Waiver
Short definition
A waiver is the lender’s agreement not to exercise a contractual right for a specified breach or deal. It does not delete the right; it suspends it for that event and window. The price can be spread, collateral or a dividend lock-up.
Detailed explanation
It can be one-off or for a period. In a syndicate, majority or unanimity slows it. A waiver may be packed with a new covenant cap or extra reporting.
A waiver refused is a default. Bargaining power is higher before headroom is gone.
Why it matters for the CFO
Time and price set crisis management. A late waiver combines a draw stop with a cash crisis.
How to read it
Waiver fee + spread step-up is the cash cost of the miss. Repeat waivers mean the pack needs a reset.
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Definitions are educational. They are not investment, credit or tax advice.