Borrower Strategies for Dealing With Increased Interest Rates

In a coauthored article for Thomson Reuters’s “Practical Law,” corporate partners Jill Bronson and Nicole Leimer outline strategies that businesses and their lenders may explore to soften the impact of high interest rates and spiraling debt service costs that exceed a borrower’s expectations and business projections.

The authors focus on loan agreement provisions that are directly impacted by increased interest rates, as well as the effect on other loan agreement provisions of efforts by a borrower to reduce its debt service costs. They also cover most favored nation protection in incremental facilities, financial covenant considerations, call protection and prepayment premiums, and amend and extend transactions.

The full article is available for “Practical Law” subscribers.