Financial Covenants: Project Finance Transactions | Practical Law
This Practice Note analyzes the most commonly used financial ratios in project finance transactions: the debt service coverage ratio (DSCR), the debt to equity (DTE) ratio, and the loan life coverage ratio (LLCR). This Note discusses how these ratios are calculated, when they are tested and the consequences to the borrower/project company and the project sponsor if they are not met. This Note also discusses certain other industry specific financial ratios.