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Analyze debt covenants and credit agreement terms from SEC filings using Octagon MCP. Use when researching financial covenants, leverage ratios, interest coverage requirements, credit facilities, debt maturity schedules, and covenant compliance from 10-K, 10-Q, and 8-K filings.
npx skill4agent add octagonai/skills sec-debt-covenantoctagon-agentAnalyze debt covenants and credit agreement terms disclosed in <TICKER>'s latest SEC filings.{
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"prompt": "Analyze debt covenants and credit agreement terms disclosed in F's latest SEC filings."
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}Analyze debt covenants and credit agreement terms disclosed in F's latest SEC filings.Is T in compliance with all debt covenants based on latest 10-Q disclosures?Extract revolving credit facility terms and availability from BA's latest 10-K.Analyze the debt maturity schedule and near-term obligations for GE.What are the maximum leverage ratio covenants in CCL's credit agreements?Extract interest coverage ratio requirements from NCLH's debt covenants.| Type | Characteristics |
|---|---|
| Senior Secured | First lien, asset-backed |
| Senior Unsecured | No collateral, higher rate |
| Subordinated | Junior to senior debt |
| Convertible | Can convert to equity |
| Term Loans | Fixed maturity, amortizing |
| Revolving Credit | Drawable, flexible |
| Facility | Purpose |
|---|---|
| Revolving Credit | Working capital, liquidity |
| Term Loan A | Bank loan, amortizing |
| Term Loan B | Institutional, bullet |
| Bridge Facility | Short-term, M&A |
| Letter of Credit | Guarantees, obligations |
| Covenant | Typical Requirement |
|---|---|
| Leverage Ratio | Debt/EBITDA ≤ X.Xx |
| Interest Coverage | EBITDA/Interest ≥ X.Xx |
| Fixed Charge | (EBITDA-CapEx)/Fixed Charges ≥ X.Xx |
| Minimum EBITDA | EBITDA ≥ $X million |
| Maximum CapEx | CapEx ≤ $X million |
| Minimum Liquidity | Cash + Availability ≥ $X |
| Covenant | Restriction |
|---|---|
| Debt Incurrence | Limits new borrowing |
| Lien Incurrence | Limits secured debt |
| Restricted Payments | Limits dividends, buybacks |
| Asset Sales | Requires reinvestment |
| Affiliate Transactions | Arms-length requirement |
| Covenant | Requirement |
|---|---|
| Tested Periodically | Quarterly or annually |
| Must Maintain | Ongoing compliance |
| Cure Rights | Ability to remedy |
| Spring | Only tested when drawn |
| Metric | Calculation |
|---|---|
| Total Leverage | Total Debt / EBITDA |
| Net Leverage | (Total Debt - Cash) / EBITDA |
| Senior Leverage | Senior Debt / EBITDA |
| Secured Leverage | Secured Debt / EBITDA |
| Metric | Calculation |
|---|---|
| Interest Coverage | EBITDA / Interest Expense |
| Fixed Charge | (EBITDA - CapEx) / (Interest + Principal) |
| Debt Service | EBITDA / (Interest + Principal) |
| Cash Interest | EBITDA / Cash Interest |
| Metric | Calculation |
|---|---|
| Minimum Cash | Cash and equivalents |
| Minimum Liquidity | Cash + Revolver Availability |
| Current Ratio | Current Assets / Current Liabilities |
| Metric | Current | Covenant | Cushion |
|---|---|---|---|
| Leverage | X.Xx | ≤Y.Yx | Z.Zx |
| Coverage | X.Xx | ≥Y.Yx | Z.Zx |
| Liquidity | $XM | ≥$YM | $ZM |
| Cushion Level | Assessment |
|---|---|
| >30% | Comfortable |
| 15-30% | Adequate |
| 5-15% | Tight |
| <5% | At risk |
| Term | What It Specifies |
|---|---|
| Facility Size | Total commitment |
| Maturity Date | When it expires |
| Interest Rate | Pricing terms |
| Commitment Fee | Unused fee |
| Amortization | Repayment schedule |
| Prepayment | Early repayment terms |
| Component | Description |
|---|---|
| Base Rate | SOFR, Prime, LIBOR |
| Spread | Margin over base |
| Floor | Minimum rate |
| Grid Pricing | Spread varies with metrics |
| Year | Amount | % of Total |
|---|---|---|
| 2025 | $XM | Y% |
| 2026 | $XM | Y% |
| 2027 | $XM | Y% |
| 2028+ | $XM | Y% |
| Factor | High Risk | Low Risk |
|---|---|---|
| Near-Term Maturities | >25% in 1 year | <10% in 2 years |
| Market Access | Limited | Strong |
| Credit Rating | Downgrade risk | Stable/upgrading |
| Covenant Headroom | Tight | Comfortable |
| Consequence | Description |
|---|---|
| Default | Triggers acceleration |
| Cross-Default | Affects other debt |
| Waiver Required | Lender approval needed |
| Amendment | Terms modification |
| Cure Period | Time to remedy |
| Mechanism | How It Works |
|---|---|
| Equity Cure | Inject equity to improve ratios |
| Asset Sale | Reduce debt |
| Amendment | Modify covenant level |
| Waiver | Temporary relief |
| Filing | Location |
|---|---|
| 10-K/10-Q | Debt footnote |
| 10-K/10-Q | Liquidity discussion in MD&A |
| 8-K | Credit agreement announcement |
| Exhibits | Full credit agreement |
| S-1/424B | Debt description |
| Exhibit | Content |
|---|---|
| Credit Agreement | Full terms |
| Indenture | Bond terms |
| Amendment | Modified terms |
| Compliance Certificate | Covenant calculations |