ContextIn the event of a contract amendment, a waiver, or even a data entry error, you may modify the covenants linked to your transactions. The purpose of this feature is to enable you to amend any aspect of the covenants during the lifetime of the contract, whilst maintaining a fully traceable history: any change made to the covenant details will result in the creation of a new version, which will be tracked in the same way as previous versions. |
Case study: I need to modify the expected value for the 2023 leverage ratio following the approval of a waiver. The expected value is 2.75 instead of the 3 originally forecast when the contract was signed.
Step 1 - Specify the reason for the modification
To start, navigate to the “Covenant list” page of your transaction. Click on the covenant you wish to modify, then select “Edit” in the top right-hand corner of your screen.
Enter the three pieces of information requested:
- The reason allows you to specify the purpose of the modification (waiver, amendment, data entry error, etc.).
- The application date is the date from which the new version of the covenant applies. Please note that all previous periods before this date will remain unchanged.
Example: Suppose today is 21/10/2024, the date the waiver affecting the covenant is validated, with the following dates: test date 31/12/2023, response deadline 30/06/2024. You might tend to enter 21/10/2024 as the application date, but the relevant application date to enter is 31/12/2023, i.e., the date from which the amendment takes effect. If you select 21/10/2024, this control will not be recalculated.
- The comment enables you to provide context for the change, and will be recorded.
Click “Validate” to proceed to the covenant modification page.
Step 2 - Modify the covenant details
On this page, you may now amend as many elements as required. In our example, we want to change the expected ratio value for 2023 from 3 to 2.75:
Initial covenant :
Modified covenant :
You can also amend the reason, application date or comment again by clicking on 🖍️ icon at the top right of your screen, in the blue banner.
Once your updates are complete, click “Register” at the top right. A verification window summarising the changes will appear.
Click “Publish new version” to finalise your action. The new version of the covenant is saved:
Conclusion
This procedure allows you to :
- Maintain a complete version history of created and published covenants.
- Automatically recalculate the impacted controls: in the covenant control tab, your target ratio to be monitored is now displayed as 2.75, instead of the previous 3.
Please note:
- If the covenant has not yet been published, modify it directly.
- The new version of the covenant will be visible to all stakeholders involved in the transaction.
- No notification will be sent to stakeholders when the new version is published.
- Controls that have already been checked by an Agent (validated, breach or non-compliant) remain unchanged. Only controls with the status waiting/coming/result received/result KO can be recalculated according to the application date you specify.