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Are Your Clients Hoarders?!

February 22, 2022

Anti-hoarding provisions limit a borrower’s ability to stockpile cash under its revolving line of credit to shore up liquidity in the event of an economic downturn in the oil and gas market. While the use of these provisions has declined in recent years, the COVID-19 pandemic and the ensuing slowdown in the oil and gas markets caused lenders to seek the inclusion of anti-hoarding provisions once again in 2020. Read this practice note that provides an overview of the purpose and key characteristics of anti-hoarding provisions and discusses recent market trends in certain publicly filed deals from 2021.

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