Finance Deals & Syndicated Lending · glossary
An allowance below which the borrower may act without asking the lenders, such as selling assets up to a set amount a year. The measuring words decide whether a basket refills each year or caps the total at any one time. Clause 18.2 · Chapter 9
Explained in Chapter 9, Undertakings and Financial Covenants, of Finance Deals & Syndicated Lending.
Allowances like the €2,000,000 for sales and the €1,000,000 for security are called baskets. Below the line, management acts freely, with no call to the banks and no fee. Above it, Atlas must ask, and asking brings the lenders in while the decision can still be shaped. Without a basket, selling an old laptop could be a breach.Read Chapter 9, Undertakings and Financial Covenants →
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