LC
Loan Covenant Review
🔵 Stable🕐 updated 2026-07-14
🔷 SkillSpec L3
pm-banking
Run a quarterly loan covenant compliance review: covenant table with required vs actual vs headroom, trend and trajectory-to-breach analysis, waiver and amendment options with pricing implications, early-warning indicators, and a watch-list recommendation. Use when asked to review covenant compliance, check covenant headroom, assess a potential covenant breach, or prepare a quarterly borrower monitoring review. Produces a structured covenant review with headroom table, trajectory analysis, and recommended actions.
What to give it
▸Facility & covenant package — each covenant's definition, required level, test frequency, cure rights
▸Current-quarter financials — and at least 2–4 prior quarters for trend
▸Compliance certificate — figures if the borrower has submitted one
▸Relationship context — prior waivers, recent management contact, sector conditions
✅ The bar it holds itself to
Every skill in this library self-verifies — these are this skill's own quality checks, straight from its definition.
✓Headroom computed with correct sign for max vs min covenants
✓Actuals recomputed from agreement definitions, or the reliance on borrower certificate is stated
✓Every <20%-headroom or 2-quarter-declining covenant has a trajectory projection with stated assumptions
✓Seasonality considered before a trend is called
✓Any existing breach triggers an explicit reservation-of-rights flag
✓Qualitative indicators reviewed, not just the numbers
⚠️ What it refuses to do
Do not report compliance as a snapshot — a compliant covenant with three quarters of decay is the finding
Do not accept borrower add-backs without checking them against the agreement's EBITDA definition
Do not project a breach without stating the assumption the projection rides on
Do not stay silent on a known breach — flag reservation of rights immediately
Do not recommend a waiver without naming what the bank gets for it (fee, margin, information, structure)
Install
npx pm-claude-skills add --agent claude # or codex · cursor · gemini · hermes
# or one-line MCP (every skill, any client):
claude mcp add pm-skills -- npx -y pm-claude-skills-mcpRelated skills
🔌 Embed this skill
Drop this on your blog, docs, or site — it renders a "Run this skill" card:
<div data-pm-skill="loan-covenant-review"></div>
<script src="https://mohitagw15856.github.io/pm-claude-skills/embed.js" async></script>💬 Discussion
Loan Covenant Review is one of 625 open-source professional AI agent skills — all SkillSpec L3.
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