Companies that may require a loan modification in the next few months should be looking, right now, at exactly what covenant relief they will need, and what concessions lenders may demand in exchange.
Company chiefs need to be able to answer the following questions: In the face of a brewing mess that may be played out in public, when should crisis management begin, and to whom should they turn to handle corporate calamities?
Lenders are suddenly raising prices and placing anti–cash-hoarding stipulations, interest-rate floors, and mandatory prepayment clauses into new loans, even with investment-grade borrowers.
