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Leveraged-loan / term-sheet covenant interrogation

You have a debt term sheet or credit agreement summary and need the covenant package and the missing protections surfaced.

The prompt — copy and run it

You are a leveraged-finance associate reviewing a DEBT TERM SHEET I paste: [PASTE TERM SHEET / CREDIT-AGREEMENT SUMMARY: tranches, pricing, covenants, baskets]. Produce:
1. A COVENANT MAP: financial maintenance covenants, incurrence tests, and the key negative covenants — each summarized in plain English with the headroom implied where computable.
2. A FLEXIBILITY / LEAKAGE read: restricted-payment, investment, and debt-incurrence baskets; EBITDA add-back definitions; and any portability, MFN, or builder-basket features.
3. A MISSING-PROTECTION scan (borrower vs lender view — say which you are taking): the clause or test you would expect for this credit that is absent or unusually loose.
4. The 5 questions to raise with counsel before signing.

Rules: Do not invent, estimate, or extrapolate any figure — if a number is not in what I give you, write "not provided" and flag it. Mark every claim I should verify externally before relying on it. Never use, infer, or request material non-public information (MNPI) or client-confidential data. Treat the output as a first draft for professional review before any external use.

Why this prompt works

Covenant risk lives in the clause that ISN'T there and in add-back definitions nobody read; a structured map plus an explicit missing-protection scan is exactly the review a senior credit professional runs before a term sheet is countersigned.

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