Borrower Strategies for Dealing with Increased Interest Rates | Practical Law

Borrower Strategies for Dealing with Increased Interest Rates | Practical Law

This Practice Note considers strategies that businesses and their lenders may explore to soften the impact of high interest rates and spiraling debt service costs that exceed a borrower's expectations and business projections. This Note focuses on loan agreement provisions that are directly impacted by increased interest rates, as well as the effect on other loan agreement provisions of efforts by a borrower to reduce its debt service costs.

Borrower Strategies for Dealing with Increased Interest Rates

Practical Law Practice Note w-040-5095 (Approx. 8 pages)

Borrower Strategies for Dealing with Increased Interest Rates

by Jill Bronson and Nicole Leimer, Faegre Drinker Biddle & Reath LLP, with Practical Law Finance
MaintainedUSA (National/Federal)
This Practice Note considers strategies that businesses and their lenders may explore to soften the impact of high interest rates and spiraling debt service costs that exceed a borrower's expectations and business projections. This Note focuses on loan agreement provisions that are directly impacted by increased interest rates, as well as the effect on other loan agreement provisions of efforts by a borrower to reduce its debt service costs.