Covenant-lite

Long term funding

'Covenant-lite' describes loan agreements which have relatively fewer and less onerous ('lite') covenants, typically to conform to other loans of the same borrower.

Sometimes shortened to cov-lite.

The origin of 'lite' is an intentional mis-spelling of 'light', used to describe lower-alcohol beers.

See also

• Covenant
• Incurrence covenant
• Maintenance covenant
• Springing covenant