgment — the ability to apply what you’ve learned in live deal contexts and make decisions that preserve value.
Building Confidence in Covenant Analysis
In a market defined by evolving terms and converging instruments, financial insight alone is no longer enough. The true differentiator for today’s credit professionals is the ability to read between the lines — to interpret legal language, anticipate its implications, and act decisively.
The Leveraged Loan Covenant Training gives you that edge. Through immersive, case-driven learning, it transforms complex legal drafting into actionable understanding — helping you navigate leveraged loan covenants with clarity, control, and confidence.