Banks Help Home Builders With Covenants, For A Price

M. S.
August 2007
Bank Loan Report;8/13/2007, Vol. 22 Issue 32, p1
Trade Publication
The article reports on the new approach applied by banks to home builders using covenant-lite loans in the U.S. In the past, banks have been forgiving of home builders using covenant-lite loans by issuing waivers. However, banks are imposing substantial concessions from home builders including the setting up of collateral for revolvers, making unsecured revolvers secured, and paying fees and raising interest rates.


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