Engagement
Lender covenant review letter
Independent review letter addressing specific financial covenants — leverage, interest cover, or tangible net worth — with clear testing of the covenant schedule.
From ¥420,000 · quote based on covenant schedule
Request an engagement letter
Who this is for
Borrowers whose facility agreements require a third-party review of covenant calculations at period end.
Scope of work
- Reading of relevant facility clauses
- Recalculation of covenant metrics from the reviewed statements
- Review letter addressed to the named lender
Outside this engagement
- Negotiation of waiver terms with the bank
- Fairness opinions or valuation letters
How the review proceeds
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1
Clause extract
Confirm definitions of EBITDA, net debt, and measurement dates with your counsel’s extract.
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2
Recalculation
Tie each input to the financial statements and agreed adjustments.
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3
Letter issuance
Deliver the review letter once representations and statement drafts are final.
Timeline & delivery
Typically two to three weeks aligned with your statement finalisation.
Letter delivered electronically to the borrower for onward transmission, or directly to the lender if the engagement letter names them.
Preparation
Facility agreement extracts, draft statements, and management’s covenant worksheet.
Undefined or conflicting covenant definitions must be clarified before we can date the letter.
Ready to schedule a review?
Share your reporting period and entity structure. We will confirm fit and propose a fee range.
Enquire about this review