New Trends in Equity Cure Rights

Equity cure rights permit a holding company, sponsor, or other shareholder to make an investment in the borrower, thereby providing cash proceeds that allow the borrower to comply with financial maintenance covenants in the credit agreement and preventing or repairing a breach of those covenants. While the prevalence of equity cure rights during 2023 remained steady when compared to credit agreements filed in 2022, new trends are developing. Read this practice note providing an overview of recent trends in equity cure rights to learn more!

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  Use a financial covenant clause if you are drafting a credit agreement for a syndicated loan transaction.

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